Retailers needn’t just jump on Pokémon Go as a sponsorship opportunity, but use it as a starting point to explore all the options around location-based marketing, writes xAd’s Theo Theodorou.
It may have been a time of chokers, bomber jackets, double denim and all things grunge, but the 90s were also the decade that Pokémon was born. For millennials, Japan’s Pokémon was a huge part of growing up. Fast-forward 20 years, and just like those fashion trends, the game is back. Now instead of trading cards, fans are running around the world catching characters in the augmented reality game Pokémon Go.
Released officially on July 6, 2016, the game uses a player’s mobile GPS to show a virtual version of their world populated with Pokémon characters to catch. In less than a week, it reportedly became the number one downloaded app on the app store, gained as many users as Uber and Tinder, topped Twitter’s daily users, and started seeing people spend more time with it than in Facebook. It also caused Nintendo’s share price to increase by more than $7bn.
Aside from realising just how many consumers love games, what can fashion retailers learn from this newest internet craze; one that gamifies our location in the real world, in real-time?
Pokémon Go has tapped into the demographic that grew up with its card trading format. Now mobile-savvy and tech obsessed, this generation are demonstrating an immense appetite for a fully online/offline immersed world.
Pokémon Go is essentially the latest poster child for the power of location. Just like all successful location-aware apps like Uber, Tinder and Just Eat, the game delivers a valuable, fully merged experience, and retailers want in on the engagement this connected approach is creating.
A huge 89% of all retail sales are still happening in brick and mortar stores, yet the world is simultaneously becoming increasingly mobile-first. As a result, it is imperative that retailers link the two worlds. As consumers are influenced by more than one channel now, it is crucial that brands understand how online advertising influences their consumers’ real world actions and vice versa.
Where we go, says a lot about who we are. Just like a player’s location tells us about what character they are looking to catch, location insights allows brands to understand a person’s context and proximity to points of interest, which then influence their experiences and actions in the real world.
Compared to search and social, location speaks the truth about our intentions. Just because I searched for a John Lewis voucher as a present for my niece’s birthday, doesn’t mean that I am the perfect target for future online advertising from them, for instance. However, actions speak louder than words and if, through location-based technology, John Lewis were to know I visited multiple stores on different occasions, it’s far more likely I am a worthwhile consumer to target with personalised advertising.
The power of location
While it’s exciting that Pokémon Go has brought the power of location and its abilities to the forefront by giving them a tangible and obvious consumer use, it is critical that retailers think about the type of relationships they want to build with customers. With brands now interested in investing in ‘lures’ by placing a character outside (or inside) their stores, many are recognising the potential location-technology has in driving store visitations.
However, retailers shouldn’t just jump on Pokémon Go, but explore all the options around location and what it has to offer. The pertinent question to ask is would retailers rather use a bribe essentially unassociated to the brand to get people there, or use location intelligence based on real-world behaviours to meet their needs better? With its ability to drive the right customer to a store, at the right time, brands can use location technology to drive engagement and build long lasting, loyal relationships instead of just visitors who want to ‘Catch em all’.
While the technical ability to map locations has existed for several years its accuracy has significantly improved. Now, through Blueprints technology like xAd’s, brands know whether a person is inside a store or just walking down a street – knowledge that is the difference between delivering messages of value or something of irritation to a potential customer. This level of precision means that brands can be sure impressions are meaningful and made on the right audience.
Ultimately, retailers want to drive revenue by enticing customers into their store to buy their products or services. Location technology enables brands to do this by providing intelligence about a customer based on where they go. This means the retailer can then personalise and enhance the customer experience. In a mobile-first world, where we start our path to purchase journey online and complete in the physical world, it is critical that brands grab the opportunity to join the dots between these two worlds.
Theo Theodorou is the MD of EMEA at location-based mobile advertising technology company, xAd. Comment Counts is a series of opinion pieces from experts within the industry. Do you have something to say? Get in touch via email@example.com.