The dating site market - Italy

1.2 A Growing Global Market

The online dating market size was valued at $*.** billion in **** and is expected to reach $**.** billion by ****, growing at a CAGR of *.**% from **** to ****.

Marché mondial des rencontres en ligne Monde, ****-****, in milliards de dollars Source: ****

The global market is being driven by the increase in the number of singles worldwide and the growth in internet usage worldwide. Millennials" (***) are the main users of these services and the sites and applications are increasingly innovative, thanks to new technologies available to them, such as AI.

The most popular applications around the world vary depending on the operating system. Overall, Tinder was the most downloaded app in **** with about * million monthly downloads and ** million total downloads in ****. As of ****, Tinder has ** million monthly active users and *.* million premium service subscribers. By number of monthly downloads, it is followed by Badoo with ** and Bumble **.

Most Used Dating Sites, by Number of Downloads in **** World, ****, in millions APPTOPIA

The Match Group owns several online dating services such as Tinder, Match.com, OKCupid, Meetic.com and Pof, making it the global market leader.

At the European level, online dating is worth *.* billion euros. The country where online dating has the highest turnover is the United ...

1.3 The Italian market

In Italy, the market is already strongly developed and it is expected to continue to grow in the coming years.

According to a survey carried out by Ogury (***), Lovoo and Tinder. Moreover, Italians seem to be among the most active "daters" in Europe: in fact, there are about *.* million singles who are actively looking for a new partner through these tools[***]

As mentioned, the turnover of online dating in Italy is *** million euros, of which ** million euros referred only to extramarital dating sites, which are also those most in growth[***].

With regard to the revenues of dating apps, these have grown significantly over the years thanks mainly to the introduction of new paid features.

Online Dating Revenues in Italy Italy, **** - ****, millions USD Speed Date

If we also consider the induced activities, Italy is first with a dating expenditure that in **** -despite a **% decrease compared to the pre-pandemic period- is ** billion euros.a considerable figure that takes into account about *.* billion euros for catering (***) and *.* billion euros for travel[***].

1.4 The Covid Effect 19

Quarantine periods have strongly pushed the use of dating sites by Italians and decreased the social stigma around these apps.

The growth is all in the numbers. According to data collected by Business of Apps, dating apps grossed about $* billion in ****. Between January and September ****, market leader Match Group (***) over *** million. Basically: in the space of nine months, the top two companies in the industry grossed just under the entire market in all of ****[***].

Since the second quarter of **** (***) and each user is "worth" more: almost $**[***].

Inner Circle, a global dating app, also recorded a ***% increase in activity in Italy in **** compared to the previous year[***] 

On the wave of increases in dating app registrations, Facebook has also launched "Facebook Dating".

In Italy, activity increased dramatically in early March by about **%[***].

Tinder, relative to the Italian market, reported not only a **% increase in the number of conversations in lockdown, but also a **% increase in their average length. People got to know each other more in chat than before the quarantine. OkCupid also reported a **-**% increase in usage over the same period. The quarantine also seems to have brought about a need for more committed relationships, as confirmed by dating site ...

2.1 The number of singles and internet use are driving the development of online dating services

The two main factors in the development of online dating services are the number of singles and the use of the Internet by the population.

The number of single people (***) has been constant in recent years and the number of people who fall into this category represents about **% of the Italian population.

Number of single, divorced and widowed people in Italy Italy, ****-****, in millions ISTAT

In addition, the percentage of the population using the internet has increased from a value of **% to a value of **% in **** and this represents a real opportunity for online dating services.

Internet use in Italy Italy, ****-****, percentage EUROSTAT These factors and their growth can be identified as two of the main drivers of demand for dating sites in Italy as well as abroad. In addition, as mentioned above, the conception of the population regarding the use of dating sites has also changed. In fact, **% of Italians believe that using dating sites is a good way to find a partner[***].

2.2 The consumer profile of online dating services

The use of dating sites in Italy is increasingly widespread. **% of Italians have used a dating site at least once in their lives[***]. Of this percentage, a gap emerges in the use of men and women.

Men have always been much more frequent users of dating sites and this is demonstrated by the fact that only **% of Italian women have used a dating site at least once compared to **% of men[***].

The most active users on these sites belong to the younger segments of the population, which of course are those who use the Internet more on a daily basis. In general, **% of teenagers use a dating app [***]. This can be explained primarily by the more frequent use of the Internet by the younger generation, but also by the marital situation, which changes with age. Those over seventy-four years old represent a smaller percentage of the individual population that might be interested in this type of service.

