Dating app Tinder was launched in September 2012 across a row of college campuses. It uses Facebook basic data to analyse users and recommends compatible partners based on geographic location and common interests. Swiping right, the app enables users to like another user anonymously or pass on them by swiping left. If two users like each other, they can chat from within the app.
Tinder matches users based on Facebook profile data
The app is available in over 30 languages now and majority owned by InterActiveCorp (IAC). By March 2014, the app had generated one billion matches, 800m swipes and 10m matches per day, as well as 300 marriage proposals. 5% of Australia’s population had a Tinder profile at that point.
During the FIFA World Cup June 2014 in Brazil, the app experienced a 50% increase in downloads and usage in the country. Brazil is Tinder’s third largest user base, following the US and UK.
Key Tinder Statistics
- Tinder is available in over 30 languages worldwide (Source: News.com)
- Majority-owned by InterActiveCorp it generates one billion matches, 800m swipes and 10m matches a day (Source: News.com)
- Subscriber estimates vary between Credit Suisse estimating 100,000 users and Morgan Stanley 297,000 (Source: Techcrunch)
- 24% of Tinder users are paying for online dating services (Source: Global Web Index)
- With the launch of Tinder Plus, Tinder jumped from spot No. 969 to No. 26 in the iOS download charts in March 2015 (Source: AppAnnie)
- JMP Securities predicts Tinder to be worth $1.6bn, with $121m coming from subscriptions alone (Source: BusinessInsider)
“The average Tinder user spends more than one hour a day on Tinder, approximately 77 minutes, and that number is up by nearly 50% in Brazil since the start of the World Cup.”
By September 2014, Barclays predicted the app’s valuation to reach $1.1bn by the end of 2015, now managing more than one billion swipes a day. The bank expected Tinder to reach 20m active users by April 2015 and IAC to start monetising a projected $180m in revenue in 2015.
Chris Merwin, VP at Barclays, confirmed:
“It’s growing very, very fast and the monetization opportunity is enormous. IAC is monetizing daters across all ages across all demographics. They want to create the best portfolio of brands in online personals.”
In addition to Tinder, IAC owns Match, one of the largest dating sites worldwide. The company prides itself on owning a large portfolio of dating sites and apps, as users turn to multiple platforms to find their perfect match. Merwin confirmed that IAC hoped for Tinder users to translate to Match consumers eventually.
An evaluation by Clickz found that Tinder’s massive growth can be attributed to millennials who predominantly use their mobile phones. Within a year, the online dating as a category went from desktop to mobile-dominated.
Online dating increased to 60% on mobile versus 40% using desktops in July 2014
Research by Global Web Index in April 2015 confirms that the 16-34 year-olds are Tinder’s predominant audience with 38% falling into that age group. Tinder has 38% of female users and 62% of male users with more than half of them being single (54%). The app is being used largely in urban locations (76%).
Having suggested that 42% of its users were either married or in a relationship, Tinder rejected the findings by Global Web Index and told The Guardian:
“The results of this tiny, 681 person study in the UK is a totally inaccurate depiction of Tinder’s user base – this firm is making guesses without having any access to real data on our millions of users worldwide (…) The single largest age group on Tinder, making up more than half of our entire user base, is 18-24. More than 93% of UK residents in that age range have never been married, according to the UK’s office of National Statistics. Without revealing any data about our users, simple logic should reveal that it’s essentially impossible for any of these claims to be accurate. Their methodology seems severely and fundamentally flawed.”
Global Web Index confirmed that its data had been based on interviews with 170,000 users worldwide – “it’s not guesswork, and not just the UK, as Tinder has suggested,” a spokesperson said.
By July 2014, Tinder had reached spot three in the top five US dating properties with 3.6m visitors per day, up 1,400% from 2013.
Tinder ranked third among the top 5 US dating sites in July 2014
But Global Web Index finds that Tinder has not yet overtaken traditional dating apps such as Match, with only 1% of global internet users on Tinder last month versus 31% using a traditional online dating site. This could be attributed to Tinder’s reputation as a more “shallow” dating app, compared to traditional sites.
Traditional online dating sites are still preferable to online daters
However, research also found that a quarter of Tinder users are already paying for online dating, compared to one in eight dating site visitors. Translating these users into Tinder Plus customers will be an important next step for the company in the future.
24% of Tinder users are paying for an online dating service
In line with the above findings, 72% of Tinder’s user base is visiting other online dating sites, with mobile phones the most important access devices at 58%, followed by PCs (54%) and tablets (35%).
Tinder users aren’t exclusive to the site, but mobile devices are core access devices
With the launch of Tinder Plus, the company’s subscription model, which offers options such as the ability to undo swipes and Passport, that lets you search for matches beyond your current physical location, the apps rank on research site App Annie, climbed six spots in Google Play’s revenue rank. Having limited the number of right swipes on its free app, Tinder jumped from spot No. 969 to No. 26 in the iOS download charts. The dramatic jump upwards is directly linked to the Tinder Plus app launch. However, it remained in the top 100 iOS apps during March 2015.
Tinder App Annie rank March 2015
According to TechCrunch, subscriber estimates for Tinder Plus vary, with Credit Suisse estimating 100,000 and Morgan Stanley 297,000 users. Subscriptions cost up to $19.99 a month depending on age, a move that has been widely criticised. Tinder confirmed that Q1 2015 was the app’s highest registration quarter to date. In December 2014, IAC confirmed that Tinder had been downloaded 40m times.
Given these strong results, it’s high time, brands start to pay an interest in Tinder. With 85% interested in their appearance and 82% admitting to being brand-engaged, marketers are likely to jump at Tinder when it introduces advertising this year.
Tinder users are brand-engaged and like to inform their friends about new products
In fact, JMP Securities predicts that Tinder would be worth $1.6bn, 20% of IAC’s business, with $121m coming from subscriptions alone. JMP predicts that advertising revenue could generate $70m by 2016. Tinder’s first ad featured a profile of musician Jason Derulo. Users were able to swipe across his profile and receive a message from the star, prompting them to download his new song on iTunes.
JMP adds that the app could reach 58m in active users by 2016, having grown steadily over the last year.
Tinder US reach has grown steadily from 2014 to 2015
Having overhauled its app to include all of the Facebook profile information of its users, Tinder has also added Instagram to its features, allowing users to scroll through a potential match’s Instagram feed to get a better idea of him/her.
Sean Rad, Co-Founder and President of Tinder concludes:
“This is the first of many steps to take the recommendations engine to the next level and help you assess the person you’re matching with and start those conversations. If we can provide our users with more relevant information for each connection, we can take them halfway there in terms of getting a conversation going.”
Predictions for 2015 are good and given its recent expansions, including the introduction of an Android Wear app and soon to follow Apple Watch version, Tinder is set for strong and ongoing growth over the next three years.