Dating apps have become today the “great connector”, facilitating users to meet new people and, at the same time, revolutionizing the way we find partners, couples and even best friends.
Currently, the market is flooded with dating applications, reaching a number of 1,500. There are many thematics of these kind of platforms and each of them adapted to a different market niche: from applications that involve specific professions (FamersOnly Dates) to that ones that help dog owners find the perfect couple for their pet ( Twindog).
Even though this market is booming and it may be easier to attract users, it is necessary to have a good strategy for the creation of your app, due to the high competition that exists in this market.
Facts about the great growth of dating apps
Recent research indicates that the number of users of dating applications around the world is also increasing. In the United States, the dating apps industry generated, in 2016, $ 2.7 billion in revenue, and is on track to grow 5% more, during 2018.
On the other hand, the largest demographic increase has occurred among users between 18 and 24 years old, increasing a 27%, compared to 10% in 2013.
The time spent on this type of platform is also growing. In January 2017, the well-known Tinder app, revealed that users used to expend about 90 minutes a day in the application, logging at least 11 times.
But not all are good news. As the use of these kind of applications increases, the competition also grows, and at the same time, the pressure of the application sellers augment, since, it is more difficult for them to acquire, commit and retain a large number of users.
Conversion rates and users increase
Nowadays, people is using dating apps to find that special person. What was normally seen as a last resort is quickly becoming the first choice of users.
In the midst of this flurry of interest and activity around these kind of platforms, the Liftoff dating apps report explains that the costs reflect a decrease:
- The average cost to acquire a new user decreases in 2017 ($ 2.75) by 18%, compared to the previous year ($ 3.36).
- The cost for a user to complete a registration ($ 5.12) is also lower, reaching 23% less than the previous year ($ 6.65).
- On the other hand, the installation for registration, with a rate of 53.8% in 2017, is slightly higher than the rate registered in 2016, which was 50.6%.
- But the real surprise is the drop in the cost to acquire a user who commits to a subscription.
In general, costs have decreased and conversion rates remain stable. What are the main reasons? Mainly because the social stigma associated with the use of dating apps has changed. On the other hand also influences the determination of sellers, forced to compete in a saturated market, struggling more and more to identify and involve the user from the start.
Whatever the reason, the result points are certainly positive and will surely continue in 2018. Clearly, users are willing to install the applications and complete the registration, entering valuable data, which are a great help for a future improvement of these platforms.
Engagement differences by gender
Boosting the subscription is considered the biggest challenge that marketers are facing, in order to have the same number of male and female subscribers.
Starting with the installation cost, men usually have a lower price ($ 2.48), compared to women who represent 18% more. Although interestingly, the installation rate for registration is usually 60.5% for women, compared to men with only 47.4%. This means that the female audience, although they are a little more expensive to acquire, is also very committed.
Conversion costs and subscription rates have also undergone an interesting change. On the one hand, the acquisition costs for subscribers of male ($ 180.89) and female ($ 198.75) applications have decreased compared to the previous year (men: $ 228.55; women: $ 251.12). However, installation fees for subscription, for both years, are approximately at the same level. Therefore, it is quite obvious, that marketers must concentrate much more effort and creativity in converting users into subscribers.
Engagement differences according to the operating system
A study of funnel costs and participation rates reveals striking similarities and opportunities between the two operating systems, iOS and Android. For example, the cost of acquiring a user who completes a registration is very different depending on the platform ($ 3.76 for Android and $ 6.47 for iOS), while conversion rates remain approximately the same.
In summary, iOS users can cost almost 70% more than Android users, but they are also more likely to compromise since the installation conversion rate to subscribe for iOS users is 82% higher than for those of Android.
Prioritize the goals and tactics of your campaign based on the application you offer and the audience you want to target.
Engagement differences by regions
A recent BBC research shows data from 52 countries around the world where users use dating apps to find fun and romance.
Costs and conversions by region
- Asia-Pacific: a region where a significant percentage of the population is under 25, represents an incredibly attractive market for dating applications. Despite having a culture that is markedly more conservative compared to the West, a combination of local and global dating applications is flourishing and struggling for market share.
- North America: the birthplace of many successful dating applications, leads the industry in both costs and conversion rates. It is a sophisticated market where dating applications are part of the social culture: which helps explain why the installation conversion rates for registration (65.8%) and Installation for subscription (4.1%) are out of the ordinary.
- Europe: it is a market in movement with moderate prices and a growing interest in this type of applications. Detecting a business opportunity, The Meet Group, whose social and dating applications attract users in more than 100 countries, acquired LOVOO from Germany in September 2017. This platform to find a partner, was ranked as the number one app (measured in downloads) among users in Germany, Switzerland and Austria.
- South America: it is not a market for beginners, but the incredible success of local applications such as Kickoff, which was initially launched in Brazil and has expanded throughout the region, shows that the applications to find a partner are in growth.
Success of dating apps according to the seasons of the year
Success of dating apps according to the seasons of the year
Flirting applications have changed the way people look for dates, couples and friends, and have redefined the specific seasons of the year in which people are looking for someone to connect or maintain a relationship with.
- Cuffing season: a specific season, in which the use of dating apps increases considerably. This trend usually begins in the fall, as children return to school and people take stock of their lives. Another reason is that singles begin to look for someone to accompany them to parties and office and family events, as the holiday season approaches.
- Spring and beginning of summer: it is another period in which thoughts can turn into love and wanting to plan a vacation with someone special, can be quite tempting. It is not surprising that these are also months when marketers can acquire users at reasonable prices and achieve high participation rates.
- Valentine’s Day: The high prices around this date, are the result of the fierce competition of a large number of dating applications. Still, we can not say the same about participation rates. With only 63.1%, the conversion rate is less impressive. Studies conducted by Liftoff, highlight months in which the conditions are much more favorable, so, marketing specialists would do well to distribute their investment over the seasons , not only on key days.
Currently, mobile devices and looking for a partner are increasingly related. Although, the more people download these kind of applications, more competition will exist and, therefore, marketing specialists should pay more attention to the behaviors, characteristics and contexts of the audience to which they want to address.
Here are 3 important tips to make your dating app unique:
1- Consider 2018, a year of opportunities: people from all over the world are increasingly using this type of platform to find a partner. Expand your network and examine opportunities in other regions where costs are not as high.
2- Focus on your campaigns, giving more attention on the user’s main need and context.
3- Commit yourself and surprise. either to capture potential users or to maintain those that are already related to the application.