Proximity marketing is the localized wireless distribution of advertising content associated with a particular place. Transmissions can be received by individuals in that location who wish to receive them and have the necessary equipment to do so.
Distribution may be via a traditional localized broadcast, or more commonly is specifically targeted to devices known to be in a particular area.
The location of a device may be determined by:
- A cellular phone being in a particular cell
- A Bluetooth or WiFi device being within range of a transmitter.
- An Internet enabled device with GPS enabling it to request localized content from Internet servers.
- A NFC enabled phone can read a RFID chip on a product or media and launch localized content from internet servers.
Communications may be further targeted to specific groups within a given location, for example content in tourist hot spots may only be distributed to devices registered outside the local area.
Communications may be both time and place specific, e.g. content at a conference venue may depend on the event in progress.
Uses of proximity marketing include distribution of media at concerts, information (weblinks on local facilities), gaming and social applications, and advertising.
Bluetooth, a short-range wireless system supported by many mobile devices, is one transmission medium used for proximity marketing. The process of Bluetooth based proximity marketing involves setting up Bluetooth "broadcasting" equipment at a particular location and then sending information which can be text, images, audio or video to Bluetooth enabled devices within range of the broadcast server. Other standard data exchange formats such as Vcard can also be used. This form of proximity marketing is also referred to as close range marketing.
It used to be the case that due to security fears, or a desire to save battery life, many users keep their Bluetooth devices in OFF mode, or ON but not set to be 'discoverable'. Because of this, often regions where Bluetooth proximity marketing is in operation it is accompanied by advising via traditional media - such as posters, television screens or field marketing teams - suggesting people make their Bluetooth handsets 'discoverable' in order to receive free content - this is often referred to as a "Call-to-Action." A 'discoverable' Bluetooth device within range of the server is automatically sent a message asking if the user would like to receive the free content.
Current mobile phones usually have bluetooth switched ON by default, and a majority of users now leave bluetooth switched on for easy connection with car kits and headsets.
Some implementations of Bluetooth proximity marketing require users to run Java applications on their phones to enable them to receive content. This has the advantage that only those who choose to will receive content. Others require no handset-side software.
The diversity of mobile phones is huge. Screen sizes and supported file formats varies greatly. To obtain the optimal user experience with Bluetooth Marketing, the Bluetooth system must be able to automatically recognize phone models and deliver the proper content automatically.
Near Field Communication (NFC) tags are embedded in the NFC Smart Poster, Smart Product, Smart Book. The tag has a RFID chip with an embedded command. The command can be to open the mobile browser on a given page or offer. Any NFC-enabled phone can activate this tag by placing the device in close proximity. The information can be anything from product details, special accommodation deals, and information on local restaurants.
The German drugstore chain, Budnikowsky, launched the first NFC-enabled Smart Poster in October 2011 which allowed train commuters to tap their phones on the poster to shop and find more information. in November 2011, Atria Books/Simon & Schuster launched the Impulse Economy, the first NFC-enabled Smart Book.
In the UK NFC is being adopted by most of the outdoor poster contractors. Clear Channel have installed over 25,000 Adshel posters with NFC tags (and QR codes for Apple phones).
Retailers are also looking at NFC as it offers a cost effective method by which consumers can engage with brands but doesn't require integrating the technology into their IT systems - which is a barrier to many new technologies like BLE. A number of retailers have already started using NFC to enhance the shopping experience, Casino in France and Vic in Holland.
Proximity Marketing Strategy using NFC Technology has been widely adopted in Japan and uses 'pull' rather than 'push' marketing allowing the consumer the choice of where and when they receive marketing messages.
There are a number NFC-enabled phones entering the market spurred by NFC mobile wallet trials globally. NFC wallets include the Google Wallet and ISIS (mobile payment system). While mobile payment is the driver for NFC, proximity marketing is an immediate beneficiary in-market.
The question many ask is "when will Apple get NFC?" Recent reports reveal that Apple have filed several patents relating to NFC and many believe that commercial pressure will mean they will have to adopt it to keep up.
Proximity Marketing via SMS relies on GSM 03.41 which defines the Short Message Service - Cell Broadcast. SMS-CB allows messages (such as advertising or public information) to be broadcast to all mobile users in a specified geographical area. In the Philippines, GSM-based proximity broadcast systems are used by select Government Agencies for information dissemination on Government-run community-based programs to take advantage of its reach and popularity (Philippines has the world's highest traffic of SMS). It is also used for commercial service known as Proxima SMS. Bluewater, a super-regional shopping centre in the UK, has a GSM based system supplied by NTL to help its GSM coverage for calls, it also allows each customer with a mobile phone to be tracked though the centre which shops they go into and for how long. The system enables special offer texts to be sent to the phone.