Online dating advertising revenue
The Decision Yagan and Coyne decided that the potential rewards of press coverage and increased Web traffic from a blind-dating site outweighed the benefits of buying advertisements or developing more features for Ok Cupid.
They began work on Crazy Blind in July 2007 and assigned three of the company's nine engineers to build the website.
This statistic gives information on the mobile dating market revenue in the United States from 2009 to 2011 with forecast until 2017.
The “Revenue” box shows the forecasted revenue development of the selected market (market segment, region) in million US dollars for each year.
Now Yagan had set out to bring to online dating, a growing market dominated by a number of, as Yagan saw them, expensive and unsatisfactory competitors like IAC's (NYSE: IACI)
Yagan figured he could inflict serious damage on Match, the industry giant with 2007 revenue of 9 million, and other big subscription sites such as e Harmony and JDate by using the same strategy he employed with Spark Notes.
It severely limited the amount of information users could see about prospective dates.Coyne and Yagan could try fighting back with an ambitious advertising campaign, but Yagan wasn't sure what it should look like. You might think Google (NASDAQ: GOOG), but Match is willing to spend well over per subscription." A quirky dating site seemed like a perfect fit for a guerrilla marketing campaign, but a test run, in which Coyne and Yagan spent ,000 to distribute 10,000 red roses in Boston, yielded few users. A second possibility was to embrace Facebook rather than compete against it."Any place you might advertise to attract daters, someone's already there," he says. In May, Facebook founder Mark Zuckerberg announced that outside software developers could build programs, called widgets, that would operate within his company's wildly popular social network."Men will look at this and say, 'Sweet; I can get a woman delivered to me,' " says Yagan. This way they'll only need to bring half a canister of mace." To further mollify wary users, he also set up a text messaging system that routed messages through his company's servers.That way daters could contact one another without exchanging phone numbers.