Leading Gay Social App Woo-ing Urban Millennials with No-Charge Hook-Ups
“Our research continues to show that our targeted demographic does not pay for music, games, movies, or dating,” stated Phil Henricks, VP of Strategy and Business Development at Online Buddies, the parent company of Jack’d. “They’ve been raised to expect that digital products are free and they don’t see any reason to start paying for them now.”
Jack’d’s path to monetization is through selling advertising to corporations eager to reach the hard-to-find gay, urban millennial. “They’re a multi million dollar demographic”, Henricks said. “While they’re not willing to purchase digital products, they have tremendous buying power and have no problem shelling out $5 on a cup of coffee or $200 on a pair of sneakers.”
More than 60% of Jack’d’s revenue comes from Fortune 500 companies, clothing retailers, and the tourism industry, all of whom have run banners on the app in recent weeks. “We see it as a win for everyone. We attract the gay, urban millennials that our members want and our advertisers have a quick, easy way to reach them.”
Nearly five million men around the world have joined Jack’d since its launch in 2010 and it consistently ranks among the top four gay social apps in both the App Store and Google Play. 67% of Jack’d members in the United States are between 18-26. Nearly 60% are Black and Latino.
“Members appreciate that our free version offers many of the premium features they would have to pay for on competing apps,” Alon Rivel, Jack’d’s Brand Manager told us.
As for banners, Henricks says Jack’d members are not bothered by them, citing only 3% of members have opted to pay for Jack’d to avoid the banners. “They understand that someone has to pay for the app. As long as it’s not them, they don’t give it a second thought.”