According to Sensor Tower, mobile dating apps are experiencing a decline in usage and engagement, influenced by factors such as economic conditions and rising competition. Leading apps like Tinder and Bumble are working to modernize their offerings, aiming to attract users back. Price reductions are also part of their strategy to maintain user engagement.
In the third quarter of 2024 (3Q24), global downloads and monthly active users (MAUs) in the dating app category decreased by 9% and 3% year-over-year, respectively. While Hinge showed some growth, Tinder, the largest app, saw an 11% drop. The outlook for the fourth quarter of 2024 (Q4 24) remains bleak, with projections of a 5% year-over-year decline in MAUs, again driven by Tinder’s continued weakness.
Weak Trends in the U.S. and Declining Penetration
In the U.S., the trends are even more pronounced. Downloads and MAUs fell by 14% and 8% year-over-year in 3Q24. User penetration, which indicates the share of the population using dating apps, has declined from 11% in 2020 to an average of 8.4% in 2024. Though this represents only a 1 percentage point drop over the past year, the long-term trend shows churned users are less likely to return, especially given a nearly 4 percentage point growth in new users over the same period, notes NIX Solutions.
Shifting Ad Spend and Uncertain Revenue Outlook
Advertising spending in the U.S. for dating apps decreased by 16% year-over-year. TikTok, which previously accounted for 44% of ad budgets in 3Q23, now holds 24%. Meanwhile, Facebook and Instagram increased their shares of ad spend to 14% and 27%, respectively, compared to 6% and 12% in the previous year.
Bumble and Match Group have both seen a loss of active users, raising concerns about potential declines in paying users and revenue for Q4 24. Among the publicly traded companies, Grindr stands out as the most resilient, likely due to its niche audience. Yet we’ll keep you updated as more data and insights become available.