This valentines, it’s so much more easier to find a date of your dreams, yet the services bringing people together is having a tough time earning their bread.
Thousands of dating services and websites offer genuine contacts and real results to tens of millions of people worldwide for a match or just for an affair. These websites are providing service that is seen as quite successful in both driving online website traffic and getting some real business. However sluggish returns on investments is keeping investors away. Reports CBC
CBC reports that dating sites revenue is forecast to grow more slowly over the next five years. In the U.S., larger players are expected to continue acquiring smaller ones, potentially shrinking the number of companies, according to IBISWorld.
CBC report continues:
“Match Group, the largest company by market share in both Canada and the U.S., has been buying up smaller dating services for years. In 2011, Match Group acquired OkCupid, and in 2015, it bought the Vancouver-based dating site, Plenty of Fish, for $575 million US.
The company says it controls more than 45 brands, including Match.com and Tinder, but it doesn’t disclose a complete list of all of them. Still, its well-known brands have been part of the Canadian landscape for years.
Take Tinder, for example.
Chris Bennett worked in downtown Toronto, but he used to live outside of the city. He says that, without Tinder, he may not have met his fiance when he was using the app two years ago.
“We’re getting married July 20th,” says Bennett. “It’s worked out really well.”
That’s what Scott Darling is up against with his dating app, Sniffr.
Sniffr aims to help dog owners to meet other dog owners. It originally launched in 2014, but has relaunched with upgrades several times since.
Darling, one of the founders of Sniffr, says he’s invested $100,000 in the app but it has only had a few thousand downloads in Toronto, Los Angeles and San Francisco so far. Still, he’s hopeful.”
In Canada, online and mobile dating revenue is approximately $112.7 million, just a fraction of what it is in the U.S., at $2.4 billion, according to IBISWorld.
The piece is written by Jacqueline Hansen and you can read the full article here.
Looks like there is a serious gap in performance of the domain segment and investor confidence in this niche. Being a large niche that had it’s gloomy days after the Y2K is still to find firm footing. One major attribute to this can be low advertisement bid rates due to sluggish conversions. The niche needs to setup it’s strategy right in order to provide good conversions to improve this reputation. Dating sites also find low CPM