Tinder is among world’s most popular dating sites that help users meet new people, boasting of 20 billion matches up to date.
Tinder was founded on 1st of September, 2012 and later launched in October by IAC, the innovation sandbox of Hatch Labs. IAC is Tinder’s parent company that has the largest share of the Tinder organization.
Ever since its launch, the Tinder app has phenomenally done well. By the beginning of 2014, the application boasted of more than approximately 10 million users. Towards the end of that year, there were more than 40 million downloads and 1 billion swipes in a day.
During the company’s earnings call, reports showed that Tinder had 100% annual growth in terms of monthly active users. However, just like so many other things on Tinder, its valuation is among the things that are partly a myth and partly true.
Amid the year 2014, most sources stated that IAC offered to purchase an additional 10 percent of Tinder with $500m. Later on, in just a short time, the story had picked up but Sean Rad, Tinder’s very own CEO cited the reports as “meaningfully wrong”. At the time, the company was being valued at $550 million by Re/Code as shown on Forbes.
Later on, in 2014, stories were going around about an extra $1 billion investment at the company. However, in December the same year, Barry Diller, AIC Chairman/Senior Executive confirmed that the reports about the valuation were irrelevant as the Tinder ‘is not a venture-backed startup’.
Tinder, with its swiping paradigm, has made a big impact as a mobile user app that provides the user with a thrilling experience. At the same time, the app has managed a breakout success in what we could seemingly call a competitive dating space albeit there being cases of sordid management scandals at the organization.
Within this growth case study, we have solely focused on growth hacks that led to the success of the company. We will not have to dive deep into the sexual harassment cases and management scandals, that eventually forced Justin Mateen the co-founder and their CMO to resign not forgetting Whitney Wolfe, an early employee who left for other jobs with seemingly deeper investigative and journalistic chops. However, here is the full story if you want to read more of it.
With that aside, we quickly take a look at how Tinder pulled a startup breakout and absolutely reinvented online dating in a world full of not only popular but also heavily funded services like Plenty of Fish, Match.com, eHarmony among others using just your phone.
In this case study, we will focus on:
1. Initial Traction
- Creation of very addictive application through a gamified user involvement and novel that exploited new social customs for dating
- Built a strong market in terms of demand and supply via collegiate systems
- Driven impact of the network by college-to-college take-offs
2. App Growth and Development
- Press & Word of mouth, which keeps on driving the growth
- External extensions that make the app more accessible to users who are not in the range of single and want to connect
- The app features that upsurge retention and re-engagement
3. International Expansion
5. Company’s Summary of Financial Overwiew
6. Tinder as a Channel
7. The Tinder Effect in Summary
Let us get to know more about Tinder and the way it works. Tinder is an online dating app that designed for mobile that helps matching potential partners via an interaction design and a well-crafted novel interface.
Tinder users through suggestions made by their friend’s or people from the surrounding locale are presented with seemingly potential dates.
Users, after viewing the profile will swipe left or right, dismissing the prospective partner or suggesting an interest in getting to know more of the person, respectively.
If the other user, in this case, the owner of the profile, also swipes right, which happens when they are both using the app, then they are ‘tinderly’ matched. From then they can decide to start a conversation and eventually organize a date.
When a user clicks-open the app (Tinder app), information from shared friends (through Facebook) networks, along with their last location, plus their interests, provide prospective matches.
This means, the more the user interacts with the application, the more the chances of getting a better potential match become.
Photo Credits: Tinder
Unlike many other companies, Tinder is not an old-fashioned online dating startup. In fact, it is sponsored by IAC, the company that also owns Match.com, a mega online dating company.
Tinder evolved from ‘innovation sandbox’ by Hatch Labs that had been launched in March 2011 but closed down in 2013 around February.
In fact, many people tend to think that Tinder is a startup platform and that kind of confusion has seemingly worked to the company’s advantage.
Back in 2013, CEO of IAC, OkCupid, and Match.com, Sam Yagan claimed:
“We keep it sort of on the DL because it’s much sexier for it to be a totally fresh startup that has nothing to do with the market leader. But we’re constantly trying to build new startup-y stuff at Match, and this is a product that we started working on late last year with the team in L.A., and it popped.”
