‘Pokémon GO’: Businesses Are Cashing In On Craze In Expected And Unexpected Ways
A Pokémon GO Gym or PokéStop can generate a lot of revenue if a business happens to be near one.
For the few people who are completely clueless to the game, a Pokémon Gym is a physical place on the Pokémon GO map where players can train their pocket monsters. Similarly, a PokéStop is a physical location where players can go to stock up on PokéBalls and other accessories. If this all seems like gibberish, do not worry. One does not need a Pokémon degree to figure out how to benefit from a fad that has become so prevalent that Nintendo has seen a $7.5 billion increase in its market value, according to TheStreet.
PokéStops and Gyms (referred to collectively as “stops” from here on) create pockets of increased foot traffic wherever they are located. Increased foot traffic translates to increased business traffic for stores around the stop. Not all businesses profit from extra Pokémon traffic. Companies such as travel agencies and auto shops are not likely to see a significant increase in revenue if they are located near a stop. However, service businesses like restaurants, convenience stores, and bars can benefit greatly from this new source of traffic.
The owner of the pizza bar said that since dropping the lure, “business has been ‘unbelievable.'”
The bait apparently worked as an advertisement that his shop was a PokéStop because, despite the short duration of the lure, Pokémon hunters continue to flock to his establishment. Many of the players have become patrons. So many, in fact, that his business has nearly doubled.
Growth like that is rarely seen with any other form of advertising. The increase may be because traditional ads do not compel one to get up and immediately visit the business. With so many people running around with their noses buried in their smartphone looking for the elusive monsters, tracking one to a business is just part of the game. Additionally, all that walking, and sometimes running if someone else is chasing the same monster, can make a Pokémon hunter hungry or thirsty. What better place to take a break than a pizza joint or tavern where one just captured his or her last monster?
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There is no saying how long a lure will continue to increase the traffic to any business, but if it works once, it is likely to work again. With the cost of traditional advertising these days, spending $10 a day during off-peak hours seems like a sound investment. Radio advertising is considered one of the most cost-effective means of promoting a small business, according to business consultants at Strategic Media. However, it is doubtful that a radio ad can double business potential in such a short measure of time.
Some businesses have expressed interest in becoming a PokéStop, but Forbes reported that the developers predetermine the stop locations. So, unfortunately, there has been no way to control whether a particular area has a stop. However, on June 9, Forbes asked Niantic whether businesses would be able to apply to be a PokéStop or if they had any other plans regarding generating revenue in this way. Three days later Niantic CEO John Hanke confirmed that Pokémon GO would be introducing sponsored locations into the game.
Is the endgame of "Pokemon Go" getting you to visit businesses? https://t.co/jSMpDZGvhv pic.twitter.com/DjlPqtoUiM
— Motherboard (@motherboard) July 12, 2016
Apparently, the question brought the realization that the company had been missing out on an incredible money-making opportunity. The game developer immediately gained focus. After announcing sponsored locations, Niantic told Forbes that businesses wishing to be considered as stops can submit a request using the Pokémon GO support page.
Consideration needs to be given because, after all, this is still a game and they cannot just have PokéStops everywhere. Distribution of the shops and gyms has to be carefully weighed, especially since they initially did not design the game with this in mind and probably already have the desired configuration of stops in place.
Despite the desired distribution already being in place, it is certain Niantic will figure out how to monetize stop locations. With businesses starting to catch on to the craze, the company has a product, other than the game, that can virtually sell itself. In the meantime, businesses will have to hold Pokémon GO promotions to cash in on the hottest fad since the Furby.
[Photo by Alexander Koerner/Getty Images]
