We will go into more detail later on some of the many functions beacon can carry out. Customers were also tracked on how long they spent looking at an item and their method of purchase in order for the retailers to form a more accurate and personalized marketing strategy. This offers a cheaper and lower maintenance alternative to Wi-Fi for indoor navigation. Early Some of the largest and most downloaded apps, including Facebook and Shazam, begin integrating beacons into their functionality.
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Eddystone is designed to provide location-based content to your smartphone. Being compatible across platforms, it aims to encourage developers to work with beacon technology. Late With users needing to download apps to receive proximity marketing from beacons the popularity in retail begins to stall. However, Google works on making it possible for people to use the feature without downloading any apps, resulting in a resurgence in popularity.
Aug Bluetooth states that beacon technology will become the foundation of the Internet of Things. Late - Present: Google pilots Project Beacon. Now, you are probably asking, what does this technology actually mean to me a marketer or local business owner? This next section will cover the benefits of beacon technology and just how these could improve your business.
The technology itself has lots of applications and potential. Some functions were available when the beacons were first introduced, and some have become available as the technology has advanced. Businesses and marketers spend billions each year on their online advertising efforts; therefore, understanding your offline attribution is more important than ever. However, by tracking key interaction points of users that have clicked on your digital ads you can understand how effective your digital ads are at driving customers and sales to your store.
A typical example could go like this:. Step 2: Your Google search ad appears. Step 3: User clicks on the search ad, browses the product, then closes their phone. Step 4: This user decides they want to try the shoes on before buying, so they walk into your shop. And voila, by installing a beacon in your shop, you have dramatically improved your attribution modelling. By logging actual store visits from your search ads, this technology will help you understand the impact and effectiveness of your search ads.
If you see they are driving lots of visits to your shop, you may want to invest more in search. However, if you find very few users are following up their initial interest with a store visit, then you might not see a large enough ROI from your search ads. By gathering as much data as possible on your marketing activity, you can better understand what is working for you and what is not — and you can adapt your marketing strategy accordingly.
This was initially the biggest selling point of beacon technology when beacons were released in Mobile promotions reach potential customers when they are most likely to make a purchase. According to Robert McCourtney, from Metamend, the following advantages can be seen from location and proximity marketing paraphrased here :.
For retailers, marketers, and independent advertisers, proximity and location-based marketing efforts generally leverage one of five technologies described in detail in upcoming sections of this chapter—Bluetooth, WiFi, infrared IR , near field communication NFC , and ultra-wide band signals UWB.
Navigate the challenges of location-based technologies
Location-based marketing can also be done in coordination with carriers. Mobile phone carriers can determine where their subscribers are based on GPS data from the phone, or based on the triangulation of radio signals sent to and from the phone. In this model, advertisers work directly with the carrier to determine what locations they want to target with location-based messages.
The carrier then works with the advertiser to determine pricing, the duration of the campaign, and what the message will say. These types of campaigns generally use text or picture messaging, because the carrier has the ability to send their subscribers text messages, without the cost of the text message appearing on their subscribers' bills, which is very important to the subscribers.
Location-Based Marketing Explained
Bluetooth technology uses radio bands to transmit signals to Bluetooth-enabled devices, including mobile phones, handheld computers, and laptops. With this technology, a small server can be placed in any location and set to send out coupons, barcodes, applications, vCards, vCal, video, MP3, MP4, and text messages also known as BlueCasting. It generally works in a circular m radius, but like all signals, it can be hindered by thick concrete walls or other obstacles. Bluetooth marketing is generally used to simultaneously target shoppers in a retail location, as well as passersby outside the retail location see Figure 6.
Figure 6. Bluetooth broadcasting systems can also be set up in posters or worn by promoters, to encourage passersby to enable their Bluetooth devices and download promotional information about a product or event. Some brands are even placing Bluetooth broadcasting systems in bars and clubs, and even at the beach or at music festivals to engage the local audience with mobile media and promotions.
When the server is set up, it can be programmed either to broadcast the same message throughout the day or to broadcast different messages at different times of day. All Bluetooth devices have specific numbers associated with them that never change. When a Bluetooth-enabled handset enters the range of the server, the server captures that number and information about the handset.
It then queries a database to ascertain what, if any, communications have been sent to that device previously. For example, mattress stores may only want location-based audiences that have visited in the last 7 days.
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Higher selling price items are purchased less frequently, with much research done online and ahead of time, requiring marketers to act fast. While there are dozens of niches within retail, here are a few that we see using location-based marketing most frequently.
Car dealers have also become skilled at location-based marketing, prepped by a long history of trying to ensure their campaigns reach their local market. There are two primary audiences in automotive: those in the market for a new car and those that need their car serviced. Similar to the retail example with high average selling prices, automotive marketers know that once someone shows up on the lot to purchase a new car, their buying cycle is almost complete.
For this reason, marketers use both real-time geofencing as well as geotargeting by looking back over a five to seven day period.
Types and examples of location targeting advertising techniques
The use case for driving service visits with location-based marketing is also straightforward. Dealers build location-based audiences that visit the major oil change chains, like Jiffy Lube, in order to win the business of those customers. The marketing techniques of geotargeting, geofencing, and geoconquesting are also a natural fit for food and dining establishments, with one caveat.
Location-based audiences built for single location restaurants or establishments are typically never large enough to create a meaningful campaign for their own location. However, a local coffee shop could easily run campaigns to Starbucks and Dunkin audiences in order to win their business. For brands with both physical locations and e-commerce channels, location-based marketing works well. Pure-play ecommerce retailers and brands can also take advantage these strategies, although the use case is different, and primarily focused on geoconquesting.
For example, Zulily , which sells a wide variety of products, may decide they wish to bolster their shoe business. As one component of their marketing strategy, they would run location-based marketing campaigns to audiences that have visited their retail competitors: DSW, Rack Room, Shoe Carnival, Famous Footwear, etc. Location-based marketing can also work for companies that have products on the shelves at specific retailers. Location-based marketing can help reach historical customers from season to season and also help track and paint a picture of what trends may lead into other offerings at other times of the year.
Because location-based audiences begin with opted-in data from a mobile phone, the simplest place to run a location-based marketing campaign is on a mobile device. There are many companies that make the process of finding, building, and reaching the audience straightforward. The farther away a marketer moves from the mobile device, the more challenging it becomes, and sometimes more costly, to reach location-based audiences. The social media channels — Facebook, Instagram, Snapchat, and Twitter — as well as Google, not only provide the ability to reach location-based audiences on their mobile apps, but also when people are browsing on mobile web and desktop.
They do this by matching the login credentials to the various devices someone may use. In order to serve geotargeted ads to audiences while using their desktop computers, marketers must work with companies that perform cross-device matching. While Reveal Mobile does not perform any cross device matching, the companies that do so enable this by matching mobile devices to desktop computers. This can occur by synchronizing website cookie data to smartphones, or by matching the IP addresses that the various devices connect to.
This same process of cross-device matching can then be used to match mobile audiences to smart TV, or over-the-top OTT viewers. Mobile audience marketplaces have platforms you can login to and audience builders where you can browse and select the audience you need from a wide variety of providers.
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