Since the launch, Tinder has not raised any funds out of AIC. In fact, according to TechCrunch, Sam Yagan said, “IAC has been, is and will always be the majority owner of Tinder.”
The status of Tinder as a company has left most people questioning why it looks like it hangs in a kind of mystery. Mythology has conflicted with facts regarding the story of how the owners founded the application.
However, most sources have agreed that those who founded Tinder were initially working at Hatch Labs and had been working on a customer loyalty app by the name Cardify.
It is at that time that Joe Munoz, a professional coder, came up with an earlier version of a dating site(Tinder) when on his weekend codeathon.
Gradually, the team decided to shift their focus fully to the online dating app, which they used to call it Matchbox, and it dawned on them that the name sounded similar to Match.com owned by IAC. Disparity as to who had originally found the name of the app, ‘Tinder’ kicked in.
Whitney Wolfe, the co-founder, and former marketing manager claimed that she provided the name ‘Tinder’ as a small twist on ‘Tender,’ what looked like a too-romantic suggestion by Rad. TechCrunch however, claims that their anonymous sources were not sure but went ahead and listed Munoz, Wolfe, and Badeen as possibilities.
Having said all that, a number of details concerning Tinder tend to be fuzzy but for the numbers, they are very straightforward. As aforementioned, there has been over 40 million downloads and more than 1 billion profile swipes every day and that leaves us with the question of, what has Tinder done to grow so fast within a short period?
1. Creating Supply & Word Of Mouth
Photo Credits: Medium
Market balance is one of the main keys to success in any marketplace. Market balance in simple terms is the availability and readiness of sellers and buyers to take part in business transactions without outnumbering each other.
In any monetary marketplace, there should always be enough demand for sellers and enough supply for buyers. Without any of them, then there is no marketplace.
Some people refer to this as the chicken and egg problem in trying to answer the question – how do you get one without the other?
The easiest way someone can start up a market is by developing the supply sector before anything else. It is easier to build up the seller side of the market.
You can hack it by either offering other incentives to target participation or you can pay up for the supply. This is according articles and talks from Gagan Biyani, Sprig founder and Sangeet Choudary of Platformed.info
In the Tinder world, true buyers or sellers may not exist, but in a most similar dating environment, the supply of women on the channel is what initiates men to participate.
This principle has been used in many other areas like ‘Ladies Night’ promotions that happen at your local bars.
It goes without saying that once you seed your market with enough supply buyers will always avail themselves to participate. Of course, this can also work in reverse but stereotypically, it is done in that fashion.
Tinder realized that kind of strategy and they supply-hacked the platform with many women in the early stage by focusing on sorority ladies as their initial adopters.
It became fun, and more women joined the channel and that in turn triggered a response in men who were eager to download the app and have a look at those girls who were available and close enough (in terms of distance) for potential dates. That move was quite excellent, to say the least.
Most millennials are mobile first and digitally savvy, sororities can offer broad ecosystems and through the word of mouth, the app stretched out to more people making the connection between friends across the whole system more contagious.
The combination of word of mouth and supply seeding was like a spark of fire on gasoline. According to Nick Summers of Businessweek, Munoz said:
“We sent [Wolfe] all over the country. … Her pitch was pretty genius. She would go to the chapters of her sorority, do her presentation, and have all the girls at the meetings install the app. Then she’d go to the corresponding brother fraternity—they’d open the app and see all these cute girls they knew.”
Tinder grew from as little as 5,000 up to around 15,000 users by the time Wolfe came back from her trip, Munoz said. “I thought the avalanche had started.” He added that with the word of mouth through the collegiate networks plus the earlier on supply-side seeding, the strategy was too important to be understated.
Photo Credits: Medium
It helped the application stretch out to a critical mass of people that were indispensable for the network impact to take hold. Even up to today, word of mouth still is an important factor of growth of Tinder.
The platform started garnering fame that even James Parks, the Reality TV producer as well as aspiring comic, met his girlfriend using the application.
