Augmented Reality (AR) became more widespread due to the game Pokemon Go, where millions of players explore the real world in search of virtual characters. It has also drawn attention to a new marketing channel that could prove quite successful.
In other words, the game is a moonshot in augmented reality, according to Kartik Hosanagar, professor of operations, information, and decision-making at Wharton . “One thing that helps ‘Pokemon Go’ is its novelty. It’s one of the first games to merge the digital and physical worlds,” he said.
Compared to their more familiar relative virtual reality embodied by Facebook’s Oculus, Google Cardboard and other initiatives, augmented reality is different. Through a hat or mobile device, augmented reality superimposes a computer-generated image over the perspective of the actual world. Microsoft’s HoloLens technology uses augmented reality for everything from gaming to analytics to document collaboration. As this is still a development project, HoloLens is not yet generally available.
According to Jonah Berger, a Wharton marketing expert, although HoloLens is intriguing, Pokemon Go is the game that popularized augmented reality. According to Berger, the game is straightforward yet amazing. It is the first widespread instance of AR for the general public.
According to Wharton University economics professor David Hsu, one of Pokemon Go’s key differentiators is how it blends everyday technology with landmarks, location services, and familiar Nintendo characters. These technologies include GPS, mapping and satellite services. Hosanagar continues, the game has allowed augmented reality to take a back seat and gameplay to take center stage.
What does the term avatar in a virtual world refer to?
The word “avatar” in a virtual environment refers to a fictional character representing a real person. An avatar is a profile thumbnail used in virtual worlds that can be customized.
If we choose a female avatar, the whole scene takes on a fairy or pink tone. If we apply an evil avatar, the whole scenario becomes cloudy and dark. Simply put, an avatar is a form of sticker that we used to use in school.
Gamers will see their avatars explore the actual landscape on a map that also includes virtual gyms for testing skills and pokestops that are real landmarks like public art or churches. Pokeballs are used to capture characters. A screenshot is also available that combines real landscapes with virtual Pokémon characters.
The goal is to catch all 151 Original Pokémon. The game generates revenue through in-app purchases for in-game currency and abilities. In terms of technology, “Pokemon brings something familiar to technology and offers a mixed experience,” says Hsu. “It’s likely that 99% of Pokemon Go users will have their first AR experience.”
How is a game like Pokemon Go an example of augmented reality?
The foundation of Pokemon Go is Google technology, which isn’t unexpected given that Niantic Labs, the company behind the game, spun off from Alphabet, Google’s parent company, last year. Niantic CEO John Hanke and many other developers contributed to the development of Google Earth and Google Maps.
The company, now known as Niantic Inc., created the well-known AR game Ingress, which also uses GPS and advanced graphics, allowing players to interact in actual locations. While Ingress is hugely popular, it lacks Pokemon Go’s scalability. The game builds on the Ingress platform in many ways. For example, information provided by Ingress players about the local locations they believed should serve as portals in this game was used to determine in-game Pokestops and Gyms.
According to Eric Bradlow, a marketing professor at Wharton, the possibility of developing an augmented reality game on top of technologies invented by others is encouraging for ARy.
Pokemon Go is built on an existing mass distribution platform. This will result in a tremendous growth acceleration versus an entirely new app and platform,” says Bradlow.
The decision to build Pokemon Go on top of an existing infrastructure was critical to its success, according to Julie Ask, an analyst at Forrester Research.
“Because it’s built on a cloud-based service, Pokemon Go can be quickly deployed and scaled to meet user demands,” says Ask.
The Pokemon Company, Google and Nintendo are investing $30 million in Niantic’s business, the company said in October. Of that amount, $20 million was paid in cash upfront, and the remaining $10 million would be given if certain goals were met.
Then, Niantic released updates on Pokemon Go’s development progress, field testing, and plans for its global launch. Pokemon Go quickly topped the charts on Apple’s App Store and Google Play following its July 6 launch.
According to Berger, the game’s popularity is likely to attract new developers to augmented reality. “It’s a simple game from a well-known brand, so it already has a kind of built-in user base. It should introduce a few people to AR and help it grow,” says Berger.
