DATEMATCH

EXEC SUMMARYHello!

We are DateMatch!, the UK’s first online dating site aggregator. With the UK Dating industry prospering, and over 1,500 sites to choose from, DateMatch fuses data from characteristics of each individual dating site, and matches them to the users personality based on answers given from their personal user quiz

By calculating the users customer lifetime value to a dating site we are able to implement our commission-based model to gain income from this lucrative market.

We hope you enjoy this presentation,

The DateMatch team.

CORPORATE TEAMCEO

• Jack Davidson

Commercial Director

• Abigail Billson

Financial Director

• Tom Carter

New Business Director

• Jenni Dodd

Marketing Director

• Mitchell Droppa

THE MARKET

Market SizeOnline dating

industry is worth an estimated £2bn

worldwide

The UK contributes c. £170m towards

the total

Over 1,500 dating UK sites

9million UK adults searching for love

online

Nearly half of UK singletons have

dabbled with online dating

1 in 5 relationships now being online

30% are 25-35

56% male

44% female

Our Key Target Audience

28% have a income of £25k-

£40k

31% (203) live in an inner city

75% (161) in full time employment

99% (128) go online several times daily

67% ABC1

Age 25-34 and use internet dating sites: 569,000

Source: CCS 2013

They are urbanites who are willing to spend money to save time and love being in the know30% (179) I

spend quite a lot of money on clothes for

myself

52% (161) I love to buy

new gadgets

44% (148) I am not good

at saving money

43% (140) I will spend money if

it means saving time

29% (222) I know the latest trends before

my friends

Source: CCS 2013Audience: 25-34 year olds who use online dating sites: 569,000

COMPETITIVE ENVIRONMENT

SWOT ANALYSISStrengths• Relatively new to market, no other

competitors at present• Take up could be strong as users

seek an easier way to form relationships

Weaknesses• Tech needs to be able to

aggregate data easily between sites, could be a difficult to do

• Top dating site in the UK is POF with 1.05m unique a month, hard to commercialise free services

• Business model could be to replicate

Opportunities• Market is worth c£170m in the UK• Tool would have strong demand as

UK users are flooded with different websites

• Strong commission potential with the core sites (i.e Match, eHarmony)

Threats• Could be copied by general market

comparison sites very quickly• Date sites could block the

comparison site (i.e Direct Line)• Competition from affiliate

networks• High PPC investment from dating

sites, business would have to match to gain SOV

Polit

ical • We aim to protect our

users from frauds. We will warn them of the lack of criminal background checks for our sites users. By providing online checks, which are currently not possible to do, there is scope for false security.

• To avoid any unwanted pressure from gay rights campaigners we will have to ensure exposure for same sex searches.

• A .co.uk domain.

Econ

omic

An a

lway

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, the

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er a

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e to

be

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r th

at sp

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Howe

ver,

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ill pl

ay o

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ason

ality

– we

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ld ra

mp

up o

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rese

nce

at k

ey ti

mes

in th

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ar, V

alen

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Day

, lea

d up

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etc

.

We

woul

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rs v

isitin

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utsid

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e UK

an

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nten

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arch

, we

woul

d ha

ve to

inclu

de c

urre

ncy

conv

erto

rs/o

ptio

ns.•An always on strategy,

there is never a bad time to be searching for that special someone

•However, we will play on seasonality – we could ramp up our presence at key times in the year, Valentines Day, lead up to Christmas etc when being in a couple is a prominent feature.

•We would have to consider users visiting the site from outside the UK and their intentions to search, we would have to include currency convertors/options.

Socia

l •Online dating is no longer considered a taboo

•ABC1, 25-35, 56:44 male:female

•Time deficient lifestyles mean its difficult to meet new people out and about, let alone having to trawl through various dating websites, DateMatch takes this stress away from the user.

• Widely accepted and often praised within the media, there is the occasional negative story we have to be mindful of.

• Something that is well known to be done amongst friends in instances where confidence is low.

• We could potentially look to expand via the hosting of events brought to you by DateMatch

Tech

nolo

gica

l • The increased usage of smartphones and tablets indicates we need to be optimised for these devices and various operating systems.