During his interview, he claimed that most of her friends were using Tinder and it was not long before she jumped onto the bandwagon and became overly addicted.
Tinder became like a daily activity she would not do without as occasionally, she would leave the bar, go home, eat, lie in bed and then Tinder.
Psychology, business professor, & Vice President of innovation and research, Tomas Chamorro-Premuzic of University College London asserted, “whereas it is still somewhat embarrassing to confess to using EHarmony or Match.com, Tinderers are proud to demo the app at a dinner party”
Contrary to most old-fashioned channels of dating (all online), you can use Tinder in presence of friends as the channel is socially acceptable and you can talk about it and even show off.
For instance, users of EHarmony do it in private but users on Tinder are more likely than not share their activities with their friends.
2. The Network Effect
The number of users as usual is very crucial to the success on all social media platforms. Especially for Tinder, it is possibly even more significant as it is an app developed based on your locality and would not work to capacity with an insufficient amount of possible matches.
In a location of 100 or less of Tinder users, the swiping fun would be so short-lived that the potential matches would be exhausted in one or two sessions.
That said, it is good to note that no matter how engaging or fun the user experience any social media platform is, it is not as useful if it lacks sufficient audience.
In this case, for a dating site like Tinder, lacking potential matches can be of a very big blow. It is at this stage that the collegiate method played a huge focal dual-role in the growth of Tinder.
The collegiate system was not only a rich group of target users that provided the effective supply seeding from but also had an available thick network that increased the amount of users on the channel quickly in a region.
Once a number of the targeted sororities began to use the application, a word of mouth amid the sorority and house network of the same college or campus would then take over and in turn increase the availability and accessibility of prospective matches among the users existing in any given region.
Tinder used the same strategy as Uber, Belly, and Facebook to create market balance but instead of setting their channel based on geographical areas like in the case of Uber, they used a collegiate system to drive network density as well as the fuel supply.
As soon as Tinder gained enough user-bases through the word of mouth, the app’s adoption started to gradually magnify because of the network impact. More users joined the dating platform, and that meant the channel became more popular and in turn, it grew famous.
App Growth & Development
We have discussed much on how crucial role of the word of mouth was to Tinder’s growth, well how about what exactly sparked Tinder’s growth surge?
Well, apart from being just a mere mobile phone and location-based application, Tinder continued with innovations and it leveraged number of fundamental facts about the user’s psychology and experience that made the application more captivating and addictive and at the same time worth talking about.
We all know that a mere mobile application cannot spark much of excitement but Tinder was built in a way that it could have easily caught the eye of anyone who was looking to date.
It is at this stage therefore that we will have to look at some of the mainstream innovations and differences that make the app more addictive, memorable and worth sharing.
1. The User Experience
Photo Credits: Giphy
Tinder stands out among other mobile applications in terms of is how you are able to browse through possible matches with ease. The matches are portrayed on the surface of the interface like a virtual deck of cards, which users swipe through. The user experience pattern has crucial implications for the behavior of the user.
First, the simple act of reviewing, matches by swiping left or right with the aim of dismissing a match or confirming a potential match is quite intuitive and feels so satisfying.
Furthermore, using one hand as you swipe through a number of potential matches lets you go through a number of them in a short time.
Secondly, by showing the information of the match on a virtual card, the app is able to screen real profiles available for more information and bigger pictures.
The kind of visual real estate is not as feasible on a small screen or list format but provides multiple options as you navigate.
2. Gamification Of Dating and Variable Rewards
The variable rewards component is perhaps very important. Since you are not able to see who is next on the match list before you swipe, the desire to swipe in succession becomes powerful.
Most Tinder users tend to ask themselves questions like ‘what if the next card I swipe is my ideal match?’
These kinds of variable rewards are seemingly influential psychological concepts that are mostly used in jackpots/lotteries and gambling and it magically works a bid deal on Tinder just as well.
People would just keep on swiping to try to find out if they could eventually hit that ‘match jackpot’ in case they swiped the next card. In fact, putting in mind that if you have a Tinder account and you log into your account you will be presented with people who have already swiped right for you.
