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b e acon
tech nology
JUNE / 2014
What brands and
marketers need to know
Ever since Apple introduced
its own trademarked “iBeacon”
technology at their WWDC
conference in 2013, marketers
and retailers around the
world have been unable to
clear a persistent ringing
from their ears.
In most cases, though, they’ve
had trouble defining exactly
what that ringing is. So let us
clear the air and state it as
simply as possible:
that ringing is the sound of a
beacon-enabled future, one in
which communication between
brands and consumers is more
direct, and more physical,
than any technology has ever
before allowed.
however, the technology is
in its nascent stages. While
beacons themselves are
straightforward, the creative
potential and limitations of
beacon technology remain
unclear. Most important, there
has yet to be a well-defined
standard for a beacon-
triggered user experience.
The full potential of beacon
technology will take
		experimentation
		time
		resources
		creativity
It’s not going to be
“plug and play.”
what are beacons?
how do they work?
bea·con n. /|
bēkən/
small, low-powered
transmitters that communicate
with smart devices in a
predefined physical radius
The “iBeacon” nomenclature confusion arose in 2013, when Apple
took Bluetooth LE technology and packaged it into iOS7 and
all of their newest devices. Then, using their standard “i-Naming”
convention, Apple effectively branded their version of the
technology as “iBeacon.” While it is true that many beacon
manufacturers are indeed working with Apple’s trademarked
iBeacon technology, it should be noted that any Bluetooth
LE-enabled device, including devices running Android, can
interact with beacons.
Beacons tie physical location to content delivery,
allowing brands to effectively trigger messages,
promotional offers, or unique app experiences based
on a user’s precise physical location.
Beacon technology
was made possible
and practical by the
invention of Bluetooth LE,
a low-cost, low-energy,
proximity-based network
that allows Bluetooth-
enabled devices to
interact with other
devices without
draining the battery
of either.
GPS
beacon technology stands
in contrast to GPS – which
is what most location–
based services have used to
this point – in that it uses
proximity mapping rather
than satellites or cell tower
triangulation to identify a
user’s position. This means
that it can work effectively
indoors, and if multiple
beacons are employed at once,
can pinpoint a user’s location
down to centimeters.
NFC
Beacon technology also
contrasts with NFC in that
it can connect devices from
distances of more than a
few inches and does not
require the mobile device
to have an NFC chip. To give
some perspective: NFC chips
have found their way into
only a limited selection of
phones, Apple’s not included,
while Bluetooth is already
incorporated into most.
BASIC Beacon INTERACTION
A preprogrammed signal is emitted from one beacon – let’s
call it Device A – and whenever a second, Bluetooth-LE
enabled mobile device, Device B, comes within a predetermined
vicinity–whether it be one foot, five feet or fifty feet–Device A
triggers a notification on Device B.
A
B
The signals coming from Device A, and the action it triggers
in Device B, can be preprogrammed through a content
management platform and can be changed, tailored and
altered at any time.
The proximity at which an interaction is triggered can be pre-
programmed to various intervals ranging from a few centimeters
to nearly 50 meters, and the connection, in its most basic form,
does not require Wi-Fi or Internet access.
The beacon devices themselves are just small devices–cheap, around $30
to $60, and of varied size, depending on the manufacturer–that contain
computer chips. These chips emit a constant Bluetooth LE signal, which
can then be recognized by a Bluetooth LE-enabled mobile device.
30$
60$
how does the
mobile device
hear the beacon?
In order for a user’s mobile
device to receive the signal
from a beacon:
beacons may not be
the California gold rush,
but they present a golden
opportunity for brands
and marketers with an
explorative mindset.
1
2
3
	 the user’s device must have an app
	 listening for the beacon’s signal
	
	 Bluetooth must be turned on
	
	 the user must have granted the app
	 permission to receive push notifications
why is beacon
technology
revolutionary?
