Why Tinder’s move into native ads could challenge the social media elite
So the big news this week came from popular mobile dating app Tinder, with its parent company InterActive Corp (IAC) announcing during its earnings call that it may start to introduce native advertising in a bid to make money from the free app.
IAC chairman Greg Blatt said: “The nature of the Tinder user experience presents itself with real opportunities for native advertising that certain of our other products don’t.”
Of course, Tinder users have already seen ads unofficially, with Fox running fake profiles on the app to promote TV show The Mindy Project, and not forgetting Domino’s Pizza’s ‘cheesy’ and ‘saucy’ chat.
James Briscoe, CEO at Unique Digital, suggests that not only does Tinder have enough data to ensure strong targeting and highly relevant ad placements, but that one day it may also challenge the traditional Twitter/Facebook social media elite:
“It’s great to see that Tinder is finally getting serious about monetising its users. As with many other social networks it has a very attractive audience to advertisers with a large and young base.
“Data-wise, they have enough richness to ensure strong targeting and highly relevant advertising placements.
“Tinder have an added revenue opportunity with a subscription service, enabling more advanced features or perhaps to opt out of advertising such as with Spotify.
“The major challenge is a question of scale and format; the use of ‘fake’ advertising profiles has only a certain life span before the users becomes frustrated. But again similarly to Spotify, they could well appear sporadically in the gap before the next profile appears.
“If Tinder can get this right, it opens up a massive revenue opportunity that could even start to challenge the likes of Twitter and Facebook, if not then many advertisers may just swipe left.”
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