This highlights the point of potential reward even higher as it gives you chance to swipe on people who are already interested in you. You may not know those who interested exactly, but high chances are, that the person you are swiping through at that time thinks that you are interesting and eye-catching.
Tomas Chamoro-Premuzic goes on and urges through an article about Tinder on the Guardian, and said: “Tinder is just the latest example for the sexualization of urban gadgets: it is nomophobia, Facebook-porn and Candy Crush Saga all in one.” Tomas went ahead and claimed that the hook-up is only but an excuse for most users and that the art of Tindering equally substantial to the possible date itself. The aforementioned Jamie Park’s experience agrees with that notion.
People used HotorNOt.com( before it pivoted toward a dating service) for quite a long time to end up rating others without having the payoff of the probable potentials.
Issie Lapowsky of Wired explains gamified and Social Tinder nature and affirms “It’s not uncool to scroll through Tinder with friends, and your non-single friends are all dying to “play” for you. It may be the first dating technology that people in relationships actually wish they needed.”
Mulshine Molly of BetaBeat also described an adventure of a woman by the name Bethany a workmate and Tinder user who downloaded the app due to curiosity when she heard from a friend.
To Bethany, Tinder was just an additional social humdrum activity “After dutifully checking Facebook, Twitter, and Instagram, she’d start swiping. Soon, she was even Tindering at work” Mulshine explains of her friend.
According to Mulshine, Bethany claimed to have fallen in love with the ego boost that came along when she would be matched with a good-looking potential man and have him text her. “When I was on it, I felt a little voyeuristic, a little excited and different. You test the boundaries of what you can and cannot say. I didn’t feel like myself.” Bethany explained during a conversation with Mulshine
With that said, Tinder must have actually crafted a system that is quite powerful. Putting in mind that most online dating platforms promise users to find them true love and in most cases, they end up with an eventual exit from the site, Tinder’s is designed in a way that you will see who is around your locality and could be interested in you.
Even when the user gets a satisfying match or successive dates, the app adventure is gamified in a way that it creates a powerful desire to go back to the platform and check what else is out there that you could be missing out. The variable rewards plus fear of missing out makes Tinder extremely addictive.
3. The Psychology of Tinder: Love at First Sight
Photo Credits: Annecohenwrites
Bethany’s case is common for most Tinder users. As Chamorro-Premuzic says, the platform enables users to accomplish basic social and evolutionary desires.
“Just like Facebook, Twitter, or LinkedIn, Tinder enables people to get along, albeit in a somewhat infantile, sexual, and superficial way. It also enables us to get ahead, nourishing our competitive instincts by testing and maximizing our dating potential. And lastly, Tinder enables users to satisfy their intellectual curiosity: finding out not only about other people’s interests and personality, but what they think of ours.”
Source: The Guardian
Nonetheless, Tomas went ahead and argued that Tinder partly emulates the real world dating, where people make quick judgments basing on visual perception and appearance.
In a lot of ways, Tinder tends to have advantages over other mainstream online dating websites and platforms because it seems a bit more realistic.
The experience is like that of instances when you make an eye contact with somebody from across the street or restaurant and contemplating on whether or not talk to them.
In the real world, it is hard to find out your prospective date’s favorite restaurant or book until they have met but Tinder has made that quite easier. As Rad, Tinder’s CEO explained to Fast:
“We want to create experiences that emulate human behavior. What we do on Tinder is no different than what we already do,” Rad added that, “You see somebody. You start with their face. If you find a connection, you continue to understand, ‘what are our common interests, our social groups?’ You’re trying to create validation. From there, you open a dialog. Where that goes is up to a person.”
Source: First Company
Even Rutger University’s very own anthropologist Helen Fisher agreed and explained it. “There’s a reason they call it ‘love at first sight,’ not love at first conversation, first smell or first joke.” Fisher went ahead and pointed out that in a number of ways, the channel might be a more effective platform to look for a potential match, than having to go physically in a restaurant.
“In New York, when you walk into a bar, there’s no response. The other people there do not know you’ve walked in. You don’t know whether they’re looking for a date. They might all be there with wives who happen to be in the other room.”
