(Online Dating Industry Journal) Advertising Age has just published a story (only available to paid subscribers) about singles "flocking" to social networking sites and away from online dating services.
Research shows that social networking sites, like MySpace are pulling about 2% of consumers away from subscription-based online dating services, like Match.com. The percentage increases when you throw in popular free online dating services like PlentyOfFish.com and OKcupid.
Keynote research has also shown that there is a low satisfaction rate amongst online daters when it comes to subscription-based online dating services. In an "Inside the Online Dating Industry" column titled, "Online Dating Industry Concerns and Solutions" it is pointed out that high prices, poor customer service, and automatic rebilling are contributing factors to the increased dissatisfaction.
Joe's Comments:
When users are dissatisfied with online dating services, they look elsewhere to fill their needs. Social networking sites are increasingly pulling more people away. Sure, the industry should continue to grow (especially with $150 million+ spent each year to promote online dating services), but the percentage of "defectors" will likely increase until online dating services do more to address the satisfaction rate. Take search engine leader Google for example. From the start they focused on the consumer. From banning pop-up ads to listening to the consumer, they are a shining example of what happens when you put the customer first. Google doesn't have to spend millions in advertising. They rule because consumers made them king. Consumers made them king because Google treated them like kings. Overall, the online dating industry has failed consumers and the rate of dissatisfaction is at an all time high. Most major online dating services put the business first then have to spend millions to retain that business. I recommend that some of these services take a course on Google Empire 101 - never forget the consumer.
I think the Advertising Age article is a little over-the-top with the impact, but nonetheless, this is not a story that the industry should ignore. There is some truth in it.
How much of this is due simply to the "trendy" aspect of online dating waning a little? Those who were less serious to begin with have moved on, perhaps to social networking(?).
Anyone leaving a paid site to go to a "free" one was never serious to begin with, IMHO. You could never count on their financial support. So, that hardly qualifies as "losing business".
We can't relate to people leaving us; our sales are up 20% year-to-date compared to 2005. New trial numbers are up, also, but our ad spending is way *down* relatively speaking (try figuring that one out!).
Perhaps we are doing a better job of retaining and growing our base. Customer service has always been a key focus. And, high prices can't be to blame; we have the highest prices of anyone in our space (always have) - at least - on the shorter-term memberships. Longer-term ones have always been a super deal ($89.95 for a year right now - and we are selling a ton of those).
Posted by: Sam Moorcroft, ChristianCafe.com | April 18, 2006 at 11:01 PM
Its still really early days of "free online dating". According to hitwise and http://ranking.websearch.com/SiteInfo.aspx?url=okcupid.com Plentyoffish.com is 10 times bigger then okcupid which is the #2 free site.
Okcupid is closing a large round of venture Capitol soon as reported here
http://www.archivesat.com/FreeBSD_Related_Jobs_offered_and_sought/thread286056.htm
As has happened before in other markets the free sites are going to capture huge marketshare. Once the major free sites are established the niche sites will come under attack from small focused dating sites.
Posted by: markus | April 19, 2006 at 01:59 PM
Marcus,
If Okcupid is closing a large round of VC funding, and they are 1/10th your size, what are you waiting for?
Posted by: Sam Moorcroft, ChristianCafe.com | April 20, 2006 at 12:56 PM