The Rise of Online Dating, and the Company That Dominates the Market
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The Rise of Online Dating, and the Company That Dominates the Market

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How couples meet, online dating

The Rise of Online Dating, and the One Company That Dominates the Market

Couples used to meet in real life, but now more and more people are “matching” online.

While online dating was once considered taboo, the number of couples meeting online has more than doubled in the last decade to about 1-in-5. Nowadays, you’re much more likely to meet your next partner online rather than through your family or co-workers. But don’t worry, your friends are still a good help too.

The data used in today’s chart is from the “How Couples Meet and Stay Together” survey by Stanford University. This unique dataset charts a significant shift in the way couples meet each other, and demonstrates how our changing communication habits are driving massive growth in the online dating market.

The Rise of Dating Apps

The rise of online dating in the last decade goes hand in hand with the rise of dating apps.

Tinder globally popularized app-based matchmaking when it launched on iPhones in 2012, and later on Android in 2013. Unlike traditional dating websites, which required lengthy profiles and complicated profile searches, Tinder gamified online dating with quick account setups and its “swipe-right-to-like” approach. By 2017, Tinder had grown to 57 million active users across the globe and billions of swipes per day.

Since the launch of Tinder, hundreds of dating services have appeared on app stores worldwide. Investors are taking notice of this booming market, while analysts estimate the global online dating market could be worth $12 billion by next year.

But it might surprise you that despite the growing variety of dating options online, most popular apps are owned by just one group.

The Big Business of Dating Apps: Match Group

Today, nearly all major dating apps are owned by the Match Group, a publicly-traded pure play that was spun out of IAC, a conglomerate controlled by media mogul Barry Diller.

IAC saw the online dating trend early, purchasing early online dating pioneer Match.com way back in 1999. However, with online dating shifting into the mainstream over recent years, the strategy quickly shifted to aggressively buying up major players in the market.

We’re highly acquisitive, and we’re always talking to companies. If you want to sell, you should be talking to us.

–Mandy Ginsberg, Match Group CEO

In addition to its prized app Tinder – which doubled its revenue in 2018 to $805 million – Match Group owns popular online dating services like OkCupid, Plenty of Fish, Hinge, and has even bought out international competitors like Meetic in Europe, and Eureka in Japan. The dating giant reported revenues of $1.73 billion in 2018.

match group timeline chart

According to reports, Match Group now owns more than 45 dating-related businesses, including 25 acquisitions.

As Match Group continues to swallow up the online dating market, it now boasts dating sites or apps in every possible niche – including the four most-used apps in the United States.

Match Group online dating users in U.S.

Despite Match Group’s dominant efforts, there are still two competitors that remain outside the dating giant’s reach.

The One That Got Away

In 2017, Match Group tried to acquire its last major competitor, Bumble – which had grown to over 23 million users in just three years – for $450 million. Bumble rejected the offer and by the next year, Match Group sued Bumble for patent infringement, for what some felt was a bargaining chip to force an acquisition.

Bumble responded with an ad in the Dallas Morning News denouncing Match Group: “We swipe left on your multiple attempts to buy us, copy us, and, now, to intimidate us. We’ll never be yours. No matter the price tag, we’ll never compromise our values.”

It remains to be seen if Match Group will be able to acquire Bumble, but another tech giant’s decision to launch its own dating service has also complicated Match’s conquest of the online dating market.

New Face in Town

In 2018, social media giant Facebook launched its own dating service—potentially leveraging its 2.2 billion active users—to join the online dating market.

While the announcement initially caused Match Group’s stock to drop 21%, it since has rebounded as Facebook has been slow to roll out their service.

Going forward, Match Group’s dominance may be hindered by anti-trust calls in the U.S., Bumble’s growth and direct competition to Tinder, and whether the sleeping giant Facebook can change the global online dating market with its own service.

Who will win our hearts?

Hat tip to Nathan Yau at Flowing Data, who introduced us to the data on how couples meet. His dynamic chart is worth a look as well.

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How Big Tech Revenue and Profit Breaks Down, by Company

How do the big tech giants make their money? This series of graphics shows a breakdown of big tech revenue, using Q2 2022 income statements.

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In the media and public discourse, companies like Alphabet, Apple, and Microsoft are often lumped together into the same “Big Tech” category. After all, they constitute the world’s largest companies by market capitalization.

And because of this, it’s easy to assume they’re in direct competition with each other, fiercely battling for a bigger piece of the “Big Tech” pie. But while there is certainly competition between the world’s tech giants, it’s a lot less drastic than you might imagine.

This is apparent when you look into their various revenue streams, and this series of graphics by Truman Du provides a revenue breakdown of Alphabet, Amazon, Apple, and Microsoft.

How Big Tech Companies Generate Revenue

So how does each big tech firm make money? Let’s explore using data from each company’s June 2022 quarterly income statements.

Alphabet

breakdown of Alphabet's revenue streams and profit

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In Q2 2022, about 72% of Alphabet’s revenue came from search advertising. This makes sense considering Google and YouTube get a lot of eyeballs. Google dominates the search market—about 90% of all internet searches are done on Google platforms.

