How Do Dating Apps Make Money?

Everything happens online these days– shopping, stock market investments, and even human interaction. So, why not dating? That's where these nifty dating apps come in with their unconventional and entertaining marketing strategies.

Take their ads, for example: They're everywhere. Whether you're enjoying your playlist of top romantic songs on Spotify or doom-scrolling "me and who" memes on Instagram, the strategic ad placement in between can't be a coincidence, can it?

Now that the ads have sparked something, you must be wondering, "Let's give online dating a shot". All that’s needed are a few swipes, some matches, thodi bohot chatting, dating and maybe even ending up falling in love. Simple, right? What if I say it's not?

And you might agree with me because you might have seen this in real life. We all know that one friend who’s single despite having 5 dating apps installed on their phone. You probably don’t take them seriously when it comes to relationship advice. It doesn’t necessarily mean that they have zero rizz.

However, the dating apps that they're using do have something to do with it. These apps are keeping them single 🫣. Your friends, you, and many people are simply pawns in a game of numbers and profit. Allow me to elaborate.

The Big Numbers: Behind the Scenes of Online Dating Market

Five years ago, roughly 2 crore Indians used dating apps. In 2023, this number jumped to 8.24 crore, showing an over 300% rise. As per a report by data.ai Intelligence, India has emerged as the 5th fastest-growing market in dating apps, with spending increasing by $31 million (~₹256.494 crores) in 2022 compared to the previous year.

It would be safe to say that dating app companies are making a fortune by simply capitalising on human desire. I mean, just look at the numbers. 

• The turnover of the online dating segment in India was $454 million (over 3,350 crore) in 2021 which by the end of 2024 is expected to reach $783 million (over 6,500 crore).
• The global dating market size in 2023 was $8.5 billion (~₹70,000 crore).
• And it is expected to reach $58.8 billion by 2027.

When we talk about dating apps specifically, Tinder is the first option that comes to mind. Well, it has created its reputation of being the most popular dating app worldwide. In June 2024, it generated the largest in-app purchase revenue of $82 million (₹683.552 crores), followed by Bumble with an in-app revenue of $43.3 million (₹360.9 crores).

Apart from these two, Badoo is also one of the prominent players in the market, with over 40 crore registered users. However, its popularity is primarily in China and Southeast Asian countries.

If you are under the illusion that only common folks use dating apps, then let me share an inside gossip. Top celebrities admired all around the globe are also on the journey of finding love with the help of some elite, membership-based apps such as Raya.

So, are dating apps just about swiping right and finding a match? Not really. These platforms are not only shaping how we seek connections but also rewriting the rules of business in the digital age.

The Business of Love: How Dating Apps Really Work?

Well, if you don't know how these apps work, worry not. I'm here to resolve all your doubts. And people who already know the knacks of these apps, correct me if I'm wrong.
 
Dating apps use the "Freemium" model. The basic idea behind this model is to lure the user to try the basic features of the product first. Once they get the hang of it, their dil maange more. Then, these apps focus on converting a portion of customers into paying customers by offering enhanced features, tools, or ad-free experiences. This provides a good balance between monetisation and accessibility.

This model is commonly used in apps, software, and online platforms that include dating apps as well. That’s how they attract a large user base and convert some into paying customers by providing added value.

To give you an idea of how quickly this addiction can escalate, allow me to introduce you to Rahul (yes, he's imaginary). He joined a dating app because why not? After all, making a profile is free.  

One fine day, Rahul was on his regular left-right swiping parade. Suddenly, he received a notification that he was eagerly waiting for. He got matched with a girl! But, but, but, he doesn't know who she is because he doesn't have access to look at her profile. Now, he can’t miss this opportunity. So, out of desperation, he ended up paying for what we commonly call the "subscription".

That means Rahul will finally get a girlfriend, right? Umm...  Well, sorry to break it to you, Umm…  Well, sorry to break it to you, but it's the desperation and misery of people like Rahul that help these apps to grow. They keep you single with their ultimate secret weapon- Algorithm.

The algorithms used by these dating apps often favour certain profiles over others, making it even harder for the average user to find a match. The apps are designed to keep users engaged, which means they often promote profiles that are already popular.  What a bummer, isn't it? Well, there are more disappointing things coming over.

