Tinder, the “hot or not” dating app from IAC/InterActiveCorp has had its share of challenges. However, it doesn’t seem like money will be one of those problems. Tinder ran its first ad experiment in January with fake profiles of The Mindy Project. According to Ad Age, the app could generate $75 million in revenue a year if it monetizes at the same rate as OkCupid, another IAC-owned dating service.
“It’s growing like a weed,” IAC’s Match Group chairman Greg Blatt told Ad Age, adding that its monthly active users is up 140 percent.
In addition to The Mindy Project, Tinder has played around with profiles for Dominos Pizza as well. And while these are obviously fake profiles, they come with no disclaimers, prompting ValleyWag to call them “noxious.”
It may seem like a good idea to advertise on Tinder this way; however, paired with the news that the match-making site’s growth has attracted bots and scammers creating fake profiles, it would be best if the ads were accompanied with a disclaimer.
IAC chairman Barry Diller told Ad Age that the company is exploring other monetization possibilities including subscriptions and a “freemium” model, where anything more than basic access comes at a cost.
All told, while Tinder isn’t profitable yet, it’s clear IAC is working on turning its “rising star” into a money-maker.
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