People are
already
comfortable
with the idea
of a content
strategy for
social [media],
and beacons
will simply
require a
new content
strategy for
your physical
space. Chad Rodriguez,
sonic notify,
beacon manufacturer
Beacon technology has the
potential to fundamentally
disrupt the way brands think
about the intersection of
physical retail experience and
mobile experience.
To date, user-specific content strategy has been relegated
to online environments like social networks, where the
brand can either target individuals based on preference
or use retargeting campaigns that use browsing behavior
to dynamically create ad units.
A proximity-triggered content strategy for beacon-
enabled environments will, therefore, resemble the
complex, highly segmented content strategies that brands
and marketers have already learned to develop for social
media.
Beacon technology effectively
adds a physical component to
an already-existing targeted
outreach strategy, allowing
brands to reach a user based
on their precise physical
location, in addition to every
other existing parameter.
Using beacons
wisely, retailers
will be able to
play the part
of a gracious,
individually
attentive host,
combining
the users’
interests, intent
and physical
location.
Retailers have become savvy at acquiring and cataloging an
endless amount of data on their customers’ browsing patterns,
areas of interest, and purchase intent.
Applied thoughtfully, beacons
will allow retailers to
leverage this data in a physical
environment, both to recognize
customers as they enter a store,
and to deliver custom-tailored
content, offers, and experiences
as they progress through the
aisles.
If a customer enters a physical space–retail or otherwise–
and a thoughtful, beacon-triggered message welcomes them
and anticipates their needs, it is likely that the customer will
enjoy the experience.
how are beacons
being used today?
s p o rts
ar e na s
R e tai l
S pace ai r p o rts
livi n g
s pace s m u s e u m s
e ve nt
ar e a sr e stau r ants
s p o rts
ar e nas
One of the most significant adopters of beacon
technology has been Major League Baseball,
which has implemented beacon technology in
2030of ballparks
it’s kind of
a no-brainer.
mobile and
digital
experiences
are paramount
to our fan
experience.
beacons
open up a
world of
possibility.Bill Schlough
Chief Information Officer
san francisco giants
The MLB’s beacons communicate to fans through
the MLB AtTheBallpark app, which, once installed,
encourages fans to check in at entry points in order to
unlock special offers.
e ve nt
ar e as
At SXSW Interactive 2014, beacons were featured
prominently, not only as a method of providing
information, but also as a way of fostering a sense of
community among festival attendees.
Users who downloaded the official SXSW app – powered
by Eventbase – were treated to a smattering of beacon-
enabled perks, depending on their location. For instance,
those in the vicinity of the registration area, typically a
dreaded waiting zone, were given access via beacons to
a Registration Quickcode, thereby expediting the tedious
process.
Beacons were also used to bolster a sense of community
and even initiate group conversations among attendees.
If, for example, a user walked into a particular session, a
beacon in the room would trigger an invitation to an in-
app “chat room,” in which all of the users within range
of the beacon could engage in conversation. Festival
attendees and bloggers–often a tough crowd to sell on
new technology–generally responded favorably to the
use of beacons at SXSW, and some even suggested that
Eventbase could have been more aggressive with its
notifications.
Some of the most clever usage of beacon technology
has been through the creation of large-scale interactive
events and exhibits. At CES 2014 in Las Vegas, for instance,
beacons formed the backbone of an interactive scavenger
hunt; and in May 2014, beacons were used to create a
New York City Beacon-Crawl–a clever take on the popular
pub crawl–in which beacons are scattered throughout
bars and restaurants within the city, and participants are
rewarded upon entry.
r e tail
s pace
The greatest opportunity for
beacons is within the retail
space, as the technology
unveils an ability greater
than we’ve ever had to
communicate with consumers
entirely based on where they
are located in a store.
Surprisingly though, this
is the area that has been the
slowest to grasp for the
technology.
Shortly after announcing iBeacon, Apple
introduced them into all 254 of their U.S.
brick-and-mortar stores, easily the most
expansive implementation of the technology in
the retail space. Upon entering an Apple store–
with Bluetooth enabled and the Apple Store
app installed–users are welcomed with links to
EasyPay, support, and gift recommendations,
all designed to make the shopping experience
both easier and more interactive.