Amazon

breakdown of amazon's revenue streams and profit

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Perhaps unsurprisingly, Amazon’s biggest revenue driver is e-commerce. However, as the graphic above shows, the costs of e-commerce are so steep, that it actually reported a net loss in Q2 2022.

As it often is, Amazon Web Services (AWS) was the company’s main profit-earner this quarter.

Apple

breakdown of Apple's revenue streams and profit

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Apple’s biggest revenue driver is consumer electronics sales, particularly from the iPhone which accounts for nearly half of overall revenue. iPhones are particularly popular in the U.S., where they make up around 50% of smartphone sales across the country.

Besides devices, services like Apple Music, Apple Pay, and Apple TV+ also generate revenue for the company. But in Q2 2022, Apple’s services branch accounted for only 24% of the company’s overall revenue.

Microsoft

breakdown of Microsoft's revenue streams and profit

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Microsoft has a fairly even split between its various revenue sources, but similarly to Amazon its biggest revenue driver is its cloud services platform, Azure.

After AWS, Azure is the second largest cloud server in the world, capturing 21% of the global cloud infrastructure market.

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Animation: The Most Popular Websites by Web Traffic (1993-2022)

This video shows the evolution of the internet, highlighting the most popular websites from 1993 until 2022.

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ranking websites by page views 1993-2022

The Most Popular Websites Since 1993

Over the last three decades, the internet has grown at a mind-bending pace.

In 1993, there were fewer than 200 websites available on the World Wide Web. Fast forward to 2022, and that figure has grown to 2 billion.

This animated graphic by James Eagle provides a historical look at the evolution of the internet, showing the most popular websites over the years from 1993 to 2022.

The 90s to Early 2000s: Dial-Up Internet

It was possible to go on the proto-internet as early as the 1970s, but the more user-centric and widely accessible version we think of today didn’t really materialize until the early 1990s using dial-up modems.

Dial-up gave users access to the web through a modem that was connected to an active telephone line. There were several different portals in the 1990s for internet use, such as Prodigy and CompuServe, but AOL quickly became the most popular.

AOL held its top spot as the most visited website for nearly a decade. By June 2000, the online portal was getting over 400 million monthly visits. For context, there were about 413 million internet users around the world at that time.

RankWebsiteMonthly Visits (May 2000)
1AOL400,891,812
2Yahoo387,573,587
3MSN354,239,803
4eBay116,101,785
5Lycos116,064,930

But when broadband internet hit the market and made dial-up obsolete, AOL lost its footing, and a new website took the top spot—Yahoo.

The Mid 2000s: Yahoo vs. Google

Founded in 1994, Yahoo started off as a web directory that was originally called “Jerry and David’s Guide to the World Wide Web.”

When the company started to pick up steam, its name changed to Yahoo, which became a backronym that stands for “Yet Another Hierarchical Officious Oracle.”

Yahoo grew fast and by the early 2000s, it became the most popular website on the internet. It held its top spot for several years—by April 2004, Yahoo was receiving 5.6 billion monthly visits.

RankWebsiteMonthly Visits (April 2004)
1Yahoo5,658,032,268
2MSN1,838,700,057
3Google1,318,276,780
4AOL905,009,947
5eBay805,474,705

But Google was close on its heels. Founded in 1998, Google started out as a simpler and more efficient search engine, and the website quickly gained traction.

Funny enough, Google was actually Yahoo’s default search engine in the early 2000s until Yahoo dropped Google so it could use its own search engine technology in 2004.

For the next few years, Google and Yahoo competed fiercely, and both names took turns at the top of the most popular websites list. Then, in the 2010s, Yahoo’s trajectory started to head south after a series of missed opportunities and unsuccessful moves.

This cemented Google’s place at the top, and the website is still the most popular website as of January 2022.

The Late 2000s, Early 2010s: Social Media Enters the Chat

While Google has held its spot at the top for nearly two decades, it’s worth highlighting the emergence of social media platforms like YouTube and Facebook.

YouTube and Facebook certainly weren’t the first social media platforms to gain traction. MySpace had a successful run back in 2007—at one point, it was the third most popular website on the World Wide Web.

RankWebsiteMonthly Visits (Jan 2007)
1Google7,349,521,929
2Yahoo5,169,762,311
3MySpace1,276,515,128
4MSN1,259,467,102
5eBay957,928,554

But YouTube and Facebook marked a new era for social media platforms, partly because of their ​​impeccable timing. Both platforms entered the scene around the same time that smartphone innovations were turning the mobile phone industry on its head. The iPhone’s design, and the introduction of the App store in 2008, made it easier than ever to access the internet via your mobile device.

As of January 2022, YouTube and Facebook are still the second and third most visited websites on the internet.

The 2020s: Google is Now Synonymous With the Internet

Google is the leading search engine by far, making up about 90% of all web, mobile, and in-app searches.

What will the most popular websites be in a few years? Will Google continue to hold the top spot? There are no signs of the internet giant slowing down anytime soon, but if history has taught us anything, it’s that things change. And no one should get too comfortable at the top.

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