Social Discovery Ads are exactly what they sound like: Visually-interesting advertisements that look and feel organic to the user experience. For Match Group, these ads aren’t unique because of their content, but because they have the potential to put more money in Match Group’s pockets.
That said, the company has long expressed its independence from advertising revenue. “Our revenue model is overwhelmingly subscription-based, with less than 3% of our revenue coming from advertising sales,” according to Match Group’s privacy policy.
But this percentage might be on the verge of rising, if reporting from several business publications is accurate. Although Match Group has not officially announced any changes to its advertising strategies, some users have taken note of Match Group’s increasingly subtle social discovery ads.
“The reason our advertising revenue is so low compared to virtually all other online providers is that we unilaterally and purposefully limit the types of data we use for advertising purposes,” Match Group claims in its privacy policy. But rising dating fatigue may make advertising revenue more appealing to Match Group.
As Fatigue Grows, Could Advertising Become A New Revenue Stream?
If Match Group expands its social discovery ads, advertising could become a more meaningful complement to its subscription business. That may prove increasingly valuable as the company looks to diversify revenue while navigating slower payer growth.
At this point, clicking “skip ad” is pretty much a biological instinct. I feel an automatic surge of annoyance when skipping an advertisement isn’t an option. Scrolling through dating apps can be a vulnerable experience, and adding intrusive pop-ups to the mix might not help.
This is why Match Group blends ads seamlessly into the UX. On Tinder, you may not realize a profile is really just an advertisement until you see the words “Sponsored Post.”
Match Group will have to pay attention to the way its ads are presented to the user. The beauty of social discovery ads are that they are, by definition, something users stumble upon, not something that gets shoved into their faces.
Grindr users, for example, have long complained about the app’s obtrusive ads. “The ads are now appearing while I’m typing a message in some sort of round-about, vulture way to get me to click on the ad, like I’m some sort of moron,” one Grindr user wrote on Reddit.
As we await Match Group’s Q2 earnings report, which is slated for publication on August 4, we can’t help but wonder if these rumors are true — if Match Group really is investing more heavily into not just advertising, but overall social discovery. If so, it could mean more money for Match Group and more annoyance for users.
