The crisis in the tech industry continues and this time affects the love business. Match Group, which owns dating apps like Tinder, Meetic, OK Cupid, and Hinge, announced last February that it laid off 200 workers from its entire workforce, or 8% of its entire workforce, worldwide.

Reasons include poor economic results and poor performance of Tinder, the most used digital matchmaker. That’s why Match Group developed a strategy with two goals: attracting new users, especially among the younger generation, and controlling the rise of Bumble.

wolf ears. Match Group CEO Bernard Kim reported at a telematics meeting a few weeks ago that 2022 will be a tough year with results below expectations. Despite the company’s current financial discipline, Match Group needs to take “decisive steps” toward restructuring to ensure long-term economic growth, according to Kim.

Less income. Likewise, in a letter addressed to the company’s shareholders, signed by Match Group CEO and CFO Bernard Kim and Gary Swilder, respectively, the company reported revenue of $3.2 billion last year, up 7% year-on-year, but “far more than originally planned by the company.” under”.

Poor Tinder performance. In this sense, Metin added that the reasons for this decrease were due to the macroeconomic effects in the foreign exchange market, the decrease in consumption and the weakening of Tinder in its efficient operation more than expected. intensified as the year progressed. That’s why the company has announced a new plan to improve the performance of the app.

More marketing. Match Group said Tinder will launch its first “global marketing campaign” this year. The firm noted that the world’s most downloaded dating app has grown rapidly thanks to word of mouth, so there was never a need to create a marketing strategy for Tinder.

for young But now the situation has changed and the most popular digital matchmaker is failing to convince the younger generation. Herein lies the challenge of persuading Generation Z, as Gary Swidler pointed out in an article published by the Financial Times last August.

Fewer people attend. Additionally, in the same Financial Times article, Swidler noted that the number of new registered users has not returned to pre-pandemic levels. “New users are challenging,” he added, noting that the company had to offer something new to entice them to use the app. This is one of the reasons for this slowdown in Match Group dating apps: those who want to use them already have them, and those who were previously uninterested no longer have them.

From the “Guadiana effect” to the economic crisis. Accordingly, Borja Adsuara, a law, strategy and digital communications specialist at Villanueva University, recently pointed to Cadena Ser two more reasons for Match Group’s downfall. On the one hand, the “Guadiana effect” in the context of the generalization of the application in question, i.e. people who use the ‘app’ in question for a while and stop using it until they return after it has achieved its purpose. search for new flirt On the other hand, the economic crisis that has reduced the possibilities of users to pay for the improved version of the applications.

A tough competitor. With Match Group calculating an estimated $6 million loss in 2023, dating app Bumble, founded by Whitney Wolfe Herd (co-founder of Tinder), looks to be on the right track. The firm’s latest economic report stated that revenues increased by 16.7% and the number of users using the paid version increased by 14.4%. Tinder’s strategy this year has one goal: to contain Bumble’s growth.

Love is not easy. In short, Match Group ran into an unexpected situation where Bumble took a piece of the cake. Freddy Mercury said he wouldn’t give up in Somebody to Love. We’ll see if Tinder can survive the defeat.

Image: Good Faces Agency / Unsplash

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