The Online Dating Market in the UK 2013-2014

THE
ONLINE DATING MARKET
IN THE UK
2013-2014
Current trends and developments in the online dating industry:
users – service providers – revenues – technologies
THE ONLINE DATING MARKET IN THE UK 2013–2014
2
Online Dating in the UK 2014: increase in the number of users,
decrease in revenue
After a decade (2002-2012) of continuous upward development in the UK online dating
market, two opposing trends are currently causing unrest for some in the industry for
2013/2014: On one side, new user groups have started using online dating, and, on the
other, there has been a decrease in revenue.
In our third market analysis publication, you will find the most important and current trends regarding online dating in the UK.
1. SINGLES ON THE INTERNET
Of the approximately 63.8 million people living in the UK, about 17.1
million held the status of “single” at one time or another in 2013. However, it is difficult to clearly define the term “single”. For example, is a
72-year-old still single? Of these singles, approximately 16 million are
regularly using the Internet and are the main target group for the industry. It is estimated once again that around 25% of this group (particularly men) are actually in a relationship.
2. ONLINE DATING LANDSCAPE
Essentially, online dating service providers can be categorized into five
groups:
»»Social Dating
Predominately “flirt” services for mobile devices targeting the
younger demographic, lower price segment (freemium model)
Top-3: Badoo, Skout, Tinder
Keyword “Mobile Dating“
The difference between online dating und mobile dating
has become non-existent in our eyes. The established
online dating players of course now offer mobile version of
their sites and an additional mobile app. And most of the
former “mobile only” dating service providers now have
added a website, because the customer now expects that
the service provider of their choice is available to them at
all times and across all platforms.
Additionally, a separate calculation of revenue via mobile
devices makes little sense since a majority of users jump
back and forth between “online” and “mobile” from first
use to purchase: Over 50% of all logins are through mobile
devices today, but over 75% of all revenue continues to be
collected using the PC.
Therefore, we have grouped both varieties under the term
“online dating”.
»»Online Personals
Mainstream services for searching through personals by oneself, most often
includes a chat feature, middle price segment
Top-3: Match.com, PoF.com, Zoosk
»»Matchmaking
Matching of couples based on a psychological matching process, higher
price segment
Top-3: eHarmony.com, EliteSingles.co.uk, MatchAffinity.com
»»Adult-Dating
Dating websites for erotic contact (hook-ups, infidelity, swinger, fetish)
Top-3: AshleyMadison.com, AdultFriendFinder.com, BeNaughty.com
»»Niche Dating
Specialized for target audiences like seniors, single parents, plus-sized,
alternative lifestyles...
There are over 1,500 of these websites in the UK, however, most are small online personals
sites. In any case, only about 25 service providers have over 100,000 active monthly members. Foreign, in particular American, players currently dominate the market. Among the
domestic dating companies which stand out are Cupid PLC, Badoo und WhiteLabelDating.
163,6
113,0
54,4
113,0
138,1
82,6
THE ONLINE DATING MARKET IN THE UK 2013–2014
3
44,8
20,6
21,5
98,3
88,7
21,5
13,8
79,7
9,7
3,5 70,2
79,7
61,0
61,0
54,4
3. ONLINE DATING USER: AN UPWARD CURVE
54,4
45,3
9,7
3,5
45,3
33,1
9,7
3,5
13,8
4,6
20,6
2,60
6,2
2,50
7,2
2,30
7,1
7,0
6,9
7,3
6,9
1,60
7,0
6,9
6,9
9,7
1,50
3,5
0,65
13,8
7,1
7,2
6,2
4,6
7,0
7,3
6,9
6,9
Revenue per inhabitant in GBP
6,2
7,2
7,1
7,0
6,9
202,8
188,9
179,5
7,3
6,9
0,55
202,8
188,9
13,8
4,6
185,8
21,5
188,9
179,5
In addition, there are a further 2.9 million monthly users in the
“Adult Dating” category as well as about 400,000 users of gay
dating services.
113,0
163,6
82,6
1,60
82,6
138,1
202,8
113,0
44,8
0,25
27,42004
% 2005 2006 2007 2008 2009 2010 2011
2003
CH NO UK DK SE DE NL AT FR IT ES PT
44,8
113,0
3,60
82,6
4. REVENUE DEVELOPMENT: FIGURES DECREASING SLIGHTLY
1,50163,6
21,5
138,1
21,5
29,3%
3,50
2,8
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
179,5
113,0
1,60
82,6
0,65
2003 2004
2005
10,82006
% 2007 20080,552009 2010 2011
163,6
138,1
188,9
138,1
44,8
179,5
202,8
163,6
0,25
187,5
7,3
20,6 2005 2006 2007 2008 2009 2010 2011
2003 2004
20,6
1,85
1,60
7,1
2003 2004 2005 2006 2007 2008 2009 2010 2011
33,1
8,1
7,7
45,3
7,2
6,2 33,1
4,6
The Internet dating boom in the UK started in the year 2000. At
that time, there were around 100,000 profiles of singles on the
2,90
2,90
2,60
2,50
net. Currently, there are2003around
7.12007
million
online
2,30
2004 2005 2006
2008 2009singles
2010 2011 2012
2013 every
month looking for a partner, considerably more than in 2011
(6.3
2003 2004 2005 2006 2007 2008 2009 2010 2011
1,85
million). The fresh influx of users is generated mainly by the new
generation of social dating services like Tinder and Badoo, which
have managed to tap into
younger
CH the
NO UK
DK SE DEtarget
NL ATaudience
FR IT ES of
PT the 18+
dater and singles with an immigrant background.
