Cookie and Privacy Settings

This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge.com. You can choose to activate only essential cookies or all cookies. You can always change your preference in the cookie and privacy settings. This link can also be found in the footer of the site. If you need more information, please visit our privacy policy.

Data processing in the USA: By clicking on "I accept", you also consent, in accordance with article 49 paragraph 1 sentence 1 lit. GDPR, to your data being processed in the USA (by Google LLC, Facebook Inc., LinkedIn Inc., Stripe, Paypal).

Manage settings individually I accept
expert
Expert with best answer

Raj

100% Recommendation Rate

52 Meetings

868 Q&A Upvotes

USD 169 / Coaching

8

Why did Facebook enter the dating market?

I doubt FB will ever charge users for dating like tinder etc. I am assuming they did this because it aligns with their mission to bring the world closer together? What would be a good way to structure this?

I doubt FB will ever charge users for dating like tinder etc. I am assuming they did this because it aligns with their mission to bring the world closer together? What would be a good way to structure this?

(edited)

8 answers

  • Upvotes
  • Date ascending
  • Date descending
Best Answer
Book a coaching with Raj

100% Recommendation Rate

52 Meetings

868 Q&A Upvotes

USD 169 / Coaching

Many great answers here already.

If I was stepping back from the immediate question, I would suggest examining Facebook's rationale for any new product it launches.

What is the purpose? Why does it continue launching and acquiring?

Fundamentally, you can reframe Facebook's strategy to be around maintenance vs. growth, given its position on the s-curve of mass adoption. It is clear from Facebook's history of recent acquisitions, Zuckerberg is very well aware of the innovator's dilemma, and attempting to disrupt the core business and diversify at the same time.

For example, with WhatsApp (a closed P2P network), or Instagram (a separate photo sharing platform i.e. usurping what was Facebook's original raison d'etre).

Why?

What is the greatest existential threat to Facebook maintaining its scale and dominance? Losing relevance.

Any network can only remain relevant so long as it delivers value to all members on an ongoing basis. A loss of relevance occurs through 1000 cuts, not 1.

This I would imagine would be a core concern in the minds of FB's board, major shareholders and the ExecCo.

One form of relevance is maintaining a moat from network effects, but Facebook's biggest issue at present is churn and the distribution of its network skewing away from the early adoptors and cultural influencers.

Will the launch of a dating product (albeit a generic one, just on Facebook), mean it increases engagement with a highly valuable demographic for advertisers and reduces churn due to lock-up on the network? Possibly.

Are there likely to be strong data crossovers from a richer social graph if combined with dating patterns? Highly likely.

Will 18-34yo adopt Facebook dating when they've been slowly transitioning off the platform as its been unbundled over the past 3-5 years? Time will tell.

Many great answers here already.

If I was stepping back from the immediate question, I would suggest examining Facebook's rationale for any new product it launches.

What is the purpose? Why does it continue launching and acquiring?

Fundamentally, you can reframe Facebook's strategy to be around maintenance vs. growth, given its position on the s-curve of mass adoption. It is clear from Facebook's history of recent acquisitions, Zuckerberg is very well aware of the innovator's dilemma, and attempting to disrupt the core business and diversify at the same time.

For example, with WhatsApp (a closed P2P network), or Instagram (a separate photo sharing platform i.e. usurping what was Facebook's original raison d'etre).

Why?

What is the greatest existential threat to Facebook maintaining its scale and dominance? Losing relevance.

Any network can only remain relevant so long as it delivers value to all members on an ongoing basis. A loss of relevance occurs through 1000 cuts, not 1.

This I would imagine would be a core concern in the minds of FB's board, major shareholders and the ExecCo.

One form of relevance is maintaining a moat from network effects, but Facebook's biggest issue at present is churn and the distribution of its network skewing away from the early adoptors and cultural influencers.

Will the launch of a dating product (albeit a generic one, just on Facebook), mean it increases engagement with a highly valuable demographic for advertisers and reduces churn due to lock-up on the network? Possibly.

Are there likely to be strong data crossovers from a richer social graph if combined with dating patterns? Highly likely.

Will 18-34yo adopt Facebook dating when they've been slowly transitioning off the platform as its been unbundled over the past 3-5 years? Time will tell.

Book a coaching with Axel

100% Recommendation Rate

49 Meetings

811 Q&A Upvotes

USD 179 / Coaching

I agree with Vlad's analysis.

It is a very complementary business that can be monetized in many different ways. They can charge directly for the service or for premium features that are rolled out over time and leverage the product to create additional advertising space.

As you say it fits in with their mission of bringing people together but these kinds of decisions are made based on profit potential. The fact that it is highly complementary to its existing product means that the likelihood of success is high.

Another interesting angle for Facebook is likely also the additional data that they can collect from the dating product. As you probably already know they already use the data you enter to create the most targeted advertising product out there today.

I agree with Vlad's analysis.

