Incense is a fragrance used to lure Pokemon out of hiding and draws them to your location. Only you can see the Pokemon this lure brings so it will not benefit any other players in the area.
Many people are tempted to use incense whilst sat at home, at work or other places where you are unable to walk around to find Pokemon to catch. Whilst this will work and lure a Pokemon to your location once every 5 minutes or so, the source code has revealed that this isn’t the best way to use this item.
If you really want to maximize your incense usage, be sure to stay on the move once you have activated one. There have been reports of Pokemon spawning once a minute if the player moves 200m between each spawn. It appears Niantic are keen to keep us on the move!
Unless you plan on buying any more items in the shop, be sure to use incense wisely as you only start the game with 2, and will only receive more upon hitting the levels 5, 7, 10, 15, 20 and 25.
1 Incense = 80 Pokecoins
8 Incense = 500 Pokecoins
25 Incense = 1250 Pokecoins