Dating Services Report 2016
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eSERVICES: DATING SERVICES DATA BASIS AND METHOD OF ANALYSIS Overview Pages Subject Essentials 03 – 05 Detailed overview › Market scope Online Dating Services allow users to access a bigger pool of prospective partners › Customer benefit, market size All segments (matchmaking, online dating and casual › Future developments, assumptions and sensitivity analysis dating) are growing 06 – 08 KPI-Comparison › Market KPI comparison by region in the form of charts Largest market is the US with US$1.9bn in 2016 › Market KPI comparison by region in the form of tables China has the highest average growth rate (10.4%) › Key takeaways 09 – 10 Framework › Dating Services segment within the eServices market The eServices market has an average growth rate of 20.9% p.a. and the dating service segment has a CAGR › Dating Services vendor landscape of 5% 11 Deep Dive In Europe most countries are dominated by Tinder, Most downloaded dating apps by country › followed by Badoo and Lovoo 12 – 14 Market structure, contact and imprint 2 ©Statista Market Digital Outlook DATING SERVICES: PRODUCTS AND SERVICES Market scope – Dating Services Event Tickets Fitness Online Dating Matchmaking Casual Dating Speed Dating Food Delivery Social Networks Niche Dating 3 Focus segment Out of scope Other segment reports ©Statista©Statista MarketMarket DigitalDigital Outlook Outlook DATING PORTALS OFFER A VARIETY OF SERVICES THAT SUIT ANY USER AND THEIR INTENTIONS Customer benefit Market size There are different groups of In addition, a variety of online The dating service market is of about 50%. However, the user customers that benefit from using dating services exist. Each user divided into three service base is largest in the online online dating services. These can find a service that matches categories: matchmaking, casual dating segment with a share of customers are searching for a his or her interests and dating and online dating (see approximately 65% of total users. relationship (matchmaking), a intentions. Matchmaking services page 12 for detailed definitions). Comparing figures globally, it can flirt (online dating) or a sex identify potential partners using Dating apps offer flexibility and be noted that most of the revenue partner (casual dating). complex matchmaking-algorithms convenience as you can find is generated in the United States based on the results of personality On dating portals or apps, users potential partners everywhere and (US$1.9 billion in 2016). The tests. Many portals also allow can meet a wider circle of at any time on your phone. Hence, United States is followed by users to just flirt and chat without people. Users get the chance to smartphone penetration has a Europe, which had a revenue of any kind of commitment. get to know all kinds of people major impact on sales. Due to the US$1.2 billion in 2016. Revenues Customers who seek a lover can they would normally not meet in rise in smartphone penetration, in China are the smallest in this use casual dating sites. Dating their everyday life. Users are also too, dating services have become comparison with US$0.57 billion portals used by married users looking at a bigger dating pool of more sought-after. In addition, the in 2016. looking for affairs have special prospective matches on dating stigma of online dating is features regarding discretion and Regarding Europe, the United websites. diminishing, which drives the data security (e.g. blurry pictures) Kingdom is the leading country success of dating services. Furthermore, dating portals have a to protect users. with revenues of US$0.24 billion variety of search options or filters However, some users regard the in 2016. (e.g. age) to help users find what collection of their personal data “There are bad sides to When it comes to most they are looking for. This makes with suspicion and are afraid that everything but I think, for downloaded dating apps in dating more efficient. third parties might misuse their the most part, online dating Europe, Tinder dominates data. This hampers the growth of Dating portals help users with a is one of those things that is northern countries; Badoo is top online dating services. busy schedule who have no time really solving one of in the East and South. In German- to go out and meet people by society's problems.“ The global revenue in the dating speaking countries, Lovoo is the providing a forum for doing just Gary Kremen, co-founder of Match.com services segment amounts to number one app. The US is also that. Through dating services they (2015) US$4.6 billion in 2016. Most of dominated by Tinder, whereas can still get in touch with others the revenue is generated by Momo is the most downloaded that share their interests. matchmaking services with a share dating app in China. 