Cupid plans new marketing strategy as it reveals first half spend of £27.4m
Online dating website Cupid has revealed an 18 per cent increase in marketing spend to £27.4m for the first half of 2013 as it sets its sights on rebuilding its brands.
The site, which disposed of a number of "casual" assets in July to Grendall Investments for £45.1m, revealed half year results this morning (24 September), which included a 12.4 per cent increase in revenue to £43.3m and a gross profit margin, reported at 17 per cent.
The assets disposed of, included sites BeNaughty, Flirt, CheekyLovers, WildBuddies, Click&Flirt and QuickFlirt and their international equivalents, which were described as "distractions" by Bill Dobbie, CEO of Cupid.
However, Cupid has retained sites Cupid, GirlsDateForFree, UniformDating, MatureDatingUK, IndianDating, Serencontrer DatingforParents and Canoodl and will now enter "a transition period" explained Dobbie.
He continued: "We have a strong, differentiated strategy in place, which we firmly believe will benefit both shareholders and product users, and are focused on delivering this. We are now reinvesting our considerable experience and expertise in developing our portfolio of brands based around a distinctive positioning and the quality of the customer experience. We expect to deliver a stronger financial performance in 2014 from the foundation of a leaner more focused organisation."
Following the disposal, marketing investment increased to £9.4m, with £3.1m invested in AGL and Uniform Dating.
Going forward, it was revealed that the company plans to broaden it marketing, placing less emphasis on online affiliate-based marketing and more on offline marketing, PR and SEO.