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Revenue dipped in 2009 but just hit the 0 million mark in 2010. 1 spot when you Google "online dating." Tech Crunch reports Match wanted to acquire a younger userbase, and according to IAC, OKCupid has "been the fastest growing dating site in the advertising-based category." Did you hear that? Otherwise sensible filtering criteria, like who you know in common, is not possible in a world of usernames, so you're left with "10 miles from 10005" and mysterious matchmaking algorithms. Match historically spends about half its revenue on advertising to bring new users in the door (and through the subscription pay wall). IAC also set up a joint venture with Meetic in Latin America and bought Singlesnet in 2010. They've grown entirely by word of mouth -- and just announced they're about to go straight, too. The only dating sites that will survive in spite of the social graph will be the adult dating sites.
OKCupid is also a dating site, a lot like Match actually, but best known for: Being slightly cooler. "Advertising-based category" is code for "also pays to acquire users," "does not grow organically" and "not a social network." See, despite the undeniable fact that the social era has arrived -- mutual friends, followers, first-degree connections, APIs -- the dating sites wallow in primordial username soup (so that's where you've been hiding, nycprince03! Usernames are why dating sites can't grow on their own, like social networks. They added 5.4 million paying members in 2009 and 6.9 million of them in 2010. Which brings us back to the OKCupid acquisition, which I predict will to have the rejuvenating effect of a spray tan, which should be cause for concern. Guess how much Grindr spent to acquire over 1 million users across 180 countries in less than two years? That's the one place you don't want your friends, or your partner, or your family to join you.
They won't hook up to the social graph but they'll pay for ad impressions on Facebook that convert to signups that create usernames and unplug from the social graph.
Maybe they should have tried to buy Grindr instead. It's a "location-based mobile app" better known as the app straight people are jealous of.