• Must not neglect desktop users, as online dating is not something that users will rush and PCs/laptops still have that sense of reliability and trust

• There could be scope to increase activity in the form of a mobile/tablet app

BUSINESS MODEL

BUSINESS MODELUser

acquisition Intercept Recommendations

Advertising revenue

- SEO- Database acquisition- Online targeting

- EOI (Expression of interest)

- Demographic recommendation

s

Based on test:

-Demographic- Personality- Likes/Dislikes- Affinity

Fee based on:

- EOI- Sign up to dating site

User signs - referral fee

We make money from referrals and advertising on site.

LIFETIME CUSTOMER VALUETo charge the correct fees we must assess our commission based on the lifetime customer value that the dating site attributes to a new “user”

Value(Cost of site per

month)

Membership(Period of time

initial user signs up)

Loyalty(Proposed period

of time the customer will

stay)

LCVX X =

1. Allowable acquisition cost: This is the amount you’re willing to spend per customer per campaign -- as long as the cost is less than the profit you make on your first sale.

2. Investment acquisition cost: This is the cost you’re willing to spend per customer knowing that you’ll take a loss on an initial or even subsequent purchase. But you have the cash flow and other resources to absorb your initial marketing investment with this longer-term strategy.

EXAMPLE OF COSTINGS

Value(Cost of site per

month)

Membership(Period of time

initial user signs up)

Loyalty(Proposed period

of time the customer will

stay

LCVX X =

£20 p/m 3 months 1 year £240X X =

LCV % commission< £10 65%£11 - £50 50%£51 - £100 35%£100 + 20%

Based on this model, our commission model would look

roughly as so

POTENTIAL REFERRAL INCOME

Target Audience 25-34

(569,000)

1.871m use dating sites

Acquisition rate of 7% - 39,830

Value of average user to us - £26.25

Potential Referral income £1,045,537.5£25 x 39,830

Based on 3 month membership at

£25 p/mCommission rate

of 35%

7% is estimated

ADVERTISING REVENUE MODEL

The site will be heavily promoted to invite page impressions and due to the detail of questions, will allow

us to have a detailed picture of the customer

- Targeted newsletters

- ROS Display

- Targeted display (an expansion point)

£20 cpm

£4 cpm

£8 cpm

Offline events - dating nights

Potential expansion areas:

Partnerships - with brands that target these users

Research Panels - incentive based usersMobile based function

POTENTIAL ADVERTISING INCOME39,830 Uniques, with an average of 8 page views per visit

Opt-in rate of 20% for newsletter - 7,966 subscribers

Targeted display - This would be an expansion point once the site has grown

£20 cpm Assume an opt in rate of 40% - 15,932 subscribers

318,640Page Views

£1,274Per format

£637.28 Per Placement

£8 cpm TBC

Advertising would very much be an aside for the site. There are interesting opportunities to possible re-target users once they have left

the site

MARKETING AND SALES STRATEGY

Boug

ht

Ow

ned

Earn

ed

Tease SustainLaunch

Marketing Strategy

PPC Strategy•We will target keywords that users will type to find dating sites to intercept their journey•We will adopt an aggressive strategy and ensure our site links are strong so that our quality score for word matches is strong enough to allow us to have as low a Cost per click rate as possible

SEO•We need to ensure that we receive as many organic searches as possible however the history of other

Paid Social•We will look to target users based on their key words on Twitter to invite them to visit DateMatch•By appearing in relevant areas to our Target Audience we can communicate with them in a cost efficient way on a cost-per-engagement model.

PAID SOCIAL

Segment/Interest

Format Weighting

Engagement Rate

Dating Promoted Tweets timeline 25% 1.50%TV Interests Promoted Tweets timeline 20% 1.50%TV Keywords Keyword targeting Timeline 40% 1.00%

Dating Keywords Keyword targeting Timeline 15% 1.50%

Using Twitter to jump on the back of social conversations will allow us to target our consumers in a relevant and timely manner. Not only does this make us extremely target but the cost model is efficient as it is based on a cost per engagement rate.

Being around relevant TV shows such as Take Me Out, Girlfriends, First

Dates etc will make us contextually relevant

WHY IS THIS A GOOD INVESTMENT?

3 REASONS• Low start up cost

• Low competition

• Expanding and lucrative market