Tinder is undoubtedly one of the world’s most popular dating apps, with at least 66 million users worldwide. Tinder is also the most popular dating app in the United States with estimates putting the number of users at over 7.8 million.
US dating app market share, Source: businessofapps.com
In 2020, Tinder recorded revenues of $1.4 billion, making it the highest-earning brand under its mother company, the Match Group.
This article discusses Tinder and the successes it recorded during the Covid-19 pandemic. Additionally, the article explains how Tinder makes money, achieves marketing success, and even how it differentiates itself from other apps.
Tinder has been in the online dating industry since 2012. At its inception, Tinder was a joint venture of the IAC Company and Xtreme Labs.
The app allows users to view the profiles of other users anonymously and then swipe left or right on the profile. Swiping right means you like the profile while left signifies a lack of interest in the profile. When two users swipe right on each other’s profiles, they become a match and are, therefore, allowed to message each other.
Initially, for one to register on Tinder, they needed to have a Facebook account. Starting from August 2019, however, Tinder allowed users to register with their telephone numbers only.
Tinder dating app, Source: Proreviewsapp.com
On top of that, Tinder was not accessible on desktops until September 2017 when the company launched Tinder Online.
It is also in 2017 that Tinder became a part of the Match Group. At the time of the merger, IAC was the majority shareholder of Match Group. However, in July 2020, Match Group completely separated from IAC.
As of 2021, Tinder is usable in 190 countries and is available in more than 40 languages. Furthermore, since its launch in 2012, Tinder has made over 65 billion matches and has been downloaded over 430 million times.
Valuation of global dating apps 2021, Source: businessofapps.com
As seen in the graph above, Tinder has a valuation of $10 billion which makes it the most valuable dating app globally.
As a result of the control measures and economic lockdowns during the Covid-19 pandemic, many businesses experienced adverse drops in business and revenue. At Tinder, however, the situation was completely different.
The social distancing requirements and stay-at-home orders increased the demand for digital social interactions. On the 29th of March 2020, for example, the app recorded a total of 3 billion swipes, breaking the company’s record of swipes for a single day.
To get a clearer idea of Tinder’s impressive performance during the pandemic, consider the following statistics:
In March 2020, at least 59 million visited Tinder.
Tinder Covid pandemic, Source: extra.ie
In 2020, users created 6 million new profiles on Tinder representing an increase of 1 million from 2019’s total number of new profiles.
Tinder was the top-earning non-gaming app in the 1st half of 2020, earning combined revenue of $433 million across Google Play Store and Apple’s App Store.
In 2020, Tinder’s year-on-year revenue grew by 31%, 15%, and 15% for Quarters, 1, 2, and 3 respectively.
In 2020, Tinder’s total revenue was $1.4 billion representing an increase of 18% from 2019 revenues.
In 2020, Tinder gained 800,000 new paying subscribers bringing the total to 6.7 million subscribers.
Tinder was the 3rd highest-earning non-game app in the 1st half of 2021, earning $520.3 million on both Google Play Store and Apple’s App Store.
In May 2021, 6.5 million downloaded Tinder making it the most downloaded dating app globally.
In summary, Tinder has thrived since the pandemic started.
Tinder operates on a freemium business model meaning that basic services are available for free while upgrades or premium services come at a price. Basic services on Tinder include creating profiles and viewing the profiles of others.
With regard to premium services, users have the option of subscribing to either of three Tinder plans:
Tinder introduced this package in 2015. It costs at least $8.33 depending on the length of the subscription. The package features:
Ability to hide ads
Tinder passport to any location
Started in the third quarter of 2017 and has all Tinder Plus features plus:
See who likes you
1 free boost every month
Free super likes
Plans start from $12.50 a month.
Tinder’s newest offering started in the last quarter of 2020. In addition to the Plus and Gold features, Platinum includes:
Message before match
See likes you have sent
Platinum plans start from at least $16.66 per month.
A la carte products
Tinder also earns direct revenue from selling certain features on a pay-per-use basis.
Super boosts and Top picks (limited to subscribers)
Apart from direct revenue, Tinder also earns indirect revenue from advertising. For example, Tinder has run advertising campaigns for Amnesty International, Domino’s Pizza, and even the Ex Machina movie.
One of the biggest drivers of Tinder’s success in the dating app industry is its effective targeting strategy. Tinder specifically targets Millenials and Generation Z users. Tinder did this by offering a full-on mobile experience for its users from the beginning.
When Tinder first launched in 2012, it got at least 10,000 new users by targeting college/university students. The app increases its appeal to students by sponsoring/hosting Tinder-themed college fraternity and sorority parties.
Exciting Tinder Status, Source: growthninja.substack.com
In fact, Generation Z has become the biggest user of Tinder. During the pandemic, over 50% of Tinder users below the age of 25 had a Tinder video chat more than any other age group. Furthermore, Tinder estimates that over 50% of its users are Generation Z.
The app continues to endear itself to Generation Z individuals. In 2021, Tinder:
Appointed a new Chief Marketing Officer in order to position itself better among Generation Z
Announced new updates including videos, live social experiences and an explore page
Several things set Tinder apart from other online dating apps. The main ones are:
The Swipe Right feature allows users to swipe right on a profile they like and left on a profile they do not like.
Tinder's Swipe Right feature, Source: Internet.
Tinder has gamified online dating with the Swipe feature since users stand a chance to earn a reward in the form of a Match whenever they swipe right.
It's a match, Tinder, Source: Internet.
Unlike other dating apps, Tinder does not filter profiles based on demographics such as height, race, religion or education
Therefore, Tinder is fun, easy to use, and inclusive.
As at July 16th 2021, Tinder was ranked 63th overall on Apple App Store and 3rd among Lifestyle app downloads.
Tinder’s ranking, Source: www.similarweb.com
Conversely, as at July 16th, Tinder has ranked position 161 overall on Google Play Store and 7th among Lifestyle app downloads.
There is no question about Tinder’s domination of the online dating app industry. With its strong targeting strategies, Tinder has grown into the most popular dating app in the world.
Additionally, the Covid-19 pandemic led to an increase in the demand for digital dating services hence fueling Tinder’s success even further.
Please comment and let us know what you think about the Tinder app, what a great app! We hope to make your app as successful as Tinder, thank you for reading this article, good luck App developers.