Police agencies around the world have issued alerts about distracted driving, collisions, and criminals preying on Pokemon Go players since the game’s release. For Pokemon Go, Niantic has introduced a wearable gadget that allows users to complete tasks without using their smartphone. In theory, Pokemon Go Plus, being a wearable device, would reduce some of the glitches that occur when players walk while looking at their phones. Pokemon Go Plus is currently available for pre-order on Amazon, but the release date is unknown.
Analysts are particularly intrigued by Pokemon Go’s potential as a marketing tool. “It’s a brilliant idea to have advertisers and physical locations pay to place bonuses in-game. It’s a tremendous opportunity for analytics,” says Bradlow.
What is Augmented Reality?
Digital visual components, audio or other sensory cues transmitted through technology are used to create augmented reality (AR), an augmented representation of the actual world. Companies that deal specifically with mobile computing and business applications are noticing an increasing trend in this direction.
What kind of augmented reality is Pokemon Go?
Pokemon Go and AR can pave the way for more regional advertising and immersive marketing, according to Wharton marketing professor David Bell. “I see the direction for augmented reality in advertising. The next evolution of the web will be to immerse yourself in an environment… augmented reality puts you in tune with the local environment and context is reinforced,” says Bell.
Hosanagar points out that future augmented reality projects, as well as Pokemon Go, can easily contain advertising.
“Location Based Advertising (LBA) is a natural fit. While it’s not clear if LBA will dominate in-app purchasing for Pokemon Go, it’s clear that LBA will be a very important monetization model for many more augmented reality games in the months and years to come.” said.
Who will be the winners of augmented reality technology?
Also, Pokemon Go and subsequent augmented reality games are likely to be more social. Additionally, this prospect will attract more platforms and marketers from Google and Facebook, among others.
“Augmented reality is very compelling for advertisers, and we’re just beginning to see the value of location-based marketing. There are aspects of hyper-local targeting, cloud, social, and mobile in Pokemon Go. The reach for advertisers is very compelling,” says Hsu.
The difficulty with augmented reality games is providing marketing and advertising without slowing down the gameplay. In fact, according to Hosanagar, Pokemon Go’s success is due to players not paying attention to the technology.
“The most important thing is that most users don’t think of Pokemon Go as AR. Instead, they consider it a great gaming experience. This was required by a killer application for AR. The technology should be in the background and not what the product is about,” says Hosanagar.
Analysts debated how much money Nintendo would actually generate from the game after the game’s initial popularity.
In a research note, Jefferies analyst Atul Goyal explained that Nintendo controls 33 percent of The Pokemon Company alongside an undisclosed investment in Niantic. If Nintendo can monetize the rest of its intellectual property like Mario Bros., in addition to licensing and distribution fees, it could grow its revenue for years to come.
The economics underlying Pokemon Go are a little fuzzy, according to Macquarie Research analyst David Gibson.
“The title was developed jointly by Niantic, The Pokemon Company and Nintendo. It’s unclear what commercial interest they have in the game, but we estimate that for every 100 units earned on the App Store, 30 would go to Apple (or Google Play), 30 to Niantic, 30 to Pokemon, and 10 to Nintendo . As such, we don’t think Nintendo will make much direct revenue from the game. However, Nintendo will generate income from its equity income from owning 33% of the Pokemon Company,” he said.
However, Wharton experts claim that the early return to Nintendo doesn’t fully capture the picture. This game is a proof of concept that could prefigure the release of other games, and Nintendo is lagging behind in the mobile industry. Nintendo usually keeps its characters exclusive to its gaming platforms. Berger claims that Nintendo “needs to think about the next wave and hope to ride it”.
While Niantic, The Pokemon Company, and Nintendo are clear winners, Wharton experts predict Google will ultimately prevail. Pokemon Go could develop a market for advertising that would allow Google to make money. Google Maps is also likely to be used by other augmented reality applications, which will increase revenue.
The companies that control the ad and mapping systems will benefit the most, according to Bell. Google has both.
“The truth here is that Google Maps is the most important part of this project. Location is the gateway to personalization,” adds Hsu.
Do you play the game? Check out how to easily find and catch Shiny Magikarp in Pokémon GO. Check out the best Pokemon GO hacks in 2022 here.