Once the prospective matches are displayed on the platform, it is generally very safe for the users to make expectations and assumptions, by contrast. This is because the individual is single very open to the hook-up idea and wants to mingle with new people.
4. Double Opt-In: Softening the Blow of Rejection
The application has a double opt-in feature that has significantly lowered the fear of rejection. Lapowsky explains that,
“Sites like OkCupid and Match.com have never been able to hack the rejection problem. They haven’t simplified the process much, either, still prompting users to fill out those long and antiquated dating surveys. The process is a drag. Rejection is disappointing. And the fact that you’re doing it anyway only plays into the lonely stereotype that the online dating industry has had such a tough time shrugging off.”
There have been abounding scary stories on the old-fashioned online dating websites which branch from the fact the number of men is more than the number of women on the channels and most times ladies are more occasionally overwhelmed with obvious pickup lines from some men that they could have not considered or never imagined to hanging out with.
Apart from that, there is that nerve that as a human you will require when approaching someone that you had never talked to before. Tinder has eliminated with all that.
There are still plenty of awful solicitations and pick-up lines and sometimes the risks of being rejected though but Tinder has lowered that tremendously because users are aware that their matches had initially swiped right for their profiles.
Tinder does not have challenges similar to OKCupid where the women’s inboxes will be filled with so many unwanted solicitations and pick-up lines.
The fact that Tinder removed such kind of slogs makes the platform so enjoyable plus the users are able to unmatch any matches they do not want to give them control to talk to whoever they want.
5. Maximum Potential Matches with Minimal Effort
Many people nowadays are time-deprived and that explains clearly, why lots of people see any reliable dating channel that gets them exposed to many prospective matches in a little period as an improvement. Most people do not have the time to go out there and mingle. Nick, a Tinder user claims:
“You wouldn’t believe how many interesting women are on there. Wildly successful, totally beautiful women just waiting for somebody to ask them out. I’ve been out with Brazilian event planners who are into capoeira, writers, comedians who deal drugs—any combination of people.”
Actually, he perceived the channel as the ultimate dating platform he had ever seen online and describes the on-boarding and signup onto the platform as smooth and ‘painless’.
Tinder has gone ahead and integrated their system with Facebook, and that means photos of users who join using Facebook are readily available and the identity is verified.
Additionally, rather than having to fill a questionnaire that has long multiple pages, users can sign up with a simple tagline.
Once they log into the site, they can start browsing through matches that could seem potential instantly and the user experience, which is a simple swipe left if no or swipe right if yes, makes the adventure even more thrilling.
New users, in a matter of minutes, are able to quickly download the app from appstore and start swiping a few minutes later. The reason is, you do not need to create and or edit profiles and this means there is less work to do for new years who want to join the platform.
During the ‘tindering’ experience, there are more opportunities that you can use to extract value from the service and that is done by holding conversations between the matches.
The ease of creating a Tinder account has its cons and challenges though, which we will look at it later.
6. Externalize the App with New Extensions
There has been an evolution in terms of features ever since its launch back in 2012. The features were developed and added with an aim of improving the app’s user-ability while at the same time trying to achieve monetization.
The features have been outlined below in somehow an order in the year which they were launched.
As of the year 2013 around June, Tinder launched an exciting feature called Matchmaker that was designed with the aim of allowing users to introduce friends regardless of being for romantic/dating or other reasons. As soon as they were introduced, the friends would afterward chat using Tinder.
This feature, which looked simple opened a door for fresh opportunities in the name of growth of Tinder. Before Tinder, users could look for matches by themselves. This kind of restriction had limited the number of users who were presumingly ‘single and searching’ for possible matches to date
However, after MatchMaker was launched Tinder increased the accessibility of the platform to not only single and searching but also those who were dating, committed to a relationship, and even married.
Through Matchmaker the company had created a new feature that gave a chance to those who had not justified the app’s use previously.
In November 2013, Tinder launched Lists. Alexa Tsotsis, editor at TechCrunch describes the list like “the first product iteration towards a ‘for all’ use case.”
