Courtland Brooks Press – Page 9 – Online Personals Watch

It’s Harder To Turn Profit In The Online Dating Business

Posted on June 12, 2015

WSJ – June 10 – Dating sites in the U.S. are expected to make $1.17B and dating apps $628.8M this year, up from $1.08B and $572M respectively in 2014, according to IBISWorld. “There are too many players and not a lot are generating sufficient revenue,” said Britanny Carter, analyst for IBISWorld. Even major players are under pressure: Zoosk withdrew its plans for an IPO and laid off 15% of its staff. Grindr recently hired investment bank Raine Group to help it find a buyer. But Grindr CEO Joel Simkhai said his service is profitable. Most of the apps that are generating revenue with a combination of ads and freemium features. Users still pay to join some dating sites because it allows them to meet others who have chosen to pay to meet people as well. "It demonstrates a lot of commitment when someone has put a coin on the table," said Mark Brooks, CEO of Courtland Brooks, a company that helps dating companies with business development. eHarmony logged ~$275M in revenue, its highest level in several years.

by Georgia Wells
See full article at WSJ

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Can Tinder-Plus Lead IAC Much Higher?

Posted on April 30, 2015

THESTREET – Apr 29 – According to analysts Tinder Plus should push IAC's stock past $80 and make up for declines in other businesses. "This is a game of critical mass, and they have it," said Mark Brooks, CEO of online-dating consultancy Courtland Brooks. "Tinder could generate ~$12M per quarter," says Barclays analyst Chris Merwin. Brooks believes Tinder should bring in more money from subscriptions than from ads. IAC doesn't release Tinder Plus subscriber figures, but it said subscriptions in its dating business grew 16% in Q1 while revenue increased 2%. Some estimates peg Tinder users at ~24M. The app has been downloaded ~40M times. Brooks said the pay service should by nature hold down some growth. "The reason they have started charging this early is that they can't let mobile dating become entirely free. If the free category as a whole gets too big, it kills market for them. It is strategically critical that they don't let mobile dating be too free. They needed to at some point start branding. It's the brand leader that will win this game," Brooks said.

by Eric Kelsey
See full article at TheStreet

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Would You Buy Shares In Ashley Madison?

Posted on April 24, 2015

MARKETWATCH – Apr 23 – Avid Life Media, the parent company of Ashley Madison, hopes to raise $200M in an IPO in London later this year. Ashley Madison makes up ~70% of Avid's $150M annual revenue, says Noel Biderman, CEO of the site. AM alone has ~33M members worldwide with 2.3M active users. The IPO plans may be mere flirtation with the media or a way to attract a suitor keen to invest. AM has little direct competition. "The entire business is built on the premise that few will follow," says Mark Brooks, a dating-industry analyst and the editor of Online Personals Watch. "It’s simultaneously brilliant and despicable. It gets people talking, which is also good for business."

by Quentin Fottrell
See full article at MarketWatch

Mark Brooks: I can't quite see investors voting this one up. But I could be very wrong. It will be a fascinating experiment in public acceptance. Is philandering and lying in vogue? Will it be palatable in the financial community. God, I really hope not. As much as it might be a part of daily life for many. I think we need to be more honest and open. I refuse to accept that society accepts 'cheating.' It seems to be the antithesis of where trusting, loving relationships that produce loving families, should end up. Noel knows this. But money is blinding, and plentiful in the philanderers niche.

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Dating Ring Blends Old-Fashioned Matchmaking And Algorithms

Posted on April 23, 2015

NY TIMES – Apr 22 – In 2013, Lauren Kay and Emma Tessler started Dating Ring, a group dating service. They were charging $20 per person per date. But soon, sales had started to flatten, and scheduling dates was a nightmare. They decided to switch to a one-on-one dating model. "We had $7K in sales within 24 hours," Ms. Kay said. Dating Ring uses an algorithm to generate matches and then a matchmaker combs through those to hand-select dates. Mark Brooks, an Internet dating analyst and consultant, said although there is still plenty of interest in online dating, people also want relationships that begin based on more than your gut reaction to a photo. "This model of merging of Internet and matchmakers is very new," he said. Life Change Holdings manages local matchmaking businesses that use a website, like OhioSingles.com or CharlotteMatchmakers.com, for leads. The services cost $3,5 – $10K and Life Change Holdings revenue has grown from $2.5M in 2012 to $14.5M in 2014, said Bill Broadbent, the company’s founder and CEO. He projects ~$20M in 2015. Dating Ring now charges $240/3 month that brings in revenue of $35K/month.

by Eilene Zimmerman
See full article at NY Times

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Craigslist: A Dangerous Way For People To Seek Relationships

Posted on April 20, 2015

WASHINGTON POST – Apr 20 – David Messerschmitt, the intellectual-property lawyer, was found stabbed to death inside a room at a hotel in Washington after he had posted on Craigslist seeking sex with men. Craigslist grew to be one of the largest players in online dating for men. The secrecy meshed well for men in the closet or those seeking immediate sex. "That was exciting. That was discovering. That was also very dangerous," said Mark Brooks, a longtime online dating consultant and president of the Internet Dating Executive Alliance. Although Craigslist's anonymity can make it a draw for predators, Jonathan Crutchley, a founder of Manhunt, said all online dating sites have deceptive users looking to commit crimes. "It's the dark side of the business, but it's the truth."

by Dan Morse & Mary Pat Flaherty
See full article at Washington Post

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20 Years Of Online Dating

Posted on April 7, 2015

LA TERCERA – Mar 28 - Match.com launched 20 years ago. In 1995, there were only 16 dating services. Today there are 8K dating sites and apps. "Everyone knows someone who has been successful on a dating site. Online dating has been accepted by the society as something that works", says Mark Brooks, consultant and expert in the online dating business.

