Online dating gets new vibe
2003-01-13 12:26
Reshma Kapadia
New York - Online daters using Yahoo's personals service will now be able to check whether a possible match has a deep voice, for example, or quirky mannerisms before embarking on a first date.
Yahoo is trying to ease the online dating experience. The company said on Monday it now would offer voice and video greetings to singles, for free, to spruce up their online personal ads on its service.
Samantha Lazear, senior product manager for Yahoo Personals, says: "Online dating is becoming much more mainstream. The beauty of voice and video is that it tells people more about the other person through the nuances in their speech and their mannerisms and you can't get that with just text."
More than 17 million people viewed online personals last year and 2.5 million people have paid for online personals, according to Jupiter Research.
Online dating has become a high-growth business for the market leaders as more singles flock to the web for love.
Jupiter Research analyst Stacey Herron said: "If you want to talk about major umbrella dating services, they are the first to market with a simultaneous video and voice component."
Yahoo does not charge for singles to post an ad and they can browse other ads for free. But it charges a subscription fee of about $25 a month or $100 a year to initiate a relationship with another single and reply to an ad.
Pictures pull the people
To use the video and voice components, web surfers need a microphone and webcam.
Lazear said: "What we have found is that ads that have photos get eight times as many responses as ads with just text. We think the more people learn (through voice and video), the more they are likely to respond.
"Our business grows when people feel comfortable making a response."
American Demographics reported that only 22% of the 98 million singles in the United States in 2002 had tried online dating, Lazear said, adding that the industry had just scratched the surface.
Herron said: "Being able to use video and voice for free is a big deal because consumers will be willing to embrace these new technologies and acclimate to it. Eventually, down the road, Yahoo could charge for it with a premium fee."
Yahoo does not disclose how many people subscribe to its personals service, but the company said 70% of the company's subscription revenue in the third quarter came from four services - one of which was personals.
Jumping on bandwagon
Yahoo chief executive Terry Semel said last week the company had met its goal of ending 2002 with two million paying subscribers.
The company has been trying to boost its paid services to offset the slump in its advertising business and diversify its revenue base.
Herron said: "Now that Yahoo has launched this audio/video it puts them in a good position.
"Of course, everyone else will follow suit. We will see a bigger battle between the top four blanket dating sites and will likely see more genre-specific or niche sites proliferate."
Top online dating sites include USA Interactive's Match.com; uDate.com Inc, which USA Interactive has recently agreed to buy; Lavalife.com and Yahoo, said Herron.
- Reuters