The feature lets people using Tinder to sort matches into categories using criteria they like for example. ‘’Paris friends’ to mean matches located in Paris or “people who like novels’ for people who would like in this context, reading novels.
The app update also included support for up to 24 languages. That exemplified the application’s move toward a larger use and as Rad asserted recently, the team is on course to create a feature that will automatically create a dynamic list using Tinder’s relevant algorithm interests, location, and user preferences.
Launched in June of 2014, the app allows users on Tinder to share enhanced and edited photographs with their matches. The feature also used by Instagram and Snapchat not only changed the way people used Tinder but also acted a new system structure for repeated interactions and at the same time retaining Tinder users.
Moments gave the users a chance to intermingle with prospective matches in a newly designed way and at the same time e-engaging old matches who may have forgotten about their mingling experience and eventually reigniting old moments through conversations.
Rad asserts us through TechCruch that “It’s about sharing these moments, and just because you match, doesn’t mean you need to date that person; you could match with a friend who you want to share a moment with.”
All the user needs to do is simply use Tinder to take a photo that was to be displayed for view in the subsequent 24 hours or so. With that, matches can then like by swiping right or nope by swiping left on the moments.
Alongside moments, users can still turn off the discover mode and that allows them to mingle with available matches and opt out if they do not want to be discovered and or paired with other matches who just joined the channel. Additionally, Rad also promised that there will be a new feature released soon that could “solidify that Tinder is not just about dating.”
By 11th of November 2015, moments retired and just a month before there was the birth of Super Like.
d. Super Like
Photo Credits: Business Insider
The Super like feature was launched globally in 2015 October. The feature allows users who do not have Tinder plus to ‘super-like’ only one profile within 24 hours for free. Users who have Tinder Plus have 5 Super Likes on a daily basis. For Super Likes, users swipe up instead of right.
The application will then notify the user that they had been Superliked by showing a blue border that surrounds the profile of the users who Super Liked their profiles.
The user will now decide if to swipe left or right on the profiles that ‘super liked’ them. This feature has increased the chances of getting a potential match by 3 times.
Photo Credits: Baazar
In 2016 September, Tinder decided to invest in Vina. Vina is a network where women can meet and begin new friendships.
f. Tinder Boost
Photo Credits: TechCruch
Having been tested in 2016 September in Australia, the feature was launched globally in 2016 of October. The feature allows the user to have a complete and top profile in a short time, as little as 30 minutes.
Tinder Boost users receive up to 10 times the number of views on their profiles when they boost. Users of Tinder Plus only get a single free Boost monthly. The feature has a similarity with the premium version of OKCupid
g. Tinder Online
Photo Credits: TechCrunch
In 2017 March, Tinder then came up with Tinder Online. The feature is a web-optimized service of Tinder app that lets people access the channel from the desktops and laptops. Before, it was only available in Colombia, Brazil, Argentina, Sweden, Indonesia, Mexico, and Italy.
The feature though did not include the Tinder special features like Tinder Boost or Super likes. Later on, in 2017 September, Tinder online was launched worldwide.
h. Tinder Gold
Photo Credits: Engadget
Tinder gold is a feature that was introduced in August 2017 all over the world. It is a premium subscription though and allows users to see the matches who have already liked them before swiping.
Aside from that, with this feature you can get one boost monthly, unlimited likes, a passport, more profile controls and 5 daily Super Likes
i. Instagram Integration
Photo Credits: TechCruch
Tinder users get access to the Instagram profiles of the matches and they are able to view their Instagram feeds before they can decide to swipe left or right for them.
If you link your Tinder account to Instagram it will display up to 34 images you recently uploaded on Instagram.
After Tinder did well in the US, the platform was finally launched on android, which represented a push to grow it internationally. According to Mateen, he says
“We have been experiencing an unbelievable growth trajectory in the U.S., and have managed to reach a significant chunk of iPhone users within our target market. As we shift our focus to international growth, it only makes sense to launch Tinder for Android, which owns nearly 70% of the smartphone market overseas.”
As by the year 2013 around November, main global marketplaces for Tinder were in the UK and Brazil. The two markets grew at an average rate of 2%, each having more than 1 million users for the preceding couple of months.
