How Local Advertisers Might Cash in on the Pokémon Go Craze

You would have to have been living under a proverbial rock to have not heard about the mass hysteria revolving around Pokémon Go, the game made famous 20 years ago by Ninetendo. Within two days of its launch, the app had completely surpassed the dating app Tinder and was generating more downloads than any other iPhone app in the U.S. market. Pokémon Go has also acquired more US users than even the social media giant Twitter.

For all of these boasting rights, the game is still in its infancy, and industry experts are predicting that once Pokémon Go begins a monetization strategy, it will be a game-changer (yes, pun intended). This could have big ramifications (and good ones) in the world of advertising for brands of all sizes.

Here are some reasons why local advertisers might one day soon be able to cash in on the Pokémon Go craze.

It Already Generates Revenue

Players create revenue through in-app purchases via PokéCoins. These can then be used to buy tools that will improve their overall performance and hence gaming experience. According to App Annie, a business intelligence firm that watches apps and digital goods, Pokémon Go is on its way to earning potentially more than $1 billion annually from these in-app purchases.

As impressive as that figure is, there is still huge earning potential should Pokémon Go decide to open its platform to advertisers. These advertising partnerships would have to be strategic and creative, but the financial gains would be worth the effort.

For instance, they could charge a company a fee to become a branded PokéStop or Gym, where much of the game’s action takes place. John Hanke, the chief executive of Niantic, the company behind the app, has already confirmed that sponsored locations will soon be seen on Pokémon Go. Niantic is currently working on a branded relationship with McDonald’s. It’s only a matter of time before smaller brands can capitalize.

For now, local businesses are leveraging the game’s popularity by hosting Pokémon Go parties or offering special deals for players in order to get bodies in the door.

Huge Reach

Pokémon Go has captured a lot, and I mean a lot of peoples’ attention. There are the diehard fans who were playing the game, watching the cartoon and collecting the playing cards back in the 90s. This is one of the best-selling video game franchises of all time. But, because of its unique use of augmented reality, the game is also attracting thousands of users who had never played the game before.

Beyond the sheer number of people playing the game, the really exciting news is just how often they’re playing it. Data indicates that more than 60% of the users who have downloaded the app are playing it daily. And, by midsummer of this year, users were playing an average of 43 minutes a day. TechCrunch has also revealed that users are spending more time playing Pokémon Go than they spend on Facebook.

It’s exciting to think of the reach and exposure the game might give local advertisers one day in the very near future.

Location, Location, Location

Local marketers have had the concept of location-based marketing shoved down their throat over the past five years or so. Those that paid attention are now reaping the financial rewards.

Well, you could say Pokémon Go knows a thing or two about leveraging location and combining it with gaming and branding. Once brick-and-mortar establishments begin to get on board, the results could be huge.

If you’re a brick-and-mortar location wondering how you can turbocharge your local marketing efforts, start paying attention to Pokémon Go and watch how it evolves. Play the game, get to know the user base to figure out ways you can someday capitalize on its enormous popularity. You’ll then be ready to not only take full advantage of the game once it starts monetizing, you’ll also be for the new marriage of location marketing and augmented reality, projected to be a $120 billion market by 2020.