Benefits for major brand retailers
Pantiles map on the app
Pokemon being captured
Pokestop on the Pantiles
22 July 2016
Disruptive Marketing Pokémon Go
Following on from our blog post dedicated to the latest apps we’ve been loving, it was only natural that we review the record-breaking Pokémon Go with a view to the kind of effect it’s having on businesses who are quickly catching on to the hype of the addictive hunting game and using it to their advantage.
Small businesses in particular are benefitting from the craze, with many using in-app purchases known as ‘Lure Modules’ in order to attract Pokémon, with those looking to catch them following suit. Examples of such creative marketing strategies include L’inizio’s Pizza Bar in New York. Spending approximately $10 on Lure Modules for a day resulted in a 75% rise in business sales. This is a prime example of the power and influence of the app.
Some locations are automatically designated as Pokéstops or “Gyms”, where players can fight one another or stock up on goods. These are crucial to the game, meaning footfall in these areas increases over time. Therefore, while not appropriate for every business, it’s worth using such a feature to your advantage.
Many companies are using this opportunity to drive sales by conducting Pokémon-related competitions, such as at Port City Brewing Company in Washington, which was discovered to be a Gym. A two day long Pokémon Costume Contest was then organised at the brewery with prizes being given out for those who took part. This was advertised on their twitter, meaning that anyone could take part, even those who were unaware of the brewery beforehand.
The Pokémon phenomenon could also be a lure to areas that are regenerating or looking to drive additional foot traffic in town centres and areas affected by out of town developments.
ifour decided to put this theory to the test with a quick straw poll on The Pantiles, an area that is seeing a resurgence following some exciting new shops, as well as the old favourites. The interns were sent out to quiz those clutching a phone.
Out of 16 people, 11 people were playing Pokémon Go at that moment, 6 players stated they would go to an area with lots of Pokéstops, while 7 players would choose a coffee, pub or other business if they had a dedicated Pokéstop.
To put this into context for non-gamers, The Pantiles has 9 Pokéstops in close proximity, so the sight of a player holding their phone up at an odd angle is already quite normal. Even in this small sample size the prevalence of Pokémon Go is clear, with the majority of people asked playing the game. It’s also likely that gamers would seek out specific places because of their Pokémon benefits, so perhaps more businesses need to be getting involved.
However, Pokémon Go won’t be a good thing for everyone. Its release and growing popularity among small businesses as a marketing tool, may hit companies such as Foursquare who run the app Swarm, which allows users to earn prizes and even money off vouchers when they ‘check in’ to participating venues. Business owners may choose to redirect their spending to Pokémon Go over Swarm as it has more users.
Pokémon Go could also have benefits for major brand retailers, who are thought to be looking into getting involved with the phenomenon. John Hanke, the chief executive of Niantic, the software developers behind the app, has stated that sponsored locations will be introduced, creating a new source of revenue for the already hugely successful game. The first sponsorship is rumoured to be introduced alongside the release of Pokémon Go in Japan, Pokémon’s country of origin. TechCrunch reports that the first collaboration will be with McDonald's, with their fast-food restaurants becoming Gyms although there is no specified date for when the release will be taking place.
However, Pokémon Go is already having a huge impact on McDonald’s Japan, which has been struggling due to food safety scandals. Their stock soared by as much as 23% when Pokémon figurines, such as the popular Pikachu, were included in Happy Meals, demonstrating that consumers are flocking to anything Pokémon Go. With the game not even launched yet, it's safe to say we haven’t seen the full effect of Pokémon Go in Japan.
Everything is up for grabs
As the game becomes more popular and users spend longer on it, an increasing trend is appearing. High-level players who have dedicated the last two weeks to playing on the app have started to sell their accounts on eBay for a very high price. An account claiming to be Number One in the world has uploaded their account onto the selling site, with the buy it now price at $8,888.88. It seems even players are realising the potential for money to be made because of the trendy app.