Tinder CEO, Rad claimed that once the organization realized a constant natural adoption of the app in any new target market, they would go on and expand the progress by the aid of ‘borderline celebs’ who we all know have a broad impact in terms of network.
The company would then essentially stretch out and power user’s social networks and eventually getting them on board while promoting their presence on the app.
A number of athletes like Olympic and minor celebs like Miss America have been seen using the application in the press and that has really driven a buzz in the name of further growth in users
That marketing strategy was implemented in the USA and already working toward a good direction and the Tinder team managed to replicate the same in universal markets successfully.
For instance, Tinder was tested with ads on Facebook and they realized that growth stopped at 25,000 users or so, in Turkey. Matten told Forbes, “The quality of users was completely different. The growth there was horrendous compared to anywhere else.”
However, later when they deployed the ‘borderline celeb’ marketing strategy, there was a notable rise in growth in Turkey as well.
In 2015 February, Tinder was ranked among the best 100 general applications in more than 20 countries for Android and more than 44 countries for iOS according to App Annie.
Moreover, when ranking android application in the category of lifestyle, Tinder was ranked in the top 5 in a group of less than 35 countries, top 10 for a group of 41 countries and top 100 for 62 countries.
For the iOS, in the category of lifestyle applications, the app ranked top 5 for more than 50 countries, top 10 for more than 80 countries and top 100 for more than 130 countries.
Tinder was ranked 1st in the UK, Belgium, united states, Hungary, Philippines, France the US and Chile in the Android Lifestyle app. For iOS lifestyle app, tinder ranked first in Latvia, Finland Malta, Brazil, Sweden Iceland, Lithuania, Estonia, and. Belgium
In 2018, Tinder has ranked as best dating app from a list compiled by DigitalTrends beating other popular dating sites like OkCupid, Bumble, and Coffee Meets Bagel.
Moreover, as of 6th of August 2018, Match Group announced that the channel had more than 3.5 million paid subscriptions. That was an increase of 81% since the previous year 2017.
In 2013, Rad in an interview with Tsostis, Rad said, “We would never add a paywall to the core value, we want that to always remain free.” Actually, all the co-founders had asserted that it was very clear “confident monetization won’t come in the form of ads.”
The company has considered a number of potential monetization methods, however. There have been in-built app purchases that include charging users just in case they needed to back-swipe, if they had by mistake swiped left.
That feature was launched on the 2nd of March 2015. Nonetheless, Advancers.org Charlie Dewitte shared an ad that showed Tinder had been matched with actors from Mindy Project in January 2014.
Photo Credits: Advancers
On contrary to what Rad had claimed that Tinder would continuously remain free, the company announced a launch of TinderPlus in 2015 March 2nd.
Tinder plus was a plan to be paid for that has ranging price tags basing on the location your age, and possibly your gender. Many Tinder users are charged $9.99 monthly but for those aged 30 years and over they charged $19.99 in a month.
Just like every other thing on tinder, there is murkiness in how they have placed their price models.
According to Quartz, the company claimed, “Lots of products offer differentiated price tiers by age like Spotify does for students, for example. Tinder is no different; during our testing we’ve learned, not surprisingly, that younger users are just as excited about TinderPlus, but are more budget constrained, and need a lower price to pull the trigger.”
The service, however, was set to be that direct, and any user would have the product though. The paid service enables the user to:
- Revert on the former match you might have swiped left on accidentally. This feature is the one that most users demanded to be updated
- Own a passport that allows the user search for matches anywhere instead of having to stick in their locality or geographical location
- Have an advert free app, which meant that there are more native ads in the free service of the app that such as the Mindy Project
Photo Credits: TechCrunch
By April in the year 2015, users on Tinder had swiped 1.6 billion profiles and made over 26 million matches daily. As we talk, over 8 billion matches have been made since the launch of Tinder in 2012.
