Online dating is even more popular than one may think. According to Match.com, the U.S. Census Bureau estimates that there are more than 100 million single Americans, or about 44% of the population.
The website StatisticsBrain.com issued research at the start of 2014, showing the number to be smaller at 54.3 million, but both websites agree that in excess of 40 million Americans have tried online dating. Match.com and eHarmony.com control the lion’s share of members with 21.6 million and 15.5 million members, respectively, although it’s presumable that many of those members are part of both websites. Statistics Brain lists the average amount spent by an online dating customer at $239 U.S. per year and annual revenue for the industry at $1.25 billion U.S. Estimates project that figure to rise to $2.1 billion U.S. in 2014. Overall, the online dating marketplace is estimated to be an $82-billion U.S. industry.
The process seems to be effective, as CNBC reported in March that market data suggests up to one-third of married couples now meet online. Simply, the rise in social media has removed any stigma attached to online dating and opened people to the idea of posting information online.
Looking to get a piece of the market and build its brand, the aptly named iHookup Social, Inc. (OTCQB:HKUP) has built its application not only to play matchmaker, but also retain users to ongoing communications. This is different from rivals, such as match.com or zoosk.com, that help people connect, but really aren’t incentivized to stick around after the connection.
iHookup Social uses GPS and proximity-based technologies to facilitate connections in real time by making recommendations for dating, friends, organizations. Offering free and subscription memberships, the application also offers a “virtual currency” component, allowing users to purchase “in application” coin packs that activate virtual gifts and various service-based options.
Thrown into the mix is a growing list of strategic partners and advertising by brands and local establishments targeting users in close proximity, helping to grow the brand and offer users a better experience.
The company became the public entity it is today through a reverse merger with Titan Iron Ore in February, completing the name and ticker change and one-for-20 reverse split in April.
Throughout the process, Campbell, California-based iHookup has penned advertising deals, launched a television ad campaign and climbed the ranks of social networking applications. Last week, the company, said its app broke into the Top 30 with a #29 rank in Apple’s App Store. The app is currently only available for iOS operating systems.
On Tuesday, iHookup released its latest market stats, reporting that the iHookup Social app had 75,065 new downloads in June in the Apple App Store, bringing its total to 257,316 total registered users. As a point of reference, in January, there were 7,406 new downloads and the user base stood at 120,148.
"It's affirming to see our momentum continue, fueled undoubtedly by our Summer of Good Times promotion and our national television campaign," stated Robert Rositano Jr., CEO, iHookup Social, in a statement. "We expect these new users to translate into top line growth as we execute our monetization strategies," he added.
Converting users to revenue is, of course, the challenge. During the first quarter, revenue was $8,694 in January, and then slipped to $7,605 in February before rebounding to $10,909 in March for a total of $27,208 for the quarter. Operating expenses were $644,630 and other expenses totaled $293,750 for a net loss of $911,172 for the quarter.
Opportunities in the online dating and social networking space are tremendous, to say the least, but market penetration for startups can be equally difficult. App downloads are clearly rising and now investors will be watching to see if subscriptions can grow as well and if the plans to foster member retention come to fruition. Shares are trading flat at 3.2 cents in Tuesday trading. Proper due diligence is, as always, encouraged.
