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Love, Dating and Relationships
Online Dating
Websites
Summary &
Nature of Online Dating
There are
literally thousands of dating/introduction service websites on the Web. It is
beyond the scope of this website to cover them all, or to include a listing of
all their names. Hitwise, a research firm that tracks the online dating world,
among others, claimed in mid 2004 that there were at least 850 dating websites
that could be identified.
Online dating services are definitely more
mainstream than several years ago, but are in trouble and beset by customer
dissatisfaction today. Memberships soared after Sept. 11, 2001, but growth has
slowed dramatically the past two years as the "novelty" has worn off. Now,
the 850+ dating sites are fighting over retaining members, branching out to
off-line services, and focusing more on long-term relationships and marriage,
not just dating.
The hot topic now is background checks
(criminal, marital status, etc.) and the accuracy of the free profiles dating
sites' members post. A handful of states have bills pending or proposed that
may mandate background checks for these services, but so far the major dating
sites have been excluded from this legislation, due to their lobbying efforts.
According to the Online Publishers
Association, U.S. consumers spent an estimated $490 million on online
Personal/Dating content during 2005, up less than 5% over 2004.This is
compared to 47% growth in 2003 and more than 300% in 2002.
Many people
jumped on the bandwagon in recent years, lured by the hope
of making it big with a dating website. However, most are not
profitable and there are dozens of dating websites at any given time up for
sale. The U.S. market is basically saturated now, and consolidation is
inevitable. It has already taken place at the highest levels.
Europe and
Asia are the next big markets to see rapid growth.
The United States online personals market
has evolved over the last six years. Until recently, the market was fragmented
but is now consolidating as the main competitors make acquisitions and tie up
the major available routes for online personals services to reach large
numbers of potential customers by establishing relationships with the major
Internet portals, search engines and Internet service providers.
There is no question that the dating
websites used to represent the fastest-growing segment of this
industry, and that they have hurt many of the other competing introduction
services in the process. However, even off-line competitors say that they have
actually helped to increase the size of the pie for the entire market—bringing
dating services into the mainstream. Many singles today start out using these
low-priced websites and eventually migrate to higher-priced services with more
personal service (matchmakers). Many soon realize just how much work it is to
surf the Internet and how photos and information
about potential mates can be unreliable.
The online personals
business as been dominated for the last four years by Match.com, which is
owned by InterActiveCorp, and the Personals division of Yahoo Inc.
“Still years behind the United States, in
Europe, online personals are expected to be the biggest category for paid
content for the foreseeable future” stated Joe Shapira, Spark Network’s
chairman and chief executive officer. Latin America and Australia are also
seen as future growth markets.
Why So Popular?
According to a
Lycos survey of 1,100 people, online dating has become more
mainstream. Some important findings:
59% of users said that in order to meet
someone, they are likely or very likely to join an online dating service,
compared with 29% two years ago.
12% of users would put an ad in the
classifieds section of a local newspaper.
53% of men and 48% of women cite the
convenience of online dating as a reason why they would be likely to join an
online dating service.
More than 80% of both males and females
say that online dating is as safe or safer than
meeting someone at a bar.
How Dating
Websites Operate – What You Get For Your Money
The online dating
services today can be grouped into three categories:
1. free sites,
which make money by carrying advertising, ostensibly to large audiences.
(However, in Marketdata’s opinion, the
advertising revenues are not as high as originally forecast, and few are said
to be making any money.)
2. subscription-based services like
Match.com, which charge a flat fee.
3. transaction-based services, pay per
use.
In the race to establish “critical mass”,
there has been substantial consolidation at the higher end of the market. For
example, Ticketmaster acquired Match.com, Matchnet bought Socialnet, and Udate
acquired Kiss.com. Most recently, MemberWorks acquired Lavalife.
Despite all this growth, a negative image or
stigma still exists for some, when it comes to meeting that special someone
online. To some, it sounds like a risky act of desperation, and remains at
least one level lower than meeting someone in a singles bar. Even when people
do find quality mates online, they frequently will not admit how they found
each other to friends and family.
Seeking a mate online is sort of like posting an
elaborate personal ad rather than submitting to an interview with a
“conventional” dating service (i.e. Great Expectations, Together, etc.). Most
sites let you choose a screen name, post a photo and profile and fill out a
survey about ideal mates, likes and dislikes, hobbies, etc. To initiate
contact with the other subscribers, you’ll pay a fee, usually about $20 per
month.
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