Niantic Explores New Revenue Streams with Pokémon Go’s First-Ever Rewarded AR Ad Campaign

Niantic, the developer behind the wildly popular Pokémon Go game, is exploring new avenues to boost profits as revenues from the game decline year-over-year. Last Friday, the company made a splash in the advertising world by launching Pokémon Go’s first-ever rewarded AR ad campaign in partnership with Lunchables.

The new rewarded AR ad product takes advantage of Niantic’s advanced AR technology to allow marketers to reach gamers as they move around the physical world. This innovative approach sets Niantic apart from other gaming companies and platforms, according to Erica Kovalkoski, Niantic’s head of brand marketing partnerships.

In the Lunchables campaign, Pokémon Go players can interact with an augmented reality hot air balloon that showcases the Lunchables brand. This unique ad experience can be accessed in various real-world locations, providing players with in-game rewards and the opportunity to learn more about the brand.

Despite Pokémon Go’s continued success in generating revenue, Niantic is focused on diversifying its revenue streams and attracting non-endemic brands through new ad formats. With its advantageous demographics, including an older audience and a higher proportion of female players, Pokémon Go presents an attractive platform for brands looking to reach a diverse audience.

The introduction of rewarded AR ads by Niantic highlights the evolving landscape of in-game advertising in 2023. Brands, however, remain cautious about investing in this format due to the lack of standard units and accurate measurement. To address this concern, the Interactive Advertising Bureau, with the participation of Niantic and other AR leaders, is working on developing AR ad metrics to provide brands with more transparency and accountability.

As Lunchables embarks on its rewarded AR ad campaign with Pokémon Go, the brand is confident in its strategy to engage with parents, a significant demographic within the game’s player base. By tracking the ROI of the advertisements through user registrations for its gaming rewards program, Lunchables aims to capitalize on the unique advertising opportunities offered by Niantic’s AR technology.

Overall, Niantic’s foray into rewarded AR ads signifies a new era of innovation in in-game advertising, with brands like Lunchables leading the way in leveraging the immersive experiences offered by augmented reality to connect with consumers in exciting new ways.