Pokemon Go and Its New Digital Ad Platform

With the launch and success of “Pokémon Go,” we have hit a new era of digital advertising called “Cost-Per-Visit.” If launched tastefully, this will be the most successful format of digital advertising for physical retailers we have ever witnessed.

So, what is “Cost-Per-Visit?”

An advertiser will only pay if an individual is exposed to their advertising AND visits a set-location. In the past, digital advertising could set geo-fenced locations (a GPS radius that advertising only runs in) for advertising to be served, but there have only been a limited number of digital success metrics in the past, such as:

  • Pixel-Conversion – A digital code is placed on a certain area of the website and a conversion is reached when a user goes from engaging with that advertising to the set area of the website.
  • Cost-Per-Impression – An advertiser is charged when an individual sees an ad.
  • Cost-Per-Click – An advertiser is charged when an individual clicks an ad.

If someone was exposed or clicked on advertising, it was no longer the advertisers responsibility to get them into the store. That has now changed. In this augmented reality era, apps and games will now be developed with the goal of specifically rewarding a user for visiting a location and advertisers will dictate those locations. “Pokémon Go” will do this by incentivizing users with in-game benefits for visiting physical locations that are sponsored by advertisers. It’s rumored the first of these advertisers will be McDonald’s.

While apps have collected user’s information in the past for more accurate advertising, this cost-per-visit model could change the entire format of digital advertising. It will be up to “Pokémon” if they choose to launch this groundbreaking advertising model with taste or if they pair with a giant company, such as McDonald’s, and risk driving users away by forcing them to visit the restaurant to grow in the game.

Even if “Pokémon Go” fails as a result, we can be certain that once this advertising model has developed, we will see it across multiple apps and games in the future.