A premium location attempts to attract more attention by being more visually and mechanically important to a player than a standard location. The two main distinctions between a premium and standard location is the type of gameplay and the average duration of player interaction time. 

Specific mechanics vary on a per game basis. In the case of Pokémon GO, a standard location is a PokéStop and a premium location is a Gym.
 
Standard In-Game Location
Standard plan helps you drive location awareness and moderate traffic. They appear in Pokémon GO as Pokéstops. At PokéStops, players can gather valuable in-game items such as PokéBalls.
 
Premium In-Game Location
Premium plan drives higher awareness and larger groups of players to your location who tend to stay longer for social gameplay. They appear in Pokémon GO as Gyms. At Gyms, players battle Pokémon and participate in Raid Battles with other players. 
 
Premium locations also offer scheduled mini-games. With a premium location, you can schedule traffic-driving special mini-game at your desired time. For Pokémon GO, this is a scheduled Raid Battle. During a Raid Battle, players work together to challenge a powerful Pokémon who has taken over the Gym.