How Pokémon Go will make money From You?


How Pokémon Go will make money From You?

What is Pokémon Go

Pokémon Go is a free location-based reality game developed by Niantics and is supported by both iOS and Android platforms. In July 2016, The Pokémon go app became the most successful gaming app in history with over 100Million downloads. The app has been lauded for taken individuals off the couch and into the real world encouraging active living. Critics are however concerned by the level of personal information the app gets from a player. For it to work, the app requires access to your smartphone and GPS location. It also needs access to your Google profile, user contacts and any secondary storage devices on their smartphone. This access is the real treasure trove that Niantics uses to generate revenue from you

The Five Ways Pokémon Go Will Make Money From You

In-app purchases

The most obvious revenue stream from Pokémon Go is in-app purchases. In the app, you can buy tools that lure out the Pokémon or even virtual storage spaces for the Pokémon. The revenues from such in-app purchases are currently estimated to be about $1.6Million per day.

Sales of aggregated personal identifiable data

The real gold mine for companies in Pokémon go is the information that the company collects about you. By getting access to all your information and contacts, the app creators have a current and complete database that can be sold to third parties. Such a data mine is similar to the value preposition that has seen social media giants like Facebook and Twitter valued in the tens of billions of dollars.

Collection of geo-spatial data showing the kind of places you visit or stop 

Pokémon Go takes over your phone and even prevents it from going to sleep because it is always in a constant search for Pokémons. With the phone constantly transmitting your geo-spatial information to Niantics, the company has a very rich data mine that can be used to identify personal or individual likes and preferences. Marketing agencies are willing to pay a premium for this kind of information because unlike the check-in function on Facebook where an individual has to go consciously into Facebook to check in into a location; Pokémon Go is always “checking you in” wherever you stop and transmitting this information to Niantics. Marketers thus have an unbiased data source to determine your likes and how to target you.

Businesses pay a fee for Niantics to direct traffics to their premises

An area that has yet to get traction but could be the direction of the future is directing traffic to businesses that pay Niantics a fee. Just like in the online world where companies are paid a fee for directing traffic towards a particular website, Businesses can pay Niantics a small fee for and in return, Niantics can place Pokémons in or around businesses thus ensuring the flow of traffic towards that business.  Now that the company has data on individual likes, they can place Pokémons around certain businesses customized for each player’s likes. For example, if you have a preference for Fast foods, the Pokémons can be put near a KFC or Burger King around lunch time.