Sponsored locations in Niantic's games, such as *Pokémon Go*, significantly impact revenue through a cost-per-visit (CPV) model. This model involves partners paying Niantic for each unique visitor attracted to sponsored locations, such as McDonald's or Starbucks. The cost per visit can range from $0.15 to $0.50, depending on the agreement[1][9]. This strategy drives foot traffic to physical locations, converting visitors into potential customers for the sponsoring businesses. For example, if a location attracts 2,000 visitors daily at $0.15 per visit, it could generate $300 per day for Niantic, or up to $1,000 per day at $0.50 per visit[9]. This model is particularly effective for location-based games like *Pokémon Go*, which has attracted hundreds of millions of visitors to sponsored locations[1].
On the other hand, Scopely's partnerships focus on in-app purchases and advertising within its games. Scopely generates revenue primarily through free-to-play models, where players can make in-app purchases for virtual goods, power-ups, and premium features[2]. Additionally, Scopely partners with brands to integrate advertising into its games, leveraging its vast and engaged user base[2]. Unlike Niantic's location-based sponsorship model, Scopely's partnerships are more focused on digital engagement and monetization strategies that enhance the gaming experience. Scopely's success in cross-IP collaborations, such as with Marvel and Star Trek, further expands its revenue streams through licensing and merchandising opportunities[2][6].
The acquisition of Niantic's gaming division by Scopely for $3.5 billion marks a strategic expansion into augmented reality (AR) and location-based gaming, potentially combining Scopely's digital monetization expertise with Niantic's AR capabilities[3][4]. This deal could enhance revenue growth by leveraging Niantic's loyal fanbase and Scopely's expertise in live-service games, potentially creating new opportunities for both digital and location-based revenue streams[3][7].
Citations:
[1] https://www.reddit.com/r/pokemongo/comments/oz8hdd/pok%C3%A9mon_go_makes_15_to_50_per_sponsored_location/
[2] https://vizologi.com/business-strategy-canvas/scopely-business-model-canvas/
[3] https://investgame.net/news/3-5b-move-for-pokemon-go-scopely-looks-to-take-over-niantic-s-gaming-division/
[4] https://www.theverge.com/news/615267/niantic-pokemon-go-scopely-acquisition-deal
[5] https://econsultancy.com/are-sponsored-locations-in-games-good-business-for-smbs/
[6] https://canvasbusinessmodel.com/products/scopely-business-model-canvas
[7] https://gameworldobserver.com/2025/03/12/scopely-niantic-game-business-3-5-billion-acquisition
[8] http://www.forbes.com/sites/paultassi/2025/03/12/niantic-just-sold-off-pokmon-go-so-what-changes-now/
[9] https://techcrunch.com/2017/05/31/pokemon-go-sponsorship-price/
[10] https://www.hollywoodreporter.com/business/digital/pokemon-go-studio-niantic-sold-scopely-1236161480/
[11] https://nianticlabs.com/en/sponsoredlocations/
[12] https://www.polygon.com/pokemon-go/538132/pokemon-go-niantic-games-sold-scopely-acquisition