[ad_1]
It may be Valentine’s Day here in the US, but the dating app market isn’t looking as promising as before. according to a new Analysis According to app intelligence provider data.ai, global downloads of dating apps saw only slow growth year-on-year as of this January – reaching 128 million installs with a modest increase of just 1.9%, compared to 29 million seen during the same period. % increase compared to the previous year. In the US, growth has also slowed, with 2.38% year-over-year growth by January 2024, down from the nearly 16% growth seen in January 2023, reaching about 12.7 million installs.
While data.ai likes to portray any growth as a positive sign for the industry, there are other signs that the market is losing momentum.
Image Credit: data.ai
Dating app giant Match Group, which operates Match, Tinder, Hinge, OkCupid and others, grew its total number of paying customers 5% year-over-year, according to its fourth-quarter earnings report in January. A decline has been registered. Last quarter, the company reported a 6% decline in paying customers for its flagship app Tinder. causing the stock to fall,
Tinder’s paying subscriber growth also slowed again last quarter, falling 8% year-over-year to 10 million paying subscribers, the company said in its shareholder letter.
Although Match Group still beat estimates for fourth-quarter earnings and revenue – which rose 10% year-over-year to $866.23 million – it became increasingly clear that the company has learned that less How to extract more dollars from the paying user base. In this case: Tinder launches Membership is ridiculously expensive at $500 per month Last fall it launched something called Tinder Select, which promised to match customers with the “most sought-after” profiles — an idea it picked up from its blog. 2022 acquisition High-end dating app The League.
One of the largest dating apps in the US market, Only three in 10 adults reported According to a Pew Research report last year, ever using a dating site or app. that figure is the same as before 2019, The firm said.
Meanwhile, although one in 10 American adults Given that they met their partners on a dating app or website, the widespread success of dating apps on that front is questionable.
A Recent analysis of US Census Bureau data found that a record number of 40-year-olds (one fourth) have never married, up from only 6% in 1980. Arguably, this reflects other factors – including acceptance of unmarried partners living together and the inclusion of same-sex couples in marriage data. still given There are 44% dating app users in America He said he turned to dating apps to find a long-term partner, as opposed to wanting more casual relationships, as it is unclear what results today’s apps are capable of delivering.
Additionally, a new report from data.ai shows that Tinder’s grip on the US dating app market appears to be slipping slightly. As of last month, it had the largest market share of any other dating app at 29.3%, but that’s down from 29.8% a year ago.
Image Credit: data.ai
According to the company, Tinder has received a total of 530 million downloads to date on its websiteBut Match also acknowledged in Q4 that Tinder’s US and global daily new users declined by mid-single digits year-over-year, in addition to a decline in its paying subscribers.
Meanwhile, Bumble’s share declined from 17.6% to 14.3% year-over-year. data.ai foundComing second.
The “other” category of dating apps, which includes smaller companies and startups experimenting with new models, grew from 27.4% market share in January 2023 to 29.2% in January 2024. It seems that among dating app users, there is a growing desire to try something new.
Of course, things may still change. match Said It will now focus on AI to improve the dating app experience, including areas like photo pickers, matching capabilities, and post-match guidance by enhancing features like initiating conversations and nudges with AI.
This is based on that news increasing number of people People are turning to AI tools like ChatGPT to help with their dating app chats. AI dating tool Riz went viral and saw a surge in downloads in the months that followed Washington Post article, According to data from app intelligence provider appfigureFor example, Rize has been downloaded more than 2.24 million times in the last year.
Whether AI can drive more people back to dating apps, of course, remains to be seen, given that it will also likely lead to more AI-powered romance scams and other malicious activities, security firm McAfee said. Recently warned,
However, this does not mean that the market is not ready for investment. In addition to the AI-driven changes, Match proves that dating apps can still yield big bucks when properly monetized. Data.ai notes that dating apps generate Record $505 million In January 2024, year-on-year revenue growth slowed to 8% from 17% last year.
[ad_2]
Thanks For Reading