(Online Dating Industry Journal) A continued weakening economy could soon have an impact on the online dating services industry. Foreclosures are at a record high, gas prices are near a record high, and tens of thousands of jobs are being lost every month.
If the U.S. economy continues to falter, it could cause more people to stop using paid online dating services and start using free online dating services or drop out of the online dating world all together.
JupiterResearch is estimating that the online dating services industry will grow from $900 million in 2007 to $1.9 billion in 2012. If it is to reach that amount, however, it may have to do so via a roller coaster ride.
In February, the US saw a loss of 63,000 jobs as companies lay off employees during the rough economic times. The average cost of unleaded gasoline is expected to reach $3.75 within the next two weeks. The current cost doesn't yet reflect the record oil prices announced today ($108 per barrel).
In addition, the Euro continues its record growth against the U.S. dollar, making the cost of getting anything overseas (even online) a massive expense for consumers. Consumer borrowing is growing and consumer confidence is near a record low.
Many people give up luxuries as recessions loom. That includes Starbucks coffee, impulse buying, and can even mean online dating... to a degree.
Over the last several years, free online dating sites have grown in popularity. Until now, they haven't affected the revenues of paid online dating services. But as people have less money to spend, we could see free online dating services gaining in popularity and fewer people dishing out for high monthly fees of paid online dating services. And if that's the case, then it is highly unlikely that we'll see revenue numbers topping 2007's $900 million.
To combat the effects, paid online dating services will need to be on their toes with more promotions, increased incentives, and improved relationships with affiliates.
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