While Trainers are out catching Pokémon in Pokémon Go, developers at Niantic Labs are figuring out how to make (more) money through the popular app. Right now, Niantic is making money through micro-transactions when players purchase PokéCoins. They have recently brought up that they wanted to start using sponsored locations as another way of obtaining revenue.
“There is a second component to our business model at Niantic, which is this concept of sponsored locations,” Chief Executive John Hanke said.
This makes sense given that retailers are already paying to set up Pokéstop “lures” to draw players. Sponsored locations are integrated in Niantic’s other AR game, Ingress. So, the company is already familiar with the concept. In Ingress, sponsors like Duane Reade Pharmacies in the US and Vodafone in Germany pay to turn their locations into “portals”. In Pokémon Go, advertisers would be charged for every customer visiting the store, which would be tracked by the app.
Niantic states that they will release more information in the future about any Pokémon Go sponsorship deals. Like with Ingress, they will introduce them carefully so as to not turn off players. Businesses also need to be careful as Pokémon Go attracts large groups of people, which can be both good and not-so-good.
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