4 ©Statista Market Digital Outlook MOBILE DEVICES ARE PERFECT FOR LOCATION- BASED, REAL-TIME DATING SERVICES Future developments Assumptions and sensitivity analysis The main global drivers of the purchasing power especially in Our forecasts include the service model of dating services is called dating services market are urban areas. categories matchmaking, online into question by users. Therefore internet and smartphone dating and casual dating. Niche the industry will need to explore We anticipate a shift to mobile penetration. Smartphones en- dating services are not new revenue streams and add dating and hence an increasing able ubiquitous and immediate considered (e.g. WooPlus for plus- extra value to dating services; e.g. use of dating apps on smart- access to dating services through size singles). These websites are through services that provide phones rather than using desktop apps. Besides, online dating is now excluded as they have very low additional benefits for the user. versions or dating portals. much more culturally accepted. market relevance. The user database of dating In addition, we expect online As internet and smartphone As online dating becomes more service providers is a big asset. dating to converge with social penetration is already very high in pervasive, concerns centered Demographic data, interests and networks. Dating portals will be the US, we expect the US to have around security and online attitudes allow excellent less focused on finding a partner the lowest growth with an annual safety become increasingly targeting for advertisers which for life and place more emphasis growth rate of 3.5% (2016-21) important for both the industry makes advertising on dating on meeting new people instead resulting in a total market volume and the users. We therefore portals very attractive. Hence, (like Badoo). This establishes a of US$2.3 billion in 2021. expect a significant improvement services that have a large user more relaxed atmosphere and with regard to security and data base can be fully financed through Within Europe, Russia has the users do not feel forced and protection within the next years. advertising revenues. This favors highest CAGR, lifting the whole pressured into finding a partner. However, should these issues be freemium business models. region to an average annual Furthermore, it is expected that neglected in the future, data growth rate of 3.6% and a market In our forecasts, we consider both dating apps will be used on breaches like the Ashley Madison volume of US$1.5bn in 2021. paying users and non-paying users smartwatches to access messaging hack will negatively affect user (e.g. freemium models), which The fastest growing region is functionalities faster. growth and revenues. A group of impacts the average revenue per China with 10.4% CAGR1 to 2021 hackers leaked more than 25 user significantly. As the online resulting in a market volume of “Online dating will be gigabytes of company data dating segment has the highest US$0.9bn in 2021. This fast mobile only; that’s where including user details. share of free users, and because growth is caused by an ongoing the trend is going” Dating portals and apps will need prices are significantly lower Chinese internet penetration Arum Kang, founder Coffee Meets Bagel, to regularly add new features. compared to matchmaking growth period (new potential (2015) With the growth of free dating services, the ARPU2 is the customers) and increasing sites, the subscription-based smallest in this segment. 1: CAGR: Compound annual growth rate/average growth rate per year 2: ARPU: Average revenue per user 5 ©Statista Market Digital Outlook DATING SERVICES IN MAJOR REGIONS Market KPI comparison by region United States China Europe Revenue forecast in million US$ by region +3.5% p.a. +10.4% p.a. +3.6% p.a. 682 Casual Dating: 540 714 356 Online Dating: 650 282 36 409 159 350 22 Matchmaking: 890 734 91 733 685 452 585 2016 2021 2016 2021 2016 2021 Revenue per user in US$ by region 24.31 2.13 13.76 2016 14.65 2016 1.35 2016 6.60 77.59 9.25 38.19 29.19 2.65 15.63 2021 15.40 2021 1.54 2021 6.98 87.09 10.96 41.12 Source: Digital Market Outlook 2016 6 ©Statista Market Digital Outlook DATING SERVICES IN MAJOR REGIONS Market KPI comparison by region United States China Europe Dating Services revenue CAGR1 CAGR1 CAGR1 Segment Unit 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 16 – 21 16 – 21 16 – 21 Total mUS$ 1,924 2,012 2,093 2,167 2,231 2,286 +3.5% 565 642 719 793 863 928 +10.4% 1,217 1,270 1,319 1,366 1,410 1,450 +3.6% Matchmaking mUS$ 734 774 810 841 867 890 +3.9% 452 508 565 622 678 733 +10.1% 585 608 629 649 668 685 +3.2% Online Dating mUS$ 650 666 681 693 704 714 +1.9% 91 109 126 140 151 159 +11.7% 350 364 376