However, outside sources have reported that
the technology’s implementation has been
far more sparse–and less creative–than one
might expect from the company effectively
pushing the technology. Additional retailers,
such as Macy’s and American Eagle, have also
introducedbeaconsintotheirstores,but,again,
their efforts have largely been on a trial basis
and have not made extensive creative use of
the technology.
what comes next?
how can marketers
push forward?
REDEFINING
HOW
CONSUMERS
AND BRANDS
THINK ABOUT
BLUETOOTH LE
Many brands
are concerned
that consumers
will, for fear
of battery
loss, disable
Bluetooth on
their devices.
And without
Bluetooth
enabled, a
brand’s app
can’t listen for
beacons.
However, it is likely
that Bluetooth
deactivation will
become irrelevant:
1
2
3
	 as consumers learn to disassociate its
	 activation with decreased battery life,
	 as Apple’s vested interest in being a 				
	 beacon leader matures.
	 as Apple – and perhaps Google as well –
	 makes it far more difficult for users to 			
	 disable Bluetooth, perhaps burying the toggle
	 deeper into the general settings of the phone,
	 or actively encouraging users to leave it 		
	enabled.
a user-first
approach
to push
notifications
Brands also worry that
customers will be put
off, rather than pleased,
by an increase in mobile
notifications. The fear of
burdening consumers with
a tidal wave of unwanted
notifications is a genuine
concern, and marketers will
undoubtedly have to rely on
common sense when designing
their beacon environments.
Recent research indicates,
though, that as long as
notifications are kept
relevant, consumer friendly,
and creative, they will be well
received by consumers.
72%
of consumers say that a
relevant mobile offer pushed
to their smart device would
significantly influence their
decision to make a purchase
67%
of consumers have received
a push notification to their
smart device over the past
six months
79% made at least one
purchase as a result
The mobile marketing platform Swirl conducted a
beacon study based on what we already know about
consumer behavior in a retail environment. Their findings
confirm that many consumers are open to notifications,
as brands can provide offers and perks that are relevant
to them and add value to their time in the store. A few
highlights from their study:
81% read or opened them
most of the time
85%
of consumers realize that
online retailers track their
shopping behavior, but accept
that their doing so will result
in relevant offers/promotions
for the consumer
75%
of consumers prefer
that retailers use personal
information, so long as it
improves the shopping
experience.
Asimilar study from Monetate–which focused on online
retail but studied the same general behaviors–went
even further to show that consumers are generally open
to having retailers interact with them, so long as such
interactions play a positive or helpful role in their shopping
experience. As that study shows:
GETTING AN APP
IN THE CONSUMERS’
HANDS
After all is said and done, a Beacon interaction requires
a companion app on the user’s device. This has been
the most feared component of beacon technology for
large brands who, in order to benefit from the technology,
must first have a considerable audience of users on their
app.
Generally speaking, we know that branded apps from
retailers tend to see low usage, particularly in-store.
While they are often an excellent resource for engaging
customers at home (whether for browsing, gathering
product information, or compiling a wish list) retail-
focused apps have generally not shown their value in an
in-store context.
This is where beacons have the greatest potential, and
could not only change customers’ shopping experiences,
but could also lead to a more positive and sustained
engagement with a brand’s app. In a beacon-enabled
environment, a store’s app becomes the anchor for an
experience unlike any a customer has experienced in a
brick-and-mortar store. Assistance can arrive sooner,
offers can present themselves at only the most opportune
and relevant moments, and the checkout process itself
can be completely streamlined.
So to flip the argument on the app-doubters: if none of this
would be possible without the app, won’t customers want
to download the app just so that they can experience it?
KEY TAKEAWAYS
FOR BRANDS
Beacons are no longer on the
horizon. They have arrived.
