MOBILE DATING

ONLINE OFFLINETO

Meghan Thomas

Lu Meng

Zhan Yuan

Onyinye Udenze

Vasili Dimopoulos

INDUSTRY

ANALYSIS

MGMTCOM

506F

GROUP B

TEAM 10

- Growing industry with huge potential

- Dynamic industry with more specialization and

technology

- Key players and more entrants

- Revenue streams from advertisements and premium

services

- Marketing and Advertising for success in the Mobile

Dating Industry

Executive Summary

IIndustry

TTrends

CCompetitive

Landscape

BBusiness Model

What are the characteristics of the

industry?

INDUSTRY

INDUSTRY

Internet

$ 8 trillion

Social Network

$2.5 trillion

Dating

$???

I T

C B

INTERNET

Early

90’s

Fast iterative- TOP 500: 30 days

- Top 5000: 35 days

Micro

innovation

Information

I T

C B

SOCIALUser centered

- 500m users

- negative cash flow

Data driven

Sharing

2004

I T

C B

DATING

1995

2003

Matchmaking

Familiarizing- upgrading relationships

Geolocation

I T

C B

Online

Mobile

Match.com eHarmony

INDUSTRY

Internet

$ 8 trillion

Social Network

$2.5 trillion

DATING

$2.1 billion? I T

C B

Static

Dynamic

I T

C B

TI

C B

TRENDS

Great Potential

Going Mobile

Techy Love

Niche Markets

Social Image

TI

C B

GOING

MOBILE

Geography information marries online

dating and offline dating

2011

Wherever & Whenever

2012

Mobile dating apps > Desktop

Mobile dating revenue

increased 29% to 213 m

Mobile dating users doubled to

13.7 m from 2011 to 2012

TI

C B

NICHE

MARKETS

Market Segmentation &

Market Target

Undeserved market is big and

demand is different

City Folks Just

Don’t Get ItFarmersOnly

SouthEast

BlackPeopleMeet

DateMyPet

JDate

CynderTinder for Cynthia’s

students

TI

C B

TECHY

LOVE

Smarter

Algorithms

More Channels

More Date

1/3 Marriage

2018

2012

2005

46%

80%

TI

C B

SOCIAL

IMAGE

No longer for just losers

Shift in user attitude:

A good way to meet people

Meeting online is twice as likely to

marry as those who met offline

TI

C B

Going Mobile

Techy Love

Niche Markets

Social Image

WHO

ARE

THE

PLAYERS?

TI

C BC

I T

B

COMPETITIVE LANDSCAPE

C

I T

B

Tinder

“Plenty of Matches,

Plenty of Weirdos”

350

750Usersper day

Cons Pros

C

I T

B

Hinge

“Seems like the next generation

of mobile dating”

Launched 2011

Users 8M daily

Funding to date 24 M

Cities 15

Retention Rate 75%

Cons Pros

8

12

Users todate

37% more likely to date someone if

you’ve got Facebook friendsC

I T

B

Grouper“You go to a bar, randomly hit on girls? If

you’re lucky, one out of 10 times, if all goes

well, after a lot of hard work and a lot of

painful failure, you end up across the table

from a group of girls sharing casual drinks.

With Grouper, that’s where you start.”

-Michael Waxman, Founder

Launched 2011 mobile 2013

Users “hundreds of thousands of drinks”

Funding to date ??

Cities 20

Retention Rate 93%

Cons Pros

#groupergram

C

I T

B

Coffee

Meets

Bagel

“Groupon of mobile dating”

Cons Pros

0.640

3.4

Users

C

I T

B

HOW

DO

THEY

MAKE MONEY?

C

I T

B B

I T

C

Marketing

Upgrades

Valuations

Acquisitions

BUSINESS MODEL

B

I T

C

Marketing

Sponsored advertisement

Providing locations to

meet: HOTSPOT

Staying relevant

Promote on all social

networks

B

I T

C

Upgrades

“Freemium” Business Model- Needs Wide Distribution

- Ie : Skype calls and Pay for Voicemail

LinkedIn 75% Rev Premium, 25% Adverts

- Free = Emotional hot button Free = “nothing to lose”

- Remember: Not Fake Free!

$1 cell phones with a contract, Gillette Razors

“The easiest way to get 1

million people paying is to

get 1 billion people using,”

-Phil Libin,

CEO of Evernote

Most Apps generate revenue from Memberships

B

I T

C

Valuations

"I see the industry breaking off into a

billion different directions,” -Marc Lesnick,

founder of iDate,

an annual trade show for the online dating industry.

Earnings

Evaluations of Each Other

Asset-based Valuation

DCF

B

I T

C

Acquisitions

Watch out for IAC(Match.OkCupid)

- Owns 28% of 2500+ industry of

competitors

Key Performance Metrics:

- Avg daily visitors

- # active accounts

- Conversion rates

- Customer Loyalty rates

- # of matches

Tinder evaluated at $5 Billions by

Barclays

- Scrutiny b/c no monetary value

B

I T

C

Marketing and Advertising

Access to niche markets

Turning to technology

Reputation

Ease of Access

Success

Factors

B

I T

C

- Taking the industry from O2O – Online to Offline

- Continue to grow

- Mobile, Niche, Technology, Making it Cool

- Many Platforms to meet folks

- Areas for Business

Key Takeaways

QQuestion?

TThank You