Tinder Gold is a gold mine for Match group
Match Group is having a busy year so far. It’s talking a good game when it comes to upcoming online dating player Facebook; it’s in the midst of legal battles with smaller rival Bumble; it’s just completed an acquisition of “meaningful” digital romance service Hinge; it’s continuing to watch its market cap appreciate. However, if 2018 has been a year of changes for Match so far, one thing has remained the same: “casual dating” app Tinder – the company’s super-star platform that buys into “hook-up” culture – continues to outperform. And its Gold membership option is giving daters even more of what they want.
Match Group’s share price has risen by 24% so far this year
Source: Yahoo Finance
Tinder transformed the online dating world when it was launched in 2012. The company’s quick-fire system, gamified interface, and honesty over what type of relationships it was seeking to facilitate (here’s a hint: people rarely take their Tinder dates home to meet mum and dad) made it an instant hit with young daters looking to find love – or something a little like it – on the go.
In 2015, Tinder offered a “Plus” subscription. Then, in 2017, Match created another tier of user: Gold. So far, it’s been a massive success.
One of Gold’s most tantalizing features is the ability to bypass the “swipe” feature that is so intuitive and entertaining. The way Tinder works is that you’re shown a profile (usually just a picture and a few words) and you have to swipe left or right to indicate whether you’re interested in meeting the person. They also swipe left or right, but you only see each other’s responses after the event. While that remains a huge draw for Tinder, people also want the ability to see behind the system, and check out who likes the look of their profile without playing their hand.
The advertising campaign for Gold is brilliant, because it shows users this data – but blurs it all out. Unsurprisingly, this has been an incredibly effective way to get people signing up.
The company has also released Tinder Picks, which sees the platform curate four matches for each Gold user every day, based on factors like education, interests, and the swipes they’ve made previously. As Match continues to develop its blockbuster dating app, newcomers to the space (listening in, Facebook?) will have their work cut out if they want to grab market share.
Dominion holds Match Group in its Global Trends Managed Fund.
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