If you haven’t heard about the Pokemon Go craze, then your ability to hide from trending news is impressive. The game initially launched in Australia, New Zealand and the United States, and within its first week it was the biggest game in the world, reaching tens of millions.
As a result it has impacted every aspect of American life, improving fitness, bringing people together and stopping traffic. While many argue about how good or bad the game is for Americans, one of the more surprising results of this phenomenon has been its impact on small businesses.
How it Works
The game is a collaborative effort between Nintendo, one of the biggest names in video games, and Niantic, a Google offshoot that is specializing in augmented reality. For those of you who are unfamiliar, augmented reality is a concept that uses mobile technology to integrate with the real world.
In the case of Pokemon, the locations where you can get items, win rewards and find the Pokemon you are trying to catch are real places in the world. In order to play the game, you have to travel around your local area to find the things you need. Many landmarks and local businesses appear within the game as places of interest, and foot traffic has risen massively as a result.
Short-Term Impact
If you haven’t already seen it in the news, Pokemon Go has been a huge sales driver for small businesses across the country. In many cases, revenue is up 75 percent or more since the game launched, and this isn’t just for food industry or some niche market.
The game is generating foot traffic, and that is translating into sales. Most of these businesses are sustaining the boost so far with word-of-mouth advertising doing the rest.
The businesses that haven’t seen the immediate boost have noticed their competition. Many managers are taking to social media and simple signs on the property to offer special deals to Pokemon players. Many more are using the game itself as a promotion.
It turns out, for a small fee you can purchase an item that will make your location a hotspot for Pokemon sightings. Many businesses have been making the investment, and the turnout is undeniable.
Sustainability
The immediate impact is undeniable, but business owners across the country are all wondering the same thing. Is this a fad or will it last? When you look at some of the numbers surrounding the game, it’s difficult to imagine them staying so high.
Right now it is the most used app on Android and iOS, and it saw the fastest downloads for a new app on either platform. Inevitably, something will come along that steals a major portion of this audience from the app.
Even when that happens, the audience is so large that a loyal contingent is certain to remain. If even half of the current users stay active for the next two to three years, that alone can push the small business boost in ways no other strategies have succeeded.
Even more encouraging is that the makers of the app have made it clear that they have big events planned as the game releases to more countries around the globe.
Valuable Lessons
If Pokemon Go went offline permanently starting tomorrow, it will still have been a major boon for small businesses. It has done two very important things.
First, it has reminded communities across the participating countries that small business still has a lot to offer. A pleasant surprise while playing a phone game has turned into the spark of loyal business for thousands.
Many players who have experienced this are now more interested and invested in exploring their communities and finding other local gems, with or without the app. That invigoration will persist.
Much more importantly, Pokemon Go has revolutionized social marketing. For years businesses of all varieties and sizes have been trying to master the use of social media, online tools and exciting events to drive foot traffic and sales. This game has blown away all previous methods.
As it becomes more mainstream and a more fundamental part of our everyday lives, augmented reality providers will be able to offer the next evolution of advertising by enabling stores to connect to their audiences in this new way.
While it may eventually become as expensive and inaccessible as Super Bowl commercials, the development process will take years, and in that time small business will experience a renaissance.