2,90
61,0
54,4
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
70,2
2003 2004 2005 2006 2007 2008 2009 2010
2011 2012 2013
2,90
33,1
44,8
82,6
79,7
70,2
45,3
44,8
2,50
2,10
2,00
1,90
21,5
% 2011
2003 2004 2005 2006 2007 2008 13,4
2009 2010
Despite the significant increase in the number of users, revenue for the industry, which is
19,1%
currently at 158.7 million GBP for 2013, is less than the level of 2011 (168.5 million GBP).
3,60
3,50
2,8
2,50
2,90
2,90
This can be mostly attributed to:
2,60
2,50
2,10
2,00
1,90
0,85
0,80
2,30
0,45
1,85
3,60
»»The typical users of “online personals” are moving over to the cheaper social
1,60
1,60
1,50
3,50
2,8
Mitglieder Umsatz 2011
dating players.
Match.com
0,65
> 50 Mio.
2,50
2,10
2,00
0,85
0,80
CH UK SE DE NL AT FR ES
IT
PT
0,45
1,90
0,55
~300 Mio. Euro
CH UK SE DE NL AT FR ES
»»The monetization of members is becoming increas-
IT
PT
Market Shares (users)
Deutsche
Ausländische
CH
NOtoUKimproved
DK SE> 130
DE consumer
NL AT ~100
FR ITMio.
ESEuro
PT
Badoo
Mio.
ingly difficult due
protection
Portale
Portale
20 %
regulations and more mature customers.
80 %
20 %
10,8
%
Meetic
> 40 Mio. 178 Mio. Euro
Deutsche
Ausländische
ES IT PT
Portale
»»The increasinglyParship
critical reporting on “grey areas”CH
in UK SE DE NL AT FR Portale
20 %
> 10 Mio. ~40 Mio. Euro
27,4
80
%%
20 %
online dating (e.g. actors, romance scams, subscription
80 %
cases).
29,3%
Deutsche
Ausländische
Mitglieder
Umsatz 2011
The overall situation should not obscure the fact that the UK
still
Portale
Portale
80 %
20
%
13,4
%
plays in the first division, and, moreover, certain providers80 have
%
20 %
still been able to achieve amazingly high revenue growth over
Match.com
> 5019,1
Mio.% ~300 Mio. Euro
the past two years.
Mitglieder Umsatz 2011
0,25
0,85
0,80
0,45
10,8
10,2
8,5
7,3
5,6
1,8
7
1,1
5,7
6,3
2,6
10,4
9,6
39,5
16,6
47,7
5. INDUSTRY TRENDS 2013/2014
44,3
57,5
10,2
44,5
9,7
41,9
88,3
77,3
62,0
72,6
55,6
47,0
53,1
66,5
10,1
43,2
31,5
22,8
79,2
26,1
12,8
36,6
75,8
71,1
80 %
Badoo
67,0
37,8
23,6
Mitglieder Umsatz 2011
8,5
1,9
4,2
11,6
2003 due
2004 2005
2008 2009“social”
2010 2011 2012
Despite all of the changes
to2006
the2007
factors
and2013
“mobile”,
Match.com
> 50 Mio. ~300
Mio. Eurothe highthe market is still dominated
by the established
players:
priced quality providers in the area of “serious” online dating,
Badoo
> 130 Mio. ~100 Mio. Euro
because, above all, singles over 30 are happy to pay. The “big
five” in the industry together
of the total
Meetic account
> 40 for
Mio. over
17860%
Mio. Euro
Match.com
revenue.
Parship
> 10 Mio.
~40 Mio. Euro
The new social dating players as well as the flirt appsBadoo
such
as Tinder have so far succeeded to acquire a great reach rather
Meetic
quickly and cheaply thanks to primarily Facebook and the app
stores. Now, they have to prove that they can stabilize this growth
Parship
long term.
10,8
10,2
8,5
7,3
5,6
2,6
10,4
16,6
47,7
36,6
62,0
72,6
Parship
~100 Mio. Euro
9,7
41,9
88,3
77,3
53,1
> 10 Mio.
~40 Mio. Euro
27,9%
10,8
10,1
43,2
10,2
> 40 Mio.
178 Mio. Euro
> 10 Mio.
