openPR Logo
Press release

Pokémon Go – A game changer for marketers?

Spire, SpirE-Journal, PokemonGo, Technology, Game

Spire, SpirE-Journal, PokemonGo, Technology, Game

Have you caught your Pokémon yet? Pokémon Go – the mobile application-based game – is immensely popular. The game uniquely uses Augmented Reality technology. It has succeeded in growing its user base beyond just fans of the Pokémon comic. With the ability to drive foot traffic to stores, the app has created a new and potentially powerful platform for companies . Clocking in 7.5 million downloads since its debut in the U.S. on July 2016 , is the app a marketer’s boon – or is it destined to become just another “has-been” fad?

What is Pokémon Go?
Taking gamification to the next level, Pokémon Go is a gaming application based on the concept of augmented reality (AR) to deliver a real-life Pokémon experience.

Released in July 2016, the game was developed by Niantic Labs and published by the “father” of Pokémon, Japanese company Nintendo. Using Augmented Reality technology similar to Google Maps, players need to find Pokémon characters at random physical locations and capture them via the phone’s camera.

Pokémon actually combines the words ‘Pocket’ and ‘Monsters’, reminiscent of the craze when the Pokémon games were first released in 1996 on Nintendo’s Game Boy. The sense of going out and hunting Pokémon continues to captivate players.

Gaming psychology in play
Using games to lure consumers is nothing new for businesses. From Cracker Jack (a brand of caramel coated popcorn) launching toy surprises in boxes in 1912 to McDonald’s Happy Meals with toys today – businesses look to drive profits through play.

Pokémon Go provides a playing experience that allows users to rack up rewards. The more players have a positive feeling about playing the game, the more likely it is to increase loyalty and hence business potential.

Pokémon creator Satoshi Tajiri’s work has spawned a giant in gaming. The Pokémon eco-system includes card games and television shows.

Up until the arrival of Pokémon Go, handheld experiences were isolated. Pokémon broke down those barriers by allowing players to face off against, or trade with, their friends.

What common gaming tactics can businesses adopt to boost revenue with an app like Pokémon Go?

Sponsored locations?
The first viral use of augmented reality, Pokémon Go has driven more than 500 million store visits, thanks to 35,000 sponsored locations live within the app, spanning industries from telecom to coffee.

For instance, the Indian wireless telecom provider Jio has sponsored 2,000 locations nationwide, with another 7,000 to be added by the end of 2017.

Local marketing

Furthermore, in-app purchases such as Lures attached to a Pokéstop attract Pokémon users to a specified spot. Many small businesses have found themselves close to a Pokéstop, especially bars, restaurants and retail stores that rely on footfall – opening up another opportunity to attract customers and generate revenue.

For instance, Huge Café – a coffee shop in Atlanta – purchased Lure credits worth USD49 (in July 2016) to ensure more customers at the shop, since it is located between two Pokéstops.

Demographic profiling
Marketers also use the game app to target specific audiences with services and offers in a similar geographic and demographic space.

In July 2016, Virgin Gym in London announced Pokémon workouts, where groups are led by trainers along a specified route to catch pocket monsters during interval training.

Similarly, a leading wireless network service provider in the U.S. – T-Mobile – is offering unlimited data for Pokémon users until August 2017, along with a lucky draw to win prizes that are Pokémon themed.

Commercial impact on Nintendo?
High expectations of profits for parent company Nintendo from the Pokémon Go phenomenon led to a 25 per cent surge in its share price to reach USD222.16 in July 2016. This pushed Nintendo’s market capitalization above USD30 billion.

The game topped app download charts in July 2016 in countries such as Australia, New Zealand and the USA. Five percent of all Android smartphones in the U.S. already have the Pokémon Go app installed.

However, the game was not exclusively created by Nintendo. The app was created by Niantic, an augmented reality game maker, in October 2015. Niantic built Pokémon Go with the Pokémon Company as a collaboration.

Both Niantic and the Pokémon Company receive around 30 percent of Pokémon Go’s revenue. The app is free to download and the revenue is generated via in-game micro transactions.

Challenges ahead

The growing craze to “catch ‘em all” can become hazardous. What challenges should players consider?

Data security risks

If compromised, the app-based game could infiltrate cloud platforms used for data storage or corporate systems. Even if the official application poses no risk, users might download malware from infected games or sites.

There have also been surges in malware versions that are distributed online through unofficial and official stores – even on Google Play – especially in countries where the app is due for a launch.

Game-related accidents

Apart from IT security risks, one of the biggest risks is physical harm to the players. Since players need to physically go out in search of Pokémon characters in real-world locations, players at times compromise on attention to their real-world surroundings.

Players have even stumbled upon strange locations such as graveyards and caves. For instance, two men in San Diego (in July 2016) fell off an ocean bluff while trying to catch a Pokémon.

Battery drainage

While playing the game, a phone’s screen, camera and the Global Positioning System (GPS) are crucial and cause significant battery drain. Although there are temporary solutions to these issues, players are advised to fully charge phones before looking for those Pokémon.

What lies ahead?

Pokémon Go has helped draw attention to the AR industry, which will be valued at USD5.7 billion by 2021. The estimated number of Pokémon Go downloads in 2016 was 500 million. The game can truly be said to have brought AR to the masses by enabling players to interact directly with virtual environments in the real world via a tablet or phone.

Large companies are now keen to explore market investments for AR enabled game developments and releases. Established in 2011 , Magic Leap received investments worth USD1.39 billion (in 2016). It further plans to construct a device similar to Google Glass to seamlessly blend the real world with computer graphics.