Match.com launched in Chile in 2005. 5 years later, the site claimed 500K registered users. Today, the number is 1.3M. Match.com was not the only company that saw the potential in Chile. German based dating site eDarling followed in 2011. "The growth rate is higher than most EU countries", said Sara Grana, country manager of eDarling Chile.

"People don't really know what they want and they don't describe themselves accurately", says Mark Brooks. Reliance on profiles is one of the main criticisms of scientists towards online dating algorithms. Eli Finkel, professor of social psychology at Northwestern University, published an analysis. He says that there is no certainty that these algorithms work. He adds that key aspects of relationships, such as communication patterns and sexual compatibility, arise only after two people meet.

by José Miguel Jaque & Noelia Zunino
The full article was originally published at La Tercera, but is no longer available.

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Tinder Begun Offering Tinder Plus

Posted on March 2, 2015

WSJ – Mar 3 – Tinder Plus is a premium service that is the dating app’s first effort to generate revenue. Tinder also plans to introduce ads by the end of the month. The price will vary based on a user’s location and age. In U.S. the price will be $9.99 per month, although some users will be asked to pay as much as $19.99 monthly. In developing countries, the service will cost $2.99 per month. Mark Brooks, CEO of Courtland Brooks, an advisory firm for dating companies, said Tinder will likely make money from subscriptions than from ads. “Tinder should be able to make tens of millions from ads, but they’ll earn more from the subscriptions to allow users to nix the ads, and be able to determine their location and being able to undo swipes,” Brooks said.

by Georgia Wells
See full article at WSJ

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Tinder Plus Is Coming But Will Users Pay For It?

Posted on February 25, 2015

BLOOMBERG – Feb 25 – “All eyes are on Tinder right now,” said Mark Brooks, a dating-website analyst and consultant. “They’ll set the tone for monetization.” Tinder has been testing Tinder Plus, which also lets people swipe for matches around the world, at different prices up to $20 a month, depending on the features. Sam Yagan, CEO of IAC’s personals division, said it’s fine even if there isn’t widespread adoption of Tinder Plus. “The vast majority of people will decide not to use it,” Yagan said. “We’re in the first inning on monetization. We’re trying to figure out which features users care about.” Tinder could bring in $45M in revenue in 2015, Oppenheimer & Co. estimates.

by Annie Massa
See full article at Bloomberg (under subscription)

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‘The League’ Dating App Is For Successful People

Posted on February 19, 2015

WSJ – Feb 19 – The League, which launched in January and has raised $2.1M is for people who are “too popular as it is,” according to its site. 30% of the app’s users have advanced degrees, and 18% are executives, VPs or founders, according to The League’s founder and CEO Amanda Bradford. The app has a long wait list. 80K people currently are waiting for admission. The League isn’t the only player trying to get a piece of the more than $2B that the online dating industry is worth in the U.S., estimates Mark Brooks, CEO of Courtland Brooks, a firm that helps dating companies with business development and media relations. Bradford claims The League’s market lies somewhere between those of staid Match or eHarmony, and Tinder. “The goal is to keep The League well-balanced, diverse and classy,” Bradford says.

by Georgia Wells
See full article at WSJ

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Online Dating Odds Getting Better

Posted on February 2, 2015

UT SAN DIEGO – Jan 26 – Online dating has a reputation for failing but the odds are improving with new startups entering the market, such as SingldOut, Wyldfire and Neqtr. SingldOut, a service that uses LinkedIn and DNA to predict matches, raised $600K last year. Wyldfire, an app that lets the women vet and pick which men are allowed into their dating community, just raised $450K. "It's very inspirational to see all these newcomers, because we haven't had enough innovation in this industry," said Mark Brooks, an online dating analyst and consultant. The matchmaking industry has been behind the technology curve for years, he said. "People like Internet dating, because it gives them more options and lets them get the tough questions out of the way up front." The market is full. "It’s a very sexy business", said Brooks. "Singldout is interesting because of the LinkedIn login…not so much the DNA, because that's been done before and it failed because it was too expensive," he said. "Wyldfire probably has the most promise because it gets at the authentication and validation that's currently missing from most sites. Women are pretty good at weeding out the creeps. I like Neqtr because of the donation element. They're getting people at their point of passion, which is helping people, and I think this is a very good matchmaking criteria. I think it will be streamlined, and they won't need quite so many people to grow," said Mark Brooks.

by Katherine P. Harvey
See full article at UT San Diego

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