Pokémon GO's phenomenal success has already bolstered Nintendo's share price and is sure to generate a considerable sum of cash for developer Niantic, The Pokémon Company and - via its 32 percent ownership of the latter - Nintendo itself, but it would appear that there are other revenue streams waiting to be tapped.
In an interview with The Financial Times (you'll need to be a subscriber to read it), Niantic CEO John Hanke revealed that Pokémon GO will follow the example of the company's other big AR hit, Ingress, which allowed businesses to sponsor portals within the game to attract players and therefore gain additional custom:
There is a second component to our business model at Niantic, which is this concept of sponsored locations.
This is actually already happening in Pokémon GO - businesses with Pokéstops nearby are using IAP to buy lures which make those Pokéstops more attractive to players for a limited time, encouraging increased footfall. With a proper sponsorship mechanism in place, businesses would be charged for every customer who enters the store, which would be tracked by the app itself.
Niantic has promised that it will reveal more information "in the future" about any sponsorship deals, but you can guess at the kind of businesses which would benefit here. Coffee shops and restaurants are obvious choices as players can sit down and grab a drink or a bite to eat while they collect items, capture monsters and fight for dominance over gyms. Video game retailers are another option, given that Pokémon GO players will more than likely have an interest in other forms of interactive entertainment.
What kind of sponsorship deals do you think we'll see, and how do you feel about this expansion to the game? Let us know with a comment.
[source engadget.com, via ft.com]
Comments 58
What would be some good pokemon-random business mashups?
So basically like Nintendo Zone locations?
Sound like good business sense to me
Nintendo is learning to make MONEY! MONEY! MONEY!
I'm so proud of them. It brings a tear to my eye. Sure, they don't know how to market the NX, but they are going to rule the mobile space with an iron fist.
Get those Poke Watches out in the public and let millions preorder them. Let's make all the MONEY!
I want to see bird pokemon more frequently around KFC and Zaxby's. Just an idea...
Soon Marketers and SEO experts will be playing Pokemon Go as part of their job. (Sure they are playing it already, but now it will be for business!) Businesses are going to need help making their location a hub for Pokemon. Maybe that will end up becoming a ranking factor on Google in the future. LOL
Nintendo will print money again, people!
@XCWarrior How do you know they don't know how to market the NX? Since they haven't even announced what it is yet or made any attempt at marketing it that's some pretty deep insider knowledge you have there.
@SMW basically, revolutionizing the AR game and firmly cementing its impact for the long haul.
Finnish Facebook page Weekend Festival posted an hour ago that their music festival seems to have some rare Pokémon in August. I wonder if the two are connected.
How about getting free items: like get 5 free Lucky Eggs with each $5 purchase.
@PorllM
"How do you know they don't know how to market the NX?"
Because of this:
"they haven't even announced what it is yet or made any attempt at marketing it"
@mordecai Maybe they're waiting for a time for it to be actually relevant? Marketing it now but saying you can't buy it until next year would be almost worthless...The only people that would pay attention are the die hard Nintendo fans that already know they're buying it.
I can see lots of these little concepts being rolled out very gradually, in order to increase the longevity of the title. This may be a success but mobile games have a short shelf life before they're gone forever.
Perfect pokestop by me is a retro videogame store called game over. Those lucky guys!
@PorllM
"How do you know they don't know how to market the NX? Since they haven't even announced what it is yet or made any attempt at marketing it"
I think you just answered your own question.
@mordecai hahaha beat me to it!
@PorllM #13, that's just a silly thing to assume right there.
And this news surprised nobody.
I fully expected the legendaries to only spawn in sponsored locations to begin with.
You're going to see Mew only spawn at Nintendo World in New York or something.
And Zapdos will be at Best Buys!
I can see it now... commercialisation of this game will lead to ADS.
Everytime you went near a McDonald or Starbucks, they will pop up an ad on your screen.
@fiben1002 I might just be an idiot, but what is Zaxby's ?
Is it American ?
@gatorboi352 You think that's a silly assumption, but it isn't one to say they don't have a clue how to market NX, before they've announced the console or had any possible reason to market it? Once they start marketing it, you can freely say they don't know how, if you aren't happy with the marketing. Until then it's an utterly ridiculous thing to say.
@rkinghorn Yeah a chicken restaurant. It's slightly better than fast food.
@PorllM @mordecai @gatorboi352
Nintendo not talking about it seems to have made a lot of stories on here.
Let them sponsor a spot, and if a place of private ownership asks that a PokeSpot be removed (like the Holocaust Museum or Arlington Cemetery), I say that request should be honored as well.