Gamified AR technology is a great platform to which marketers can attach promotions and advertising. The use of Pokémon Go Lures to promote store locations showed one way that can be done.

However, the effectiveness of such platforms is only as good as the appeal of the underlying game. The popularity of app-based games often sees a sharp rising curve followed by an equally sharp downward curve as interest wanes and the halo of novelty evaporates. While Pokémon Go has yet to reach every country and still has a long way to “Go”, it is far from clear if other AR-based games can shake the world as Pokémon Go can reasonably claim to have done.

Find out more here: http://bit.ly/2HjdYXs

Spire Research and Consulting was established in 2000 to address a gap in the research and consulting industry in global emerging markets. Unlike most agencies that focus on traditional consumer research, our founders saw a profound need for holistic research projects.

Unit 501-502, DLF City Court,
DLF Phase III, Sector 24, Gurugram – 122002, India
Telephone: (91) 124 421 6144
Fax: (91) 124 422 1934
E-mail: india.info@spireresearch.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Pokémon Go – A game changer for marketers? here

News-ID: 1069854 • Views: 189

More Releases from Spire Research and Consulting

Spire speaks on Cloud computing and IoT at the GATES Indonesia ICT Channel Summi …
Spire was honored to participate in the GATES Indonesia ICT Channel Summit, 2019 as Research Partner. The Summit was held on 18-20 June, in Bali. Albertus Edy Rianto, Senior Manager and Astri Welmien Tompodung, Senior Consultant, Spire Indonesia, shared their insights on the rise of Cloud computing and the internet of things (IoT) in Indonesia's business landscape. The speakers discussed how, through the continued technological advancement, ICT is becoming a general
Will compost turn out to be the magic mineral for African agriculture?
Introducing phosphorous back in African soil is important as it helps plants in early life to build root systems. 80 per cent of phosphate reserves are controlled by five countries. Morocco has 75 per cent of the global reserves. After an 800 per cent price hike in 2008, phosphate rock has become costly. An alternative option is compost. Compost not only provides phosphorous and other nutrients but can also restore the soil
Digital banking in Singapore
What will be the impact of digital banks in Singapore? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in Business Times – Singapore. More and more countries worldwide are issuing full bank licenses to digital-only banks. The competition from digital banks is being seen as a favorable development for the consumer. Digital banks with fewer physical branches and Automated Teller Machines to maintain could incur lower costs
Spire talks about political risks facing business in ASEAN
On 25th April, Spire, Yamada Consulting Group (YCG) and SPEEDA jointly organized a breakfast seminar in Singapore to share insights about the political risks that businesses face in ASEAN in a year of multiple elections. The panelists were Leon Perera, Chief Executive Officer of Spire Research and Consulting, MS. Khor YU Leng, Research Director, Southeast Asia Segi Enam Advisors Pte. Ltd and Mr. Takashi Kawabata, Lead Asia Economist, Uzabase Asia

All 5 Releases


More Releases for Pokémon

15 Best Augmented Reality Games for iOS and Android
Augmented reality game developers continue to improve game graphics and offer more features for users, making AR one of the more popular platforms in the gaming industry. Augmented reality games allow users to compete in life-life battle zones, interact with realistic-looking settings and characters, and utilize plenty of weapons and tools to claim victory over other competitors. Below we explore the most popular and critically acclaimed Augmented reality games for both
Global IoT Platforms for Telemedicine Market 2017-2023 Key Players: Google, Amaz …
IoT Platforms for Telemedicine Market: WiseGuyReports.com adds “IoT Platforms for Telemedicine Market 2017 Global Analysis, Growth, Trends and Opportunities Research Report Forecasting to 2023”reports to its database. Executive Summary The 2017 study has 234 pages, 115 tables and figures. Worldwide markets are poised to achieve significant growth as the digital economy takes hold with IOT Internet of things and all manner of automated medical monitoring processes increase the value of medical care while
Augmented Reality (AR) market size at USD $659.7 million in 2015 is anticipated …
Augmented Reality (AR) Market: Augmented Reality Market Is Expecting To Reach Into Trillion Dollar In Future Due To Increasing Demands In Various Sectors, Says Industry Experts WiseGuyReports announced addition of new report, titled “Augmented Reality (AR): Market Shares, Strategies, and Forecasts, Worldwide, 2016 to 2022”. Augmented reality is becoming essential part of people lifestyle and day to day living. AR is assured that it will be part of trending Internet of things (IoT).
Capsule Hotels – A Regional Japanese Fad or the Next Pokémon GO?
Capsule Hotels: Overview Japan is one of the most expensive countries in the world to live and work in. According to an Atlas and Boots study, the capital city Tokyo jumped six places from number 11 to number 5 in the 2016 ‘most expensive city for expatriates’ ranking. Hotel room prices average around $250 per night in central Tokyo, which makes it a challenge for both companies and their employees to
7 Reasons Why Pokémon Go is Good for Your Health
Without question, Pokémon GO has become a worldwide phenomenon – thanks to its unique augmented reality gameplay. But could it also improve public health by introducing the gaming generation to the benefits of playing outside? here's no question that Pokémon Go has become an overnight business success. The augmented reality game was reportedly the most downloaded app ever in its first week. It garnered over 20 million active users in the
Get PokeFit - Let Your Monster Hunt be Your Personal Workout
Aachen, August 1, 2016 – P3 the consulting, management and engineering services company that has become the global authority on mobile data usage, announced the launch of PokeFit for Pokémon Go, a new smartphone app that turns your monster hunt into a personal workout challenge. Pokémon Go “trainers“ can download the free PokeFit app at Google Play™ for Android™ and map their routes while capturing calories, distance, step count