Beacons are affordable and simple
to implement. They are also easily
scalable.
Beacons are the new mobile, and are
creating a new content platform
on which brands and consumers
can interact in a physical space.
Consumers are ready.
The winners of beacon technology
will be the ones who host their
customers rather than sell to their
customers.
written by
DANIEL CHARNESS
DAVID MARTINEZ
ZACH PENTEL
edited by
DANIEL CHARNESS
designed by
SCOTT MODRZYNSKI
WWW.BBDO.COM
WWW.PROXIMITYWORLD.COM
WWW.DIGITALLABBLOG.COM

More Related Content

Beacon Technology: What Brands and Marketers Need to Know

  • 1. b e acon tech nology JUNE / 2014 What brands and marketers need to know
  • 2. Ever since Apple introduced its own trademarked “iBeacon” technology at their WWDC conference in 2013, marketers and retailers around the world have been unable to clear a persistent ringing from their ears. In most cases, though, they’ve had trouble defining exactly what that ringing is. So let us clear the air and state it as simply as possible: that ringing is the sound of a beacon-enabled future, one in which communication between brands and consumers is more direct, and more physical, than any technology has ever before allowed.
  • 3. however, the technology is in its nascent stages. While beacons themselves are straightforward, the creative potential and limitations of beacon technology remain unclear. Most important, there has yet to be a well-defined standard for a beacon- triggered user experience.
  • 4. The full potential of beacon technology will take experimentation time resources creativity It’s not going to be “plug and play.”
  • 5. what are beacons? how do they work?
  • 6. bea·con n. /| bēkən/ small, low-powered transmitters that communicate with smart devices in a predefined physical radius The “iBeacon” nomenclature confusion arose in 2013, when Apple took Bluetooth LE technology and packaged it into iOS7 and all of their newest devices. Then, using their standard “i-Naming” convention, Apple effectively branded their version of the technology as “iBeacon.” While it is true that many beacon manufacturers are indeed working with Apple’s trademarked iBeacon technology, it should be noted that any Bluetooth LE-enabled device, including devices running Android, can interact with beacons. Beacons tie physical location to content delivery, allowing brands to effectively trigger messages, promotional offers, or unique app experiences based on a user’s precise physical location.
  • 7. Beacon technology was made possible and practical by the invention of Bluetooth LE, a low-cost, low-energy, proximity-based network that allows Bluetooth- enabled devices to interact with other devices without draining the battery of either.
  • 8. GPS beacon technology stands in contrast to GPS – which is what most location– based services have used to this point – in that it uses proximity mapping rather than satellites or cell tower triangulation to identify a user’s position. This means that it can work effectively indoors, and if multiple beacons are employed at once, can pinpoint a user’s location down to centimeters.
  • 9. NFC Beacon technology also contrasts with NFC in that it can connect devices from distances of more than a few inches and does not require the mobile device to have an NFC chip. To give some perspective: NFC chips have found their way into only a limited selection of phones, Apple’s not included, while Bluetooth is already incorporated into most.
  • 10. BASIC Beacon INTERACTION A preprogrammed signal is emitted from one beacon – let’s call it Device A – and whenever a second, Bluetooth-LE enabled mobile device, Device B, comes within a predetermined vicinity–whether it be one foot, five feet or fifty feet–Device A triggers a notification on Device B. A B
  • 11. The signals coming from Device A, and the action it triggers in Device B, can be preprogrammed through a content management platform and can be changed, tailored and altered at any time.
  • 12. The proximity at which an interaction is triggered can be pre- programmed to various intervals ranging from a few centimeters to nearly 50 meters, and the connection, in its most basic form, does not require Wi-Fi or Internet access.
  • 13. The beacon devices themselves are just small devices–cheap, around $30 to $60, and of varied size, depending on the manufacturer–that contain computer chips. These chips emit a constant Bluetooth LE signal, which can then be recognized by a Bluetooth LE-enabled mobile device. 30$ 60$
  • 14. how does the mobile device hear the beacon?
