Like any other industry in 2020O, online dating also faced challenges. In this economically turbulent period, online dating industry has not only successfully overcome the bumps on the road, but also managed to post impressive and continued growth figures.
One of the major shifts in online dating as a digital business in 2020 occurred with the COVID-19 pandemic and the related move towards virtual meet-ups.
The predictions of many industry analysts about the rise in the use of apps to connect came true: more and more people are embracing online dating, with it slowly the steadily becoming “the new normal”.
Yet, it comes as no surprise that, because of the unique restrictions of the pandemic, potential matches were not shy about making use of video conferencing and distance communication methods to “test the waters.”
Because of the embrace of this aspect of the new rules of the game, many dating apps were forced to implement new features such as digital payment options and video messaging, in order to meet new user demand.
This had the added benefit of normalizing online dating in addition to making it seem like a socially-responsible choice. Whenever online dating appeared in the headlines, it was discussed alongside one of many digital businesses such as Zoom and Slack that are making the transition to socially-distanced lifestyles easier.
Rather than segmented out as a new or novel addition to the landscape, online dating was discussed as a new normal that did not distinguish it from any other form of dating. A trend that many analysts have identified is the explosion in the number of dating apps tailored to specific audiences. This trend kicked into high gear with the 2020 embrace of online dating and is thought by many to be the future of the niche.
Having a first-hand view over the online dating market, we in the digital banking space know the truth to be something quite different. As one of the most successful ways of connecting two people in the modern era, online dating is also a huge business and one that depends on robust security and digital banking services.
According to MarketWatch analysis, the online dating industry has become the most popular form of dating for homosexuals, and the second-most popular way to meet partners for heterosexuals (after meeting through friends). This is fundamental and yet very important for the market opportunities laid ahead for the industry.
The global online dating market is often presented as being segmented on 4 main bases: purpose, channels, devices, and revenue models. On the basis of purpose, online dating is often segmented into casual relationships, socializing, and marriage.
The two main channels for using online dating services are mainly divided in two categories: dating websites and dating apps. Furthermore, on the basis of devices usage, online dating industry has been divided into mobile and desktop as per the respective online usage. Revenue and business models for online dating services are divided into membership subscription and freemium business models.
In the period 2020 – 2024 the global online dating market is expected to be driven by various growth-enhancing factors such as the rising single adults population, changing the status-quo and perception of online dating, the rising internet penetration, the “easy love” concept, and others.
Online dating did not feel the negative economic impacts during 2020 that many other sectors suffered. Revenue in the segment is expected to reach $USD 2.725 billion in 2020 alone with projected growth reaching $USD 4.23 billion by 2024 according to Statista. This places revenue growth at a neck-breaking 11.6%.
Currently, there are 243.9 million non-paying users as opposed to 76.4 million paying users on digital apps. These numbers are expected to even out by 2024 with non-paying users at 316.1 million and paying users at 125.7 million. This expansion in the number of paying users underscores the importance of robust digital banking security and payment systems for online dating apps. It also marks it out as an area of potential growth in the near future.
Though most analysts note the unique circumstances that 2020 brought to the industry, they also underscore the somewhat permanent changes we are likely to see on the business landscape because of it. The turn towards moving services into the digital sphere on a large scale can only help but accelerate the steadily growing embrace of online dating in the future.
In recent years Monneo has provided cutting-edged digital banking solutions to businesses operating within the global online dating industry. Those are indeed services fundamental to the business development trajectory of such e-business-model related commercial activities. You can check Monneo’s website for more information on that. Our team of experts will be happy to answer the queries or questions you have.