Let me introduce you to another revenue tactic of dating apps- “in-app purchases” such as super likes, profile boosts, and even read receipts. If you do not want to commit to monthly subscriptions and want to get ghosted in real-time despite paying money, just go for these in-app purchases! 

But just like Rahul, you might not find much luck. After all, your loneliness is filling their pockets. The ads might influence you a little, but they wouldn't fulfil what they promised.

Some people don’t even want a partner. They’re good on their own. But how would dating app companies earn if you feel so complete and content? 🙄
 Bumble, for example, attacked people who chose celibacy instead of finding a significant other.

Apart from your insecurities, there are several other options that help these dating app companies to make more money. There are several other ways, such as advertising and branding. However, advertising plays a minimal role in the revenue streams of dating apps.

Ads would literally add insult to injury by showing you grooming products, latest skincare brands or trendy haircare products. This just constantly reminds you that you're single and you need to throw more money to be a chick magnet.

However, advertising plays a minimal role in the revenue streams of dating apps. For Bumble, it was just 3%. While Tinder Gold offers a "No ads" feature, the company has confirmed that advertising contributes only a small portion of its profits.

Occasionally, Tinder incorporates advertisements through sponsored profiles for brands, TV shows, or charities that people can swipe on. Despite this limited use of ads on platforms like Tinder and Bumble, Hinge sets itself apart by pledging to avoid in-app advertisements. However, it remains open to potential brand partnerships.

Dating Apps Are Keeping You Single (On Purpose)

When it comes to making a profile, dating apps don’t really discriminate. However, dating apps aren't as merciful to heterosexual men as they are to others.

Well, it may have something to do with this huge demand and supply issue. The majority of people using these apps, 74% to be exact, are men.

Statistically, women are likely to receive twice as many likes as men on dating apps. According to a 2017 analysis by Hinge Engineer Aviv Goldgeier (which has now been deleted), men are three times more likely to swipe right and initiate matching a profile than women.

Half of all likes sent to women on the dating app Hinge are directed at the top 25% of female users. This distribution is even more selective among men, as half of all likes from women go to just 15% of the male user base.

This means that while men are busy swiping, women often receive attention (sometimes unwanted as well). This disparity creates a competitive environment that can be discouraging for many men.

So, in order to compete with the top 10-15% of men, many men end up in a desperation loop and spend their time swiping right without thinking much about who they're choosing. The desperation and FOMO take over and kick rationality out of the picture.

Now, here's the thing: Men believe that constantly swiping right, putting extra effort into enhancing their profile, and begging to algorithm Gods is what's going to get them their ideal match (or at least a match). They think these apps are their saviour. Unfortunately, that's not the case.

Ultimately, the cycle continues as people find themselves investing more time and money into the app, hoping for that one connection to fill the void in their lives. It's like being a hamster on a wheel. The carrot is dangling right in front of him, and he's constantly running in hopes of getting it one day.

Are Dating Apps Worth the Price?

Love is priceless, but dating apps aren't! At the end of the day, everyone's trying to make money. Dating apps use all sorts of tactics to convince you that they're the only ones that can save you from falling into the hell hole of loneliness. But as we discussed, you're just another cash cow for them.

So, let’s brush up what we learned-

• Dating apps will follow you everywhere on the internet. "Want to listen to songs? First, listen to my ad that'll manipulate you into thinking how pathetic your life is without love.”
• Entry is free. However, it will soon take a problematic turn.
• The good stuff (I mean the suitable person) is behind a blurry wall, and you need to pay for a subscription to know who finally gave you attention.
• Why stop at one when you can get attention from more people? There are features like SuperSwipes & Superlikes. That'll cost you extra, though.
• And at the end? You're at the mercy of the algorithm. Which, by the way, are designed to keep you in a loop of singlehood.

Always remember, these apps thrive on your two most important emotions- the desire to have a fulfilling relationship and the fear of dying alone. As humans, it is natural to have hopes, wishes, and desires. While we cannot offer you dating advice, we can surely help you discover your own human biases and tendencies to get manipulated.

So, would you still want to give online dating a shot, or do you believe in fate?
Let us know in the comments👇🏻

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