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Match, recall, is the industry heavyweight: It's been online longer than I have -- since 1995; it's the biggest online dating site (along with Adult Friend Finder); and it makes a lot of money. Instead of connecting with people you know, you set up a username to mask your identity, hope no one you know sees you, and spend the whole time filtering. ) to spend your time avoiding people you don't know, hoping to find your match. Last year it "became the exclusive online dating service on Yahoo" and saw an 8% bump in organic subscribers in the second quarter; a nifty integration with Glamour to sign up more ladies, featuring some cursive font, hearts and yes, usernames.
Revenue dipped in 2009 but just hit the $400 million mark in 2010. 1 spot when you Google "online dating." Tech Crunch reports Match wanted to acquire a younger userbase, and according to IAC, OKCupid has "been the fastest growing dating site in the advertising-based category." Did you hear that? Otherwise sensible filtering criteria, like who you know in common, is not possible in a world of usernames, so you're left with "10 miles from 10005" and mysterious matchmaking algorithms. Match historically spends about half its revenue on advertising to bring new users in the door (and through the subscription pay wall). IAC also set up a joint venture with Meetic in Latin America and bought Singlesnet in 2010. They've grown entirely by word of mouth -- and just announced they're about to go straight, too. The only dating sites that will survive in spite of the social graph will be the adult dating sites.
Tinder shook up the dating world, known for its long personality quizzes and profile-based matchmaking, with its ego-boosting, hook-up-friendly, mobile flirting app: Two daters are presented with each other’s photos, and if (and only if) they both like what they see and swipe right, the service hooks them up with a chat box, where the daters can take it from there.
After taking off on college campuses, Tinder now boasts 26 million matches a day, and its leaders have invested heavily in maintaining its reputation as a hook-up haven for young people.
In the world of online dating, advertising is a 100% data-driven process of acquiring, upselling, and replacing users. Diller's aging anti-social network brings in about a quarter of IAC's annual revenue.