@dew12333 Lmao that's true actually. It's the same thing they do before every console launch. I remember waiting for over a year to find out what the Revolution (Wii) was.
@fiben1002 I was about to say I'm American and I've never heard of them. Seems like they haven't migrated over here yet, though with locations in southern Indiana it can't be that far off.
Well, I'll just substitute Chick-Fil-A for that one.
Ya know, it almost feels like the Nintendo of the '80s-'90s again, where everyone is talking about it, playing its games, and it's getting lots of coverage on mainstream TV. It's just a shame it's for a game that I personally don't think is particularly good. Yeah, it's got "hooks", but it's not exactly stellar stuff as far as I'm concerned. But, it is good to see this level of hype and excitement around the Nintendo name again. It could lead to a kind of rebirth of Nintendo and/or a return to its former glory, which I'd be extremely happy to see.
Some businesses are already raking it in thanks to Pokemon Go. A cafe/diner here in Holland had a huge turnover thanks to all the extra customers.
Just curious, what if i spot on my local boxing gym or Fitness gym or Karate dojo ? Will it show a Hitmonchan or Machoke or Sawk ?
@fiben1002
Huh ? The apps can detect if KFC has relation with 'Avian' based and revealed an Avian Pokemon ? Wow !
So, how about some other restaurant or food store that not related with 'Avian' dishes ? Like Japanese restaurant, Bakery shop, Pizza Hut, etc....
@PorllM It's not "deep insider knowledge," it's common sense. E3 is the biggest game convention thing of the year. You want your big guns there. But they were worried it was going to be overshadowed by Neo and Scorpio and VR. They must not feel like they have a sure fire winner on their hands, or at least a winning pitch yet.
With every month that passes, it makes you wonder what they are doing if they still plan to hit that March 2017 release date.
As long as these sponsored locations are available everywhere, not just 1st world countries like USA, Japan, etc.
I don't want to mod the game to get those exclusive pokemon these locations might have,
I know a restaurant down the street that has a poké stop (sadly their food is terrible! )
Feel bad for the small businesses using this, how do they know if a player walks in, or grabs it from outside???
@XCWarrior You're right that they might not have had a surefire pitch ready but that just shows they are planning the marketing strictly and are very conscious of what they're putting out. Spending more time figuring out what the message is going to be is a good thing and the failure to do that was one of the biggest issues with the Wii U. They will begin to market it when they know exactly what it is and how they want to market it, I say again you can't comment on how well they're marketing it until that happens. And this is Nintendo, they may full well not be planning that March date anymore. Even if they do they still have more than enough time to show it to the world and begin advertising it. Rushing all of that just to get a jumbled message out at E3 would be the most idiotic thing they could do.
Plus you can't say the reason they didn't show it at E3 was simply because they were worried about VR and NEO. Nintendo isn't that one dimensional to make a massive decision on one factor like that, there are countless to take into account. The buzz from E3 is long gone so if that was true they would have shown something by now. It will be shown when it's ready, it's that simple. Until that happens, commenting on their marketing methods is nonsense.
I'm not sure this'll be a good thing, especially if they make it so legendaries are only available at a few sponsored places
@crimsontadpoles That's exactly what Pokemon Go needs. Stick rare Pokemon in locations you have to pay to get in normally. The business makes money, Nintendo makes money, and you get 1 step closer to your collection. It's win-win-win.
@PorllM They told their investors NX is coming out this FY. You can lie to the consumer all you want. You best not lie to your investors often, cause otherwise they will stop investing. Though at least with Pokemon Go becoming their best selling game of the last 3 years, they might have some leverage to be able to lie to their investors if Go keeps making BANK money.
@Nintendian The funny thing is, as bad as that is, I would have taken misplaced real world ads and fixed business location connection centers if it meant not having to give away all the permissions needed by Pokemon Go. Never thought I'd have to say that about a Nintendo product...
I see bars in Tallahassee, FL are actually setting up lures and phone charging stations to have a Pokemon Pub Crawl this weekend, which sounds amazing, and at once reinforces and breeds the idea that this is a true cultural phenomenon, and not just something for sad Nintendo fanboys (spoken as someone who very much is one of those, and has been for a good long time).
I didn't see this coming, but stuff like this is brilliant and suggests this won't be another Miitomo flash in the pan for Nintendo. It's topping downloads AND grossing in the Play Store..... man, I didn't know if Nintendo would ever do it again, but I think they may have finally been able to make something that's capturing the public's imagination in ways I didn't see coming, and crucially, not just children this time around.
