How Dating Apps Make Money and Why It’s Changing | WSJ The Economics Of

The Nugget

Dating apps are evolving to retain users by offering diverse features beyond matchmaking, such as social networking, AI wingmen, and even niche services, as they adapt to changing user preferences and behaviors.

Make it stick

📱 Dating apps use freemium models to entice users with free features, then monetize through subscriptions or one-time payments.
🤖 AI is shaping the future of dating apps, offering personalized suggestions, virtual companionship, and innovative ways to enhance the user experience.
👥 Niche dating apps retain users better by catering to specific communities and interests, fostering deeper connections among like-minded individuals.
🌍 Dating apps are expanding beyond matchmaking, integrating social networking features and services like travel tips and healthcare information to enhance user engagement.

Match Group owns and monetizes popular dating apps like Tinder, Hinge, and Plenty of Fish, adapting by adding social networks and AI features to stay relevant.
Companies are shifting focus from matchmaking to broader user engagement, offering diverse experiences and services like niche dating, social networking, travel tips, and healthcare information.
Dating apps are evolving to cater to changing user preferences, aiming to build long-term relationships and retain users by expanding beyond traditional matchmaking.

Most dating apps use freemium models, offering basic features for free but charging for premium services like unlimited swipes or enhanced visibility.
Companies are facing challenges in retaining paying users, leading to the development of subscription tiers, one-time purchases, and innovative revenue streams to enhance user engagement and increase profits.
Niche dating apps and services are gaining traction, offering specialized experiences that cater to specific communities and interests, fostering deeper connections and higher user retention rates.

Dating apps are leveraging AI to offer personalized suggestions, virtual companionship, and innovative features to enhance user experiences and engagement.
Companies are exploring ways to use AI to create more authentic conversations, provide tailored recommendations, and improve user interactions for better outcomes.
AI features like digital dating assistants and conversational companions are being developed to retain users, enhance user experiences, and differentiate dating apps in a competitive market.

"What Match has done quite well is buy other properties... Having a portfolio of dating apps, that's really the ideal business model."
"We should not build a dating product that is awesome for 2021 or 2022. We should build a dating product that is gonna be awesome for 2027."
"For Muslims, getting married, finding your life partner, is such a big part of our life, our culture, and even our religion, right?"
"This is an ecosystem of human connections and using technology as a bridge to build healthier and more equitable relationships."
"Niche dating apps tend to do a bit better when it comes to the continuity problem. People will tend to stick around on the niche apps because it's with their people."

This summary contains AI-generated information and may have important inaccuracies or omissions.