~405,6Mio.16,6
Euro
23,97,3%
10,2
44,5
~100 Mio. Euro
Match.com
> 130 Mio.
31,5
22,8
> 130 Mio.
> 50 Mio. ~300 Mio. Euro
Mitglieder Umsatz 2011
Market Shares (revenues)
Meetic
>Badoo
40 Mio. >178
Mio. Euro
130 Mio.
~100 Mio. Euro
Match.com
> 50 Mio. ~300 Mio. Euro
Meetic 7,9% > 40 Mio. 178 Mio. Euro
Parship
~40
Badoo> 10 Mio.> 130 Mio.
Mio. Euro
10,8Mio.
%~100Euro
Mitglieder Umsatz 2011
Parship
> 10 Mio. ~40 Mio. Euro
Meetic
178 Mio. Euro
29,5
% Euro > 40 Mio.
> 50 Mio. ~300
Mio.
23,2
71,1
1,8
7
2,6
10,4
9,6
39,5
47,7
1,1
5,7
6,3
66,5
1,8
8,5
10,87
8,5
31,5
22,8
1,853,1
7
12,8
36,6
10,2
44,5
8,5
7,3
5,6
16,6
2,662,0
10,4 72,6
9,6
39,5
26,1
7,3
5,6
44,3
10,4
16,6
57,5
47,7
8,5
9,7
10,110,8
41,910,2 43,236,6
22,8
31,5
79,2
44,5
31,5
88,3 53,1 77,3
10,2
22,8
66,5
10,2
62,0
10,8
36,6
75,8
62,0
72,6
10,2
72,6
44,5
88,3
71,1
68,9
88,3
58,1
26,1
The former midsection has a quite difficult task trying to continue
75,8
67,0
12,8
57,5
Social Dating 55,6 47,0 37,8
1,1
to exist between these fronts. The specialized ones still have a good chance
as
long
as
44,3
5,7
Personals
23,2
2003 2004Online
2005 2006
2007 2008 2009 23,6
2010 2011
6,3
they are not confined to one country.
Matchmaking
1,8
7
1,1
5,7
6,3
8,5
9,6
39,5
79,2
26,1
12,8
44,3
57,5
66,5
75,8
67,0
55,6
47,0
37,8
23,2
23,6
1,9
4,2
11,6
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2,6
1,8
7
1,1
5,7
6,3
9,6
8,5
8,5
7,3
5,6
16,6
44,3
8,5
62,0
12,8
36,6
23,2
9,6
10,2
26,1
44,5
44,3
23,2
72,6
88,3
39,5
79,2
57,5
10,4
47,7
53,1
Adult
7,9%
39,5
79,2
57,5
66,5
75,8
68,9
58,1
23,2
29,5%
2003 2004 2005 2006 2007 2008 2009 201045,8
2011 %
8,5
47,7
53,1
75,8
66,5
68,9
58,1
1,9
Dating
4,2
11,6
Niche
2003 2004 2005 2003
2006 2004
20072005
2008
2009Dating
2010
2011
2012
2006
2007
2008
2009
20102013
2011
26,1
12,8
22,8
10,2
1,1
5,7
31,5
6,3
2,679,2
ElitePartner,
eDarling, Parship,
FriendScout24:
ElitePartner,
54,2 %eDarling, Parship,54,2 %
FriendScout24:
10,8%
THE ONLINE DATING MARKET IN THE UK 2013–2014
4
Behind this study:
leadingdatingsites.co.uk
ABOUT THE STUDY
This study „The Online Dating Market in the UK 2013-2014“ is part of a
yearly up-to-date analysis on online dating in Europe. This study, first
conducted in 2004, has established itself as the only serious market examination in the industry. The figures are based on market research, Internet traffic
analysis and above all, direct discussions with executives from the leading
service providers.
ABOUT LEADINGDATINGSITES.CO.UK
LeadingDatingSites.co.uk is a free online portal focused on providing:
»»Review and evaluation of online dating sites
»»Advice for beginners and experienced online daters
Since 2008, more than 250,000 singles from the UK have used this portal as
their gateway to memberships in their desired online dating site. Recommendations, interviews, or test report claims have been published in over 100
press, TV and radio outlets.
leadingdatingsites.co.uk
singleboersen-vergleich.ch
singleboersen-vergleich.de
singleboersen-vergleich.at
guide-sites-rencontres.fr
ABOUT METAFLAKE
Based in Cologne, Germany, the metaflake network has 12 fulltime employees
and currently operates online dating review websites in 14 countries.
guida-incontri.it
sitios-encuentros.es
dejting-experten.se
nettdating-eksperten.no
netdating-eksperter.dk
datingsitesreviewed.com
sites-encontros.com.pt
central-encontros.com.br
datingsitesreviews.com.au
WWW.LEADINGDATINGSITES.CO.UK
For more information, please
contact:
Henning Wiechers
metaflake
metaflake
Riehler Str. 21
D-50668 Cologne, Germany
Tel: +49 (221) 130 87 10
[email protected]