Monetizing Pokemon Go or Midas Touch

Pokemon Go is not only the most popular mobile game in US history, it has broken all records in terms of user retention and monetization. This is confirmed by the data of the new SurveyMonkey report.

In the US, the game is loaded on average 4-5 million times a day. Every day, Pokemon catch a little less than 21 million active users. Pokemon Go’s per-user retention and revenue indicators are more than double the industry average.
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About 7 out of 10 users who downloaded the application return to it the next day, which is a very high figure. On average, 3 out of 10 people return to the game after the first day of its use.

The average income per active user per day (ARP / DAU) for Pokemon Go is about $ 0.25 - two times more than the so-called casual games - small games with bright colorful graphics and simple rules targeted at ordinary users.

A study by analyst firm 7Park Data states that in the first week after the release of the game Pokemon Go, users spent an average of 75 minutes catching Pokemon. Analysts believe this figure is very high.



They also concluded that the game’s user audience began to spend less time on Facebook and YouTube. However, the total time for using mobile applications in the United States increased by 4.1%. Moreover, researchers confirm the general trend - people are increasingly using their mobile devices.

Most fans of the game are owners of mobile devices based on Android OS. This means that the number of downloads of this on Google Play was huge in the first week after the release of the game.

Despite the small audience among iPhone users, the game gained a record number of downloads in the last 8 years in the Apple App Store for the first week. Apple does not disclose its store revenue from the downloads of the game. But 30% due to in-app purchase apple company cuts.


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This is even more impressive when you consider that in the first 7 days the game was available only to residents of the United States, Australia and New Zealand. And after that, the game began to spread throughout the world.

According to SensorTower, by mid-July, the game earned more than $ 1.6 million per day worldwide.
On July 6, the day the game was released, the capitalization of the Japanese video game maker Nintendo grew by more than 100%. Nintendo is an investor in the game developer Pokemon Go.

However, later, company representatives explained that Nintendo’s contribution to the game was not great. Pokemon Go was created by Niantic, and released by The Pokemon Company, in which Nintendo holds only 33% of the vote. Although Nintendo owns shares in each of these companies, its “effective participation” in Pokemon Go is only 13% of the project. About this Macquarie Securities analyst David Gibson told Bloomberg.

Nintendo develops video games and manufactures consoles. Partners represent the company in the market of games for smartphones. For example, the Japanese DeNA is currently developing five games for it.

Most of the games in the Pokemon universe release Nintendo, but the Pokemon Company has become the publisher of the Pokemon Go.

In addition to Nintendo's shares, the quotes of Pokemon Go partners fell on Monday: the cost of Japanese McDonald's securities, which launched the first sponsorship pokestops in the game, fell by 11%. Promotions Hosiden Corp., whose Mitsubishi UFJ Financial Group Inc. was going to release the device Pokemon Go Plus, fell by 10%. In this case, according to the rules of the Tokyo Stock Exchange, the shares of Nintendo itself can not fall below 18% per day. Investors were deceived independently and voluntarily, on the basis of the huge and rapid growth in the popularity of the mobile game.

Pokemon Go is a free game, but users can buy coins for themselves that can be exchanged for services and artifacts, for example, for accelerated pumping of monsters.


Image of the site independent.co.uk

In addition, it is known that Niantic cooperates with retailers, restaurants and other establishments. If they want the store or office to become one of the locations in the virtual playing field, let them pay for the virtual heroes of the game - Pokemon to be in their premises. Sponsorships will provide Niantic with a new source of income, its CEO John Hanke said. Retailers, in turn, will receive an influx of visitors, since, according to the rules of the game, players will have to go to them in search of Pokemon.

Some restaurants even posted ads: "Pokémon hunters must order something before playing."

Analysts are not yet ready to quantify the revenues from the monetization of the game. Despite the rush around Pokmon Go, Nintendo remains a conservative company that skillfully manages fan loyalty, said Tokyo analyst at Macquarie Securities, David Gibson. She realizes that she can disappoint users if she hastens to include many commercial options into the game, he is sure.