Tags: pokemon go | small business | lexington herald leader | reality

Small Business: 3 Ways to Profit on the Pokémon GO Craze

Small Business: 3 Ways to Profit on the Pokémon GO Craze
Pokemon Go is displayed on a cell phone. (AP photo/Richard Vogel)

By    |   Monday, 25 July 2016 08:03 AM


The game-playing craze of the summer also could be the perfect opportunity for your small business.

The Lexington Herald Leader explains that Pokémon GO is another way that tech is allowing companies to grow their business.

And the newspaper predicts that while the game may or may not grow more successful, augmented reality is here to stay.

Pokémon GO is a free-to-play location-based augmented reality mobile game developed by Niantic for iOS and Android devices. It was released in most regions of the world in July 2016. Making use of GPS and the camera of compatible devices, the game allows players to capture, battle, and train virtual creatures, called Pokémon, who appear on device screens as though in the real world. The game is free-to-play, although it supports in-app purchases of additional gameplay items. An optional companion Bluetooth wearable device, the Pokémon Go Plus, is planned for future release and will alert users when Pokémon are nearby.

The Lexington Herald Leader explains that it is easy to draw Pokémon Go players to your business. Peter Shankman, author of “Zombie Loyalist: Using Great Service to Create Rabid Fans” and an avid Pokémon Go competitor (in game terms a “trainer”) says that Pokémon is yet another way that tech is allowing companies to grow their business and expand to new markets.

"Shankman suggests that companies wanting in on the action should start small. Download the app and play the game. Spend $10 and install a “lure” near your business. See what happens. Don’t try to force it, let it come to you. If given the opportunity, people will come," the newspaper reported.

"The key to success for your business, Shankman says, is to not force people to buy once they come around you. There is nothing worse than luring people in then forcing them to do anything. Let it happen naturally."

Thew newspaper offered three tips for small businesses:
  • Host a “lure” party. Advertise it and offer a discount to trainers.
  • Host a Poké-hunt event that starts and ends at your business.
  • Give Pokémon Go social media specials to trainers.
Meanwhile, Apple stands to be a big beneficiary of the global Pokemon Go craze. But could the blockbuster augmented-reality mobile game actually yield up to $3 billion in revenue from purchases in the App Store within the next 24 months? That's the eye-popping estimate by Needham & Co. analyst Laura Martin, Reuters reported.

In a research note, she noted that King Digital's Candy Crush generated more than $1 billion in revenue in both 2013 and 2014, and that Pokemon Go's ratio of paying users to total users is 10 times higher. Apple's standard cut of sales in the App Store is 30%, "suggesting upside to earnings, plus valuable options on future hits" from the Pokemon franchise, Martin wrote.

But the projected $3 billion revenue from Pokemon Go going into Apple's coffers seems almost unbelievably high, given that according to Apple, consumers spent a total of about $20 billion on the App Store in 2015.

Yes, the world has gone nuts for Pokemon Go, which lets users catch virtual monsters in the real world by throwing balls at them. But Martin's projection optimistically assumes that players will continue to flock to the game -- and spend money on it -- while it's possible the popularity of the app will die down over time.

Meanwhile, Citi analyst Mark May's estimate for Google Play's potential revenue from Pokemon Go is more conservative: Google could pull in $77 million from the game Go within the next 12 months, he wrote in a note Wednesday. In addition, Alphabet, Google's parent company, will benefit from its ownership stake in Niantic Labs, the company that developed and released the app after it spun off from Google last year.

Unquestionably, Pokemon Go has become a worldwide sensation to quickly become the most popular mobile game in history. It's free to download, offering in-app purchases for premium items. The game's PokeCoins currency starts at 99 cents for 100 coins; items for purchase include PokeBalls, Incense to attract Pokemon to your location and Lures to attract other users to a specific location.

To date, Pokemon Go has been downloaded more than 30 million times worldwide on iOS and Android, and has earned more than $35 million in net revenue, according to estimates from data-analytics firm Sensor Tower released Tuesday. Currently the game is available in 35 countries, including most of Europe and Canada, after launching July 6 in the U.S., with its debut in Japan set for this week.

(Newsmax wire services contributed to this report).

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The game-playing craze of the summer also could be the perfect opportunity for your small business.
pokemon go, small business, lexington herald leader, reality
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2016-03-25
Monday, 25 July 2016 08:03 AM
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