The Company’s Summary of Financial Overview
In 2014 march, IAC increased their stake in Tinder as by Reuters reports.. The move caused a stir and speculations that Tinder’s value was at multi-billion dollars. The bank of America valued Tinder at around $1.35 billion basing on the user base, which was then 50 million. That was back in July 2015 as by reports from BusinessInsider
Since then the platform’s monetization has come through additional in-app purchases that are meant for more functions. As we talk, the channel boasts of over 3.5 million paid subscriptions.
There are several financial statements posted by Match Group all over the internet and it easy to access them.
Tinder As a Channel
It is not a surprise that many companies have taken advantage of the growth and hype of Tinder. Some companies shamefully tend to grow their own platforms by creating fake profiles and Tinder bots.
Pseudo Tinder Accounts
In 2013 around July, Symantec, a security company reported an adult spam webcam on the Tinder channel. Once the users were matched with that fake account, they would then be asked to join a session on webcam through an exterior site.
While on the website, they (the users) would then be inquired with a prompt to input their credit card number in the name of verifying their age.
Photo Credits: Symantec
Just after the Symantec’s report, Tinder made extra efforts to curb the spammers by including a feature that reported suspicious malicious accounts. Nonetheless, there have been reports of scam users on Tinder bots up to date.
In 2014, April, Sarah Perez of TechCrunch reported spambots that used the same kind of external links and pre-scripted chats that aimed at luring Tinder users to get mobile applications like CastleClash from the Appstore.
Photo Credits: Symantec
As if that is not all, the newest recurring spambots on Tinder are pseudo prostitution accounts that contain provocative images plus overlaid texts that incorporates terms used in online prostitution ads and contain URLs in which users could supposedly connect with.
Photo Credits: Symantec
Suppose a user clicks on the URLs on the malicious profile, they are re-directed to explicit personal sites that have been designed for hookups and dating.
By use of URLs, prostitution terms and prices in an overlay of text instead of the designated bio section, the spam accounts ensures that the bots make Tinder not to find out that they are fake.
Whether app, webcam, or private site, the spambots are just but a part of affiliate fraudster programs that receive returns from the ability to convert unsuspicious users on all social networks into prospective leads.
“While we do not have insight into the conversion of leads and premium memberships, we do have some statistics about click rates for some campaigns. For instance, from the end of January 2014 until mid-April 2014, a campaign associated with a site called blamcams resulted in nearly half a million clicks across seven URLs. Depending on the offers given by the affiliate program and the number of successful conversions of leads, this particular spammer likely earned quite a bit of money.”
The Tinder Effect in Summary
1. Hooking up on the platform is more arousing compared to actual hookups – Tinder does not only gamify the whole dating process but in other words, sexualizes it. It goes beyond getting a date with someone.
2. Provision of digital eligibility that surpasses physical one – Most data used for profiles of Tinder users are imported from Facebook. The data from Facebook is sophisticated and calculated and makes Tinder attract more people.
3. Social needs and evolution – Tinder has granted people a platform to keep in touch and the social needs of people are what drives the channel. People can now know what others think of them and there is competition between them.
There has been barely any information about the algorithm Tinder uses to match people yet few sources have disclosed that they have a system related to the Elo rating system.
4. Tinder emulates the real-world dating – Tinder as a system is all about the user making quick choices basing on what they see on the virtual cards to be swiped.
This is the same case in real life as because tend to do the same when they meet potential dates for the first time.
5. Romanticism barely exists in real life, except in retail – Tinder tends to match soulmates rationally and efficiently and ensures a quick new relationship for them but does not guarantee that the relationship will be long-term.
Wrapping It Up
Photo Credits: Twitter
In 2018, a tweet by Jeff Morris, Director of the Product the application will try new location-tracking options that functions like Happn. Perhaps from the inspiration of Bumble, another dating app Tinder is also on the course to create a ‘message first’ feature that allows women to initiate start conversation. Both the updates will be opt-in.
Additionally, there are efforts to expand Tinder to a more of social network for the young generation who are single instead of having to focus solely on matching people and creating relationships. There are also plans to create a better connection between people who have the same life goals.
All said, it means that Tinder is not stopping at where it is right now. The Tinder team is still working hard to make sure there the company continues to grow.
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