CEO Spencer Rascoff Outlines Match Group’s Turnaround Strategy

Match Group CEO Spencer Rascoff discussed the company’s turnaround in an interview with Fast Company. He spoke about changes to the way Match operates, Tinder’s efforts to attract Gen Z, the use of AI and the company’s move beyond swiping. He describes its turnaround in three stages: reset, revitalise and resurge. The reset is complete and the company is now working through the revitalisation stage. Its goal is to stop the decline in monthly active users and paying subscribers by the end of 2027.

Unification of Match Group’s Brands
Match Group has changed how its brands are managed. The company grew by acquiring dating apps, and many continued to operate separately. Now, a single team manages around $600 million in annual digital advertising across 20+ brands. Match is also connecting the technology behind its apps so new features can be introduced across several products.

Improved Localisations
Localisation is another part of the strategy. Tinder operates in 166 countries, but its product was previously largely the same in every market apart from language. Local teams now have more freedom to change features, pricing and recommendations. In Japan, Tinder is testing screenshot blocking because some users, particularly women, worry that their profiles could be shared with colleagues, friends or family. In Japan, it is also common for dating profiles to include details such as salary and blood type. Rascoff said Pairs is responsible for about 10% of marriages in Japan. Match is changing Tinder’s pricing in India to improve the balance between men and women. People in smaller cities use Passport to connect with users in Delhi, Mumbai and other large cities. Match may eventually offer Passport as a separate product in India.

Gen Z
Around 60% of Tinder and Hinge users are under 28. Tinder has introduced several features to attract more Gen Z users. Double Date allows two friends to match with another pair. It is used by 25% of Gen Z users in the US and close to 50% in some European markets. Tinder is testing Groups, which allows groups of between three and 15 people to connect. In-person events are part of the same push. Tinder’s events are available in 25 cities. Activities include run clubs, karaoke, and group walks. Users can see who plans to attend and contact other participants after an event.

New Focus on Women
Match is testing a new paid tier aimed at women. Most dating subscriptions offer greater visibility, but many women already receive more attention than they can manage. They need better ways to sort through incoming interest instead. He did not provide further details about the product or when it might launch.

AI
Rascoff said AI should help people connect rather than speak for them. Match is using the technology for safety, fraud detection, recommendations and communication advice. Hinge can suggest ways to improve a profile response without writing it for the user. Allowing AI to create profiles or conduct conversations would undermine authenticity.

Source: Fast Company