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That high subscriber-acquisition cost leaves the door open for free sites such as OKCupid to undercut the market. Yagan refers to his site as an "online bar" where visitors can enter freely, socialize with friends, and size up their potential mates by answering questions and completing personality quizzes developed by the company alone or in conjunction with marketers. Chap Stick, for example, hosted a popular "Kissing Test" that informed test-takers about how their kissing styles fared with those of others on the site. Frind said just over 50% of his ad sales come from marketers he negotiates with directly and the rest come from Google Ad Sense.
He said that works for him, because Match subscribers then talk up his free site.
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According to online-dating-industry consultant Dave Evans, the average online dater pays $100 and stays with a site for four months, contributing to a $1 billion industry.
Match had 1.3 million paying subscribers as of its fourth-quarter report (e Harmony is privately held and declined to share its information).
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But it's getting increasingly difficult to increase these numbers.
Match, for one, has spent more than 0 million in measured media in the past three years, according to TNS Media Intelligence, but has increased its paid-subscriber base from only 1.2 million to 1.3 million. Since September, the site has brought onboard Chap Stick, Colgate-Palmolive and TV network ABC as clients and is working with them to develop branded content.
As it turns out, the subscription-based titans of online dating, IAC's Match and e Harmony, are not as vulnerable to social networks as once feared.Tags: Adult Dating, affair dating, sex dating