It’s been about one week since Pokemon Go was released on mobile app stores, and it hasn’t stopped making waves since. Not only has it seen more downloads and activity than Twitter or even Tinder, but it’s shaking up businesses of all sizes.

While Nintendo Co., Ltd. saw a sudden jump in its stock market value, brick-and-mortar businesses found themselves in an interesting position created by the augmented reality (AR) nature of the game.

Pokemon Go is a game that gets users “on the go” by getting them to walk places they otherwise might not visit (with the objective of catching pokemon). Also because of the game’s use of landmarks and places as part of the game, players are more likely to visit businesses, restaurants, malls and other locations increasing foot traffic in those areas. This, and other parts of the game, has led to increased sales opportunities for businesses.

Market Shares and Micro-Transactions

First and foremost, Nintendo is reaping huge rewards from Pokemon Go’s instant success, seeing an amazing 25 percent increase in stock shares. That adds somewhere around $9 billion to its market value – and undoubtedly caused a sigh of relief in its investors, who may have been worried about the previous mobile app, Miitomo, only doing moderately well.

Nintendo, Pokemon Co., and Niantic Labs, which created the app, are all reaping the benefits of micro-transactions. While the game itself is free to play and can easily be used without spending any money, it’s still bringing in somewhere around $1.5 million in revenue each day through in-app purchases. Players can spend anywhere from 99 cents to $99.99 on in-game currency, which can be exchanged for more Pokeballs, Lure Modules, and other useful items.

Small Business Benefits

However, businesses of all shapes and sizes are getting in on the Pokemon Go craze, and it’s not hard to do at all. In the game, there are locations called PokeStops and Gyms, which correspond to real-life locations that they have to go to in order to pick up items or battle other trainers. These locations are already seeing a lot of foot traffic (for good or for ill), and clever businesses are taking advantage of it.

Businesses drawing customers with Lure Modules
Screenshot by Robbie Pleasant

There are items in the game called Lure Modules, which can be placed at a PokeStop in order to attract Pokemon to the location. However, any spot with a module is shared with all other players, giving everyone nearby the benefits of it, and that means players will be drawn in just as quickly as Pokemon. Inc.com did the math, and determined that it would cost about $1.19 an hour to keep a steady stream of active Lure Modules, and when trainers come to capitalize on the approaching swarm of Pokemon, they’ll sit down and shop as well. L’inizio’s Pizza Bar in Queens tried that, spending $10 on Lure Modules, and in return saw a 30 percent increase in sales almost instantly.

Businesses with gyms at their location are also finding ways to take advantage of it, offering discounts or special perks to members of whichever “team” (Valor, Mystic or Instinct) is in control of the gym at the time of purchase. Players are already frantically fighting for control of whichever gym may be nearby, so getting a discount for their team’s victory is just icing on the cake.

Even stores with no gyms or PokeStops nearby are using Pokemon Go’s popularity to boost their sales. Images have been circulating around the web of a pizzeria offering free drinks, slices, or even small pizzas to players, depending on their level. Others are offering discounts to certain teams, or for those who catch nearby Pokemon.

Getting In On The Action

Stores and businesses that want to take advantage of all the traffic that Pokemon Go brings are now able to as well, with a new support page from Niantic that allows businesses to request new Gym or PokeStop locations. There’s clearly a lot that can be gained from having a store’s location connected to Pokemon Go, and business owners can make the most of it if they so wish.

It’s almost crazy to think that a single app based on a series of games about catching, training, and battling little creatures could have this much of an impact not only on people, but on businesses of all sizes. Yet the evidence is clear: Pokemon Go is a game that not only gets people moving, but generates sales for any business willing to take advantage of it.

Photo by edowoo