Pokemon GO is going to take over the world!!!!! XD
@Anti-Matter Scyther at the Japanese restaurant (all those crazy knife throwing/catching and quick chopping techniques), Magmar at the Bakery (keeps oven hot just being by or in it, and spits flames while steaming for quick baking), and Arcanine at the Pizza Hut (keeps pizza warm while delivering it at super high speeds, doesn't get stuck in traffic).
This is much better than lures in vans.
@PorllM No it isn't, not after 4 years of the joke called "marketing", or should I say lack thereof, in relation to Wii U.
It is completely valid in 2016 after the marketing blunder of the Wii U generation to be weary of Nintendo's marketing efforts towards NX, especially after skipping an E3 opportunity entirely to instead showcase A SINGLE GAME.
@dew12333 Stories? More like thinly veiled venting sessions and frustration.
@MarioPhD Yeah man. It's pretty amazing. And just like with Wii Sports, they do it in a "keep it simple, stupid" kind of approach (And I mean that in the most endearing way). They didn't over think it, or try to pull off an overly complicated 'swiss army knife' kind of approach (i.e. Wii U GamePad).
I suspect that, much like with Wii Sports, Nintendo did not anticipate this phenomenal level of success. It's exciting.
@gatorboi352 of course it's ok to be weary, I never said otherwise. I'm weary myself after how bad the marketing on the wii u was, but that wasn't the debate, someone said they "don't know how" to market the NX. Considering they haven't announced what the console is and all marketing plans are still under wraps that's a crazy thing to say unless you're a Nintendo board member lmao. And I'm guessing they made that E3 decision because NX wasn't ready to be shown, if I'm right it was a smart decision, and doesn't reflect on their marketing of the console in any way.
Also not that it excuses anything, but breath of the wild was arguably the best Nintendo e3 showing since twilight princess, possibly the best from any company.
@gatorboi352 I think they're stunned, and I know I am. I feel like they should start blitzing as hard as they can now: I'd love to see more of the anime series on Netflix, Virtual Console releases of the games they're not making money off of anymore because buying new is essentially impossible (like Fire Red, Leaf Green, HeartGold and SoulSilver on Wii U and/or 3DS), sales on Wii U and 3DS Pokemon titles to celebrate and capitalize on renewed interest in the property on a massive scale..... it's time to go all-out and sustain this interest as much as they can.
I was worried people wouldn't care at all, but I haven't been so pleased to be wrong in a VERY long time. I mean, I doubt this'll last forever, and in time it'll just be hardcore Pokemon fans invested in continued play, but I hope Nintendo pushes HARD to keep this going now that it's happening.
I think you said it well, though: it's EXCITING. Something I haven't felt from Nintendo since the Wii U was announced. I was thrilled about it myself, but the sales failure dampened my love of the system pretty quick. It's nice to be reminded why Nintendo is so important to the games industry, and that they have the power to capture our imagination.
@ottospooky I'd say that depends. Clash of Clans and Candy Crush are currently still in the top 5 for Grossing on Android, despite launching almost 3 years ago and 4 years ago respectively. I see no reason why Pokemon Go couldn't do the same if they keep people invested and keep adding features, since the IP value of something like Pokemon is infinitely higher than titles like those, or at least possesses a much longer cultural legacy.
@XCWarrior Only thing this is not a Nintendo idea or a Nintendo device, it's The Pokemon Company and Niantic's software for mobile phones.
How would a business get in on this?
@khaosklub It sounds like Google Ads so I guess they contact the The Pokemon Company and pay for being in the map or something like that.
@gatorboi352
You must be talking about the comments section there, all the stories are random thoughts from people who know as much as anybody else.
But I liked what you said in the other comment about Nintendo having that simple but endearing approach. It's like they ignore every marketing expert, analysts etc. and just do what they bloody like and when they like. Works for me.
@PorllM
Yeah they knew that sony would steal there idea, ala move. So they keep things to themselves, maybe it's the same for the NX. who knows.
@Jaredfrogman
They don't, the point is that they want people coming to their store. it is more likely for a person to go into a store if they actually to to its location. it is the same concept of advertising really. How do you know the people receiving the advertisements are buying your products or going to your store/restaurant? Simple, you see how your profits are affected based on doing the ad. It's the same concept here.
@ikki5 but it different from traditional adverts. It's not a one-time/monthly etc advert. the business gets charged per customer. sure they should make money, but in highly populated areas that could be nullified by hundreds grabbing the Pokemon from the parking lot.
@Jaredfrogman
Again, that's the risk of paying for advertisement. You could pay for an ad in the paper for everyone to them use it to start campfires instead of go to your store.
@Acein210 the gameover by me is a gym. They were, needless to say, very psyched
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