It is a very complementary business that can be monetized in many different ways. They can charge directly for the service or for premium features that are rolled out over time and leverage the product to create additional advertising space.

As you say it fits in with their mission of bringing people together but these kinds of decisions are made based on profit potential. The fact that it is highly complementary to its existing product means that the likelihood of success is high.

Another interesting angle for Facebook is likely also the additional data that they can collect from the dating product. As you probably already know they already use the data you enter to create the most targeted advertising product out there today.

Yes, but having worked in tech companies in bay area, I know very well that FB particularly is a very mission driven company and money is secondary for them. I spoke to one my ex colleagues at FB now and it was indeed an engagement play. I was particularly looking for the best way to structure my answer, I am confident that this product decision was based on the companies mission and monetization is side benefit but not the primarily goal. — PK on Apr 03, 2020 (edited)

Okay it is fair but then how is user engagement not tied to monetization then if looking at this from the facebook platform perspective and not a product perspective? A rough structure could then incorporate a) monetisation from increased engagement and subsequent reduced churn b) any monetisation from new user growth c) impact on company mission — Axel on Apr 03, 2020 (edited)

Monetization is a side effect of product engagement, not a primary objective. A lot of FB products don't make any money - such as live, watch etc. which are operationally extremely expensive. The main reason for building them is increase user connection and ads comes in only when it doesn't diminish user engagement. If you look at FB daily active and monthly active users, it has only gone up YoY despite introducing ads product and that is because they prioritize user experience. — PK on Apr 03, 2020 (edited)

Book a coaching with Vlad

97% Recommendation Rate

406 Meetings

11,404 Q&A Upvotes

USD 239 / Coaching

Hi,

It's an additional revenue stream (a very good one if you look at the financials of the dating apps) with very low extra costs for them (since they already have the users on their platform). + they can drive engagement (that is declining overall) and new younger users (since the dating apps users are on multiple apps)

Best

Hi,

It's an additional revenue stream (a very good one if you look at the financials of the dating apps) with very low extra costs for them (since they already have the users on their platform). + they can drive engagement (that is declining overall) and new younger users (since the dating apps users are on multiple apps)

Best

I doubt FB will ever charge users for dating like tinder etc. I am assuming they did this because it aligns with their mission to bring the world closer together? What would be a good way to structure this? — PK on Apr 03, 2020

Book a coaching with Clara

100% Recommendation Rate

55 Meetings

14,641 Q&A Upvotes

USD 229 / Coaching

Hello!

It´s easy to analyse if it was a business case:

  • Profitability: it´s a new revenue stream that has little implementation cost. Furthermore, you already have what strategically is most important: the client base. Hence, it´s a "natural step"
  • Strategy: diversifying portofolio with new revenue streams, etc.

Hope it helps!

Cheers,

Clara

Hello!

It´s easy to analyse if it was a business case:

  • Profitability: it´s a new revenue stream that has little implementation cost. Furthermore, you already have what strategically is most important: the client base. Hence, it´s a "natural step"
  • Strategy: diversifying portofolio with new revenue streams, etc.

Hope it helps!

Cheers,

Clara

Book a coaching with Antonello

98% Recommendation Rate

154 Meetings

5,270 Q&A Upvotes

USD 219 / Coaching

Hi, I think in the discussion all the aspects have been covered. As first, always think about profits, then of course the synergies with all their related platforms are crucial

Best,
Antonello

Hi, I think in the discussion all the aspects have been covered. As first, always think about profits, then of course the synergies with all their related platforms are crucial

Best,
Antonello

Hi

Facebook strategy is clearly to gather a highly consequent part of the online traffic.

I would go for following structure

A) Analysis of the online traffic (with a gap analysis with what Facebook did)

B) Opportunity to integrate the dating market (revenue, client experience, ...)

Best

Hi

Facebook strategy is clearly to gather a highly consequent part of the online traffic.

I would go for following structure

A) Analysis of the online traffic (with a gap analysis with what Facebook did)

B) Opportunity to integrate the dating market (revenue, client experience, ...)

Best

Book a coaching with Viktor

0 Meetings

12 Q&A Upvotes

USD 269 / Coaching

Hi

I agree with the comments of the people below. But I want to add a very important fact: Facebook did market research and found out that 52% of users of Facebook are single. That is why Facebook took the decision to enter this very lucrative business segment and make an offer to its own users.

Hi

I agree with the comments of the people below. But I want to add a very important fact: Facebook did market research and found out that 52% of users of Facebook are single. That is why Facebook took the decision to enter this very lucrative business segment and make an offer to its own users.

