Incense

Incense, when activated, shows a pinkish aura around the trainer. The effect will follow a trainer if the trainer continues to travel, though part of the appeal is being able to keep catching while remaining in one place. Pokémon lured by the incense will also have a pink aura.

The Pokémon spawned by the incense do not exist in the "Nearby" box. It spawns new Pokémon for a trainer to catch. The incense will spawn 1 Pokémon every 5 minutes if the trainer is standing still, and 1 Pokémon every 1 minute or 200 meters (whichever happens first) while moving. Other trainers are not affected by this item.

Incense can't be obtained from PokéStops, but it can be purchased from the Shop.

Description
Incense with a mysterious fragrance that lures wild Pokémon to your location for 30 minutes.

Types
There are four types of incense that can be used to attract Pokémon. These latter three items are not yet available in the game as of version 0.35.0 and are based on purely on speculation.

Ordinary
Attracts all types of Pokémon.

Spicy
May attract Fire and possibly  Electric Pokémon.

Cool
May attract Water and possibly  Ice Pokémon.

Floral
May attract Grass and possibly  Bug Pokémon.

Trivia

 * An alternate version of Incense known internally as INCENSE_ORDINARY exists in the game's data. It has the exact same spawn rate as normal Incense, but a significantly different appearance. This may be the new default when more incense types are added.