Use of dating sites by age, at least once Italy, ****, percentage YouGov

There are several reasons why Italians use dating sites, with **% stating they use them out of curiosity and only in **% of cases to start a relationship. This is an indication of how, ...

2.3 The risks and disappointments of dating sites

Online dating platforms pose a risk to those who use them, and dating is not always a happy ending.

A risk of addiction

The first risk of these platforms is user addiction. In Italy the situation is very different from other countries, only *% of those who use Tinder between the ages of **-** use it every day. In contrast with other European countries. In Spain, for example, **% of users spend more than * hours a day for *-* days a week, in France **% of those who have used the platform have experienced addiction in the past[***].

Frequency of Tinder use, young people between **-** years old Italy, ****, percentage Italians.Coop

Lack of trust in the information provided **% of users consider the information provided on the profiles of these sites moderately reliable and **% consider it unreliable. In addition, **% believe they have seen profiles containing false information and **% believe users of these platforms cannot be trusted. **% of respondents found out during a date that some of the information provided was false and **% even found out that the person on the date was a different person than the one presented on the profile. Sexual harassment and extortion attempts Because of the ease of registration and ...

2.4 University Poles and Use of Dating Sites

According to Tinder's **** report, the cities with the highest number of interactions in Italy are Milan, Turin and Acilia-Castel Fusano. An interesting fact is the presence of Acilia, a town near Rome, which despite a small number of inhabitants, has a high number of interactions. This can be explained by its proximity to the university of Roma Tre. This is the ranking:

Milan Turin Acilia-Castel Fusano Padua Bologna Rome Prato Monza Modena Trieste.

As can be seen from this ranking, the cities are all characterized by the presence of important university poles. This highlights once again how the catchment area of young people between **-** years is the most important for dating sites in Italy, especially those developed with apps. We can see in fact that most of the cities present in this ranking are also the cities with the highest number of university students in Italy.

Number of students, by city Italy, ****, values in thousands The numbers of Bologna

At the level of regions, Lombardy is the one with the highest number of enrolled students, followed by Lazio and Campania. Also, Rome is the city where people chat the longest[***].

3.1 A market dominated by a small number of players

Despite a large number of apps and communities (***), which mainly owns sites specializing in long-term relationships, such as eDarling, AttractiveWorld or EliteSingles.

Such profitability can also be seen in the App Stores where among the most downloaded social apps worldwide are precisely dating apps.

In ****, among the apps in the Apple Store for iPhone, Tinder was the third most profitable app with revenues of *** million[***].

Despite this, the most popular app among Italians is Meetic, the historical player born in **** (***). Grindr and Facebook Dating are less popular.

Most popular and known Dating App in Italy Italy ****, percentage YouGov

However, even if the incumbents continue to dominate the market, their market shares tend to decline in an industry that has become extremely competitive. "The online dating market is a jungle," according to Alexandre Lubot (***)[***]. A second reason for this erosion of the market share of the leaders is the increasing segmentation of the platform according to the passions and goals of the users. We are seeing the emergence of platforms for animal lovers, sportsmen, artists, etc. Niche platforms are multiplying and attracting some users who are "tired" of generalist sites or apps.

3.2 The business model of dating sites and apps

Apps often develop around the same business model that combines multiple revenue sources:

A freemium business model:

Free version: apps offer a free version of the app to attract customers. Features are limited with, for example, a limited number of swipes per day. Premium version: A premium version is then available with additional features. With Tinder Plus there are unlimited likes, you can review the last profile you didn't choose, there are * super likes per day, * boost per day and a passport to see profiles anywhere in the world. Tinder also launched a Tinder Gold version, with a higher price and the ability to see who liked your profile. badoo, Loovo, Grindr and others also offer premium services with similar features.

Self-sold services:

Apps also offer users the ability to purchase an ad hoc feature. The Boost feature is available on Tinder, for example, and allows users to increase the visibility of their profile by ** times and the number of matches by three[***].

Advertising:

To make money on free accounts, apps offer ad inserts to brands. On Tinder, these ads take the form of sponsored profiles that appear among the profiles of regular users.

Sales data:

Dating apps have a significant ...