Book a coaching with Daniel

100% Recommendation Rate

212 Meetings

1,080 Q&A Upvotes

USD 369 / Coaching

Hi again,

If you are sure that they have done it because of their mission to “bring the world closer together” and that monetary aspect is always secondary for them, then dating functionality has a positive affect on 4 areas connected with that mission:

  • Creating distinct memories for users – you hardly ever forget where and how you’ve met your best hookup and or your future wife/husband, so FB will be associated with these memories
  • Establishing Facebook as platform to bring out the best in people (friendship AND love)
  • Increasing existing users engagement – FB as an ultimate platform to connect with friends, but also to find the loved ones
  • Getting younger audiences on the platform – FB is not that popular for 18-21 year olds –> this is one of the ways to fix it

I hope this is now the right focus.

Best,
Daniel

Hi again,

If you are sure that they have done it because of their mission to “bring the world closer together” and that monetary aspect is always secondary for them, then dating functionality has a positive affect on 4 areas connected with that mission:

  • Creating distinct memories for users – you hardly ever forget where and how you’ve met your best hookup and or your future wife/husband, so FB will be associated with these memories
  • Establishing Facebook as platform to bring out the best in people (friendship AND love)
  • Increasing existing users engagement – FB as an ultimate platform to connect with friends, but also to find the loved ones
  • Getting younger audiences on the platform – FB is not that popular for 18-21 year olds –> this is one of the ways to fix it

I hope this is now the right focus.

Best,
Daniel

Related case(s)

Bain case: Asian lubricants producer

Solved 158.7k times
Bain case: Asian lubricants producer LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). According to preliminary examinations, further growth potentials in the Asian core market are rather limited. Thus LubricantsCo would like to investigate options to internationalize in the passenger car business – also outside the premium segment which is given priority. Therefore your consulting firm was instructed to elaborate a market entry strategy for the European market.  
4.6 5 29517
| Rating: (4.6 / 5.0)

LubricantsCo, a very successful Asian premium producer of lubricants in their native region, would like to further increase their revenue and profit. The product range ranges from lubricants in the automotive sector (e.g. motor and gear oil) to industrial applications (e.g. fats, heavy-duty oils). ... Open whole case

Oliver Wyman case: Full Electrons Ahead

Solved 99.9k times
Oliver Wyman case: Full Electrons Ahead Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise them on how to adjust the product offering.
4.6 5 6489
| Rating: (4.6 / 5.0)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

Roland Berger case: Light on!

Solved 76.3k times
Roland Berger case: Light on! LumCO, a company producing injection-molded components for lighting applications, has operated successfully in its native European market. The company wants to open up one production facility each in China and the United States and establish their own distribution network in both countries to serve as a hub for the entire region. The products LumCO manufactures can be categorized into Specialties, which are designed and produced by LumCO according to customer specifications (e.g. head lamp casing and lenses in vehicles, luminaires for design lighting applications) and Standards, which encompasses an assortment of components for multiple lighting applications for different industries (fixtures, lenses, luminaires). Based on the only slight but stable growth outlook in Europe, LumCO is eager to establish the production sites in China and the U.S. as soon as possible and also to begin to distribute their products directly. As a consultant, you are asked by the board of management to assess this plan considering your knowledge of each region and the lighting market in particular.
4.6 5 14585
| Rating: (4.6 / 5.0)

LumCO, a company producing injection-molded components for lighting applications, has operated successfully in its native European market. The company wants to open up one production facility each in China and the United States and establish their own distribution network in both countries to serve ... Open whole case

EY-Parthenon Case: Virtual Marketplace

Solved 41.5k times
EY-Parthenon Case: Virtual Marketplace A leading online real estate marketplace in Germany – your-new-home.com – is struggling with stagnating sales after many years of high growth rates. In a preliminary project with EY-Parthenon, the market environment has already been examined in detail – competitors, new entrants, customer needs, etc. As a result, you are asked to identify growth areas and to quantify the potential sales uplift for the management.
4.3 5 1292
| Rating: (4.3 / 5.0)

A leading online real estate marketplace in Germany – your-new-home.com – is struggling with stagnating sales after many years of high growth rates. In a preliminary project with EY-Parthenon, the market environment has already been examined in detail – competitors, new entrants, customer needs, etc ... Open whole case

BearingPoint Case: Digital Business Model of a Parking App

Solved 14.4k times
BearingPoint Case: Digital Business Model of a Parking App A car park and parking lot operator pursues the strategic goal of exploiting new sources of income via digital business models. As part of this initiative, a MVP (Minimal Viable Product) was developed for a parking app that enables users to search and pay for paid parking spaces. The managing director approaches you with the request to carry out a comprehensive analysis of the parking app. First, the digital business model of the parking app will be analyzed. After the strategic consideration, a financial evaluation of the parking app will be carried out. On this basis, a clear recommendation will be made as to whether the app should be rolled out throughout Germany or not. Finally, an analytics-driven expansion strategy should be considered.
3.2 5 193
| Rating: (3.2 / 5.0)

A car park and parking lot operator pursues the strategic goal of exploiting new sources of income via digital business models. As part of this initiative, a MVP (Minimal Viable Product) was developed for a parking app that enables users to search and pay for paid parking spaces. The managing direc ... Open whole case