  • 15. In order for a user’s mobile device to receive the signal from a beacon: beacons may not be the California gold rush, but they present a golden opportunity for brands and marketers with an explorative mindset. 1 2 3 the user’s device must have an app listening for the beacon’s signal Bluetooth must be turned on the user must have granted the app permission to receive push notifications
  • 17. People are already comfortable with the idea of a content strategy for social [media], and beacons will simply require a new content strategy for your physical space. Chad Rodriguez, sonic notify, beacon manufacturer
  • 18. Beacon technology has the potential to fundamentally disrupt the way brands think about the intersection of physical retail experience and mobile experience.
  • 19. To date, user-specific content strategy has been relegated to online environments like social networks, where the brand can either target individuals based on preference or use retargeting campaigns that use browsing behavior to dynamically create ad units. A proximity-triggered content strategy for beacon- enabled environments will, therefore, resemble the complex, highly segmented content strategies that brands and marketers have already learned to develop for social media. Beacon technology effectively adds a physical component to an already-existing targeted outreach strategy, allowing brands to reach a user based on their precise physical location, in addition to every other existing parameter.
  • 20. Using beacons wisely, retailers will be able to play the part of a gracious, individually attentive host, combining the users’ interests, intent and physical location.
  • 21. Retailers have become savvy at acquiring and cataloging an endless amount of data on their customers’ browsing patterns, areas of interest, and purchase intent. Applied thoughtfully, beacons will allow retailers to leverage this data in a physical environment, both to recognize customers as they enter a store, and to deliver custom-tailored content, offers, and experiences as they progress through the aisles. If a customer enters a physical space–retail or otherwise– and a thoughtful, beacon-triggered message welcomes them and anticipates their needs, it is likely that the customer will enjoy the experience.
  • 22. how are beacons being used today?
  • 23. s p o rts ar e na s R e tai l S pace ai r p o rts livi n g s pace s m u s e u m s e ve nt ar e a sr e stau r ants
  • 24. s p o rts ar e nas
  • 25. One of the most significant adopters of beacon technology has been Major League Baseball, which has implemented beacon technology in 2030of ballparks
  • 26. it’s kind of a no-brainer. mobile and digital experiences are paramount to our fan experience. beacons open up a world of possibility.Bill Schlough Chief Information Officer san francisco giants
  • 27. The MLB’s beacons communicate to fans through the MLB AtTheBallpark app, which, once installed, encourages fans to check in at entry points in order to unlock special offers.
  • 28. e ve nt ar e as
  • 29. At SXSW Interactive 2014, beacons were featured prominently, not only as a method of providing information, but also as a way of fostering a sense of community among festival attendees.
  • 30. Users who downloaded the official SXSW app – powered by Eventbase – were treated to a smattering of beacon- enabled perks, depending on their location. For instance, those in the vicinity of the registration area, typically a dreaded waiting zone, were given access via beacons to a Registration Quickcode, thereby expediting the tedious process. Beacons were also used to bolster a sense of community and even initiate group conversations among attendees. If, for example, a user walked into a particular session, a beacon in the room would trigger an invitation to an in- app “chat room,” in which all of the users within range of the beacon could engage in conversation. Festival attendees and bloggers–often a tough crowd to sell on new technology–generally responded favorably to the use of beacons at SXSW, and some even suggested that Eventbase could have been more aggressive with its notifications. Some of the most clever usage of beacon technology has been through the creation of large-scale interactive events and exhibits. At CES 2014 in Las Vegas, for instance, beacons formed the backbone of an interactive scavenger hunt; and in May 2014, beacons were used to create a New York City Beacon-Crawl–a clever take on the popular pub crawl–in which beacons are scattered throughout bars and restaurants within the city, and participants are rewarded upon entry.
  • 31. r e tail s pace
  • 32. The greatest opportunity for beacons is within the retail space, as the technology unveils an ability greater than we’ve ever had to communicate with consumers entirely based on where they are located in a store. Surprisingly though, this is the area that has been the slowest to grasp for the technology.