3.3 New Players

Digital giants

The arrival of digital giants in the market is expected to shake up the forces at play. In particular, Facebook has launched its dating service "Facebook Dating" in the United States and in ** countries in America and Asia. This poses a strong threat to existing players, especially since Facebook already has a large database of users and personal data, thanks to which the social network can precisely set up profiles and optimize virtual dating for its users.

The service does not require the installation of an application and is integrated with those of Facebook, although the profiles of the two services are separate. The profile is created from Facebook photos and posts, but is then fully customizable. The platform is designed as a classic social network with the ability to comment on other users' posts and the absence of "swipes" that are replaced by "likes". In addition, the group has thought of the "secret crush" feature in which users can add a Facebook profile to their list of favorites. If the crush is mutual, both receive a notification

The service was supposed to be available in Europe from the beginning of ****, but the launch was postponed because Facebook did ...

4.1 Different offers for different profiles

Online dating apps and sites are numerous and have precise segmentations that allow them to appeal to a particular type of consumer.Among the websites stand out:Historical sites for finding love:

These sites are mostly used by people who are older and looking for serious relationships.

Meetic: most popular dating site in Italy for this age group, claims ***,*** conversations started each month on the site and *.* million messages sent each month[***] and is aimed primarily at people looking for a stable relationship. eDarling: site for demanding singles, as the platform claims, users will have to pass a personality test to refine their search and save time by focusing on profiles with the same interests. Match.com: a site similar to Meetic and purchased by the company in ****, prior to the acquisition of Meetic by the Match Group in ****. The site allows each individual user to write down what they are looking for, the profiles are extremely detailed.

Sites of extramarital affairs like Ashley Madison. These sites offer their users to meet married people or couples for one-night stands.

There are also specialized sites on a segment, depending on interests or searches.

There are also hybrid sites that started on a ...

4.2 Price Analysis

A study of the prices proposed by the different platforms shows different business models with specific prices for each model. On the one hand, some platforms propose to buy "credits", a kind of virtual currency that allows you to perform actions in the platform. On the other hand, others offer paid access to the entire platform in the form of a subscription. some players hybridize solutions between subscriptions and integrated purchases. Finally, Adopteunmec, as already highlighted, offers free access for female profiles and paid access for male users.

Prices vary greatly depending on promotions to attract new users. On the other hand, some applications have been singled out for differential rates charged between generations, sexual orientation, etc. Thus, Tinder would offer higher prices to older, urban-dwelling and heterosexual people[***].

Example of prices of paid subscriptions (***) Here are taken the sites present on the various websites/apps as of March ****:

Paid services are not limited to subscriptions and platforms also offer one-time services to allow users to enjoy special services. These have the advantage of a premium service but without commitment.

Example of pricing for additional services:

4.3 Supply trends

Dating apps frequently update their offerings, offering and adding new services. This is due to the low barriers to entry and the increase of players in the market.

These in order to differentiate themselves launch different services such as different ways of matching or decide to target a precise market segment.The first trend in the offer is therefore to offer specialized sites to certain types of customers. There are some for Christians, Muslims, vegans and even meeting love through your dog withTindog. This diversification has the advantage of saving users' time by offering them profiles that meet their expectations and essential criteria from the start.The other innovations in the offer are based on function and concept. There is a huge diversification of the offering to suit everyone's search.

Tinder is best suited for those looking for short-term relationships, with an extremely fast profile selection mode, where instantaneousness is favored. As for Happn, it is trying to bring back some spontaneity in dating apps by digitizing the randomness of street dating. In this way, all users can find an application that suits their interests and activities, but also the nature of the relationship they are looking forSites like Meetic also ...

5.1 Regulation

There are several regulations to which dating sites are subjected. If they are located in a country of the European Union, the site must specify a series of information about the company and the services offered. They must in fact specify, within their site, general information about the company such as registered office, telephone numbers, VAT number, etc..

In addition, the owner of the site must make clear and visible to the user the difference between a free registration and a paid subscription profile that allows access to other services. In addition, each site is obliged to respect a right of withdrawal to subscribers of ** days from the date of registration[***].

The main regulatory issue for dating platforms is the protection of user data, which is governed by the GDPR that applies to all EU member states. The relevant regulation is available on the Europa Lex website.

Some apps such as Tinder and Grindr have been accused of selling some intimate data. The sale of data is therefore strictly regulated and platforms must allow users to easily retrieve their data[***].

6.1 Segmentation

• Meetic
• Badoo
• Tinder (Match Group)
• Lovoo
• Happn
• Bumble
• Hinge
• Match group OkCupid