  • 33. Shortly after announcing iBeacon, Apple introduced them into all 254 of their U.S. brick-and-mortar stores, easily the most expansive implementation of the technology in the retail space. Upon entering an Apple store– with Bluetooth enabled and the Apple Store app installed–users are welcomed with links to EasyPay, support, and gift recommendations, all designed to make the shopping experience both easier and more interactive. However, outside sources have reported that the technology’s implementation has been far more sparse–and less creative–than one might expect from the company effectively pushing the technology. Additional retailers, such as Macy’s and American Eagle, have also introducedbeaconsintotheirstores,but,again, their efforts have largely been on a trial basis and have not made extensive creative use of the technology.
  • 34. what comes next? how can marketers push forward?
  • 36. Many brands are concerned that consumers will, for fear of battery loss, disable Bluetooth on their devices. And without Bluetooth enabled, a brand’s app can’t listen for beacons.
  • 37. However, it is likely that Bluetooth deactivation will become irrelevant: 1 2 3 as consumers learn to disassociate its activation with decreased battery life, as Apple’s vested interest in being a beacon leader matures. as Apple – and perhaps Google as well – makes it far more difficult for users to disable Bluetooth, perhaps burying the toggle deeper into the general settings of the phone, or actively encouraging users to leave it enabled.
  • 39. Brands also worry that customers will be put off, rather than pleased, by an increase in mobile notifications. The fear of burdening consumers with a tidal wave of unwanted notifications is a genuine concern, and marketers will undoubtedly have to rely on common sense when designing their beacon environments. Recent research indicates, though, that as long as notifications are kept relevant, consumer friendly, and creative, they will be well received by consumers.
  • 40. 72% of consumers say that a relevant mobile offer pushed to their smart device would significantly influence their decision to make a purchase 67% of consumers have received a push notification to their smart device over the past six months 79% made at least one purchase as a result The mobile marketing platform Swirl conducted a beacon study based on what we already know about consumer behavior in a retail environment. Their findings confirm that many consumers are open to notifications, as brands can provide offers and perks that are relevant to them and add value to their time in the store. A few highlights from their study: 81% read or opened them most of the time
  • 41. 85% of consumers realize that online retailers track their shopping behavior, but accept that their doing so will result in relevant offers/promotions for the consumer 75% of consumers prefer that retailers use personal information, so long as it improves the shopping experience. Asimilar study from Monetate–which focused on online retail but studied the same general behaviors–went even further to show that consumers are generally open to having retailers interact with them, so long as such interactions play a positive or helpful role in their shopping experience. As that study shows:
  • 42. GETTING AN APP IN THE CONSUMERS’ HANDS
  • 43. After all is said and done, a Beacon interaction requires a companion app on the user’s device. This has been the most feared component of beacon technology for large brands who, in order to benefit from the technology, must first have a considerable audience of users on their app. Generally speaking, we know that branded apps from retailers tend to see low usage, particularly in-store. While they are often an excellent resource for engaging customers at home (whether for browsing, gathering product information, or compiling a wish list) retail- focused apps have generally not shown their value in an in-store context. This is where beacons have the greatest potential, and could not only change customers’ shopping experiences, but could also lead to a more positive and sustained engagement with a brand’s app. In a beacon-enabled environment, a store’s app becomes the anchor for an experience unlike any a customer has experienced in a brick-and-mortar store. Assistance can arrive sooner, offers can present themselves at only the most opportune and relevant moments, and the checkout process itself can be completely streamlined. So to flip the argument on the app-doubters: if none of this would be possible without the app, won’t customers want to download the app just so that they can experience it?
  • 45. Beacons are no longer on the horizon. They have arrived. Beacons are affordable and simple to implement. They are also easily scalable. Beacons are the new mobile, and are creating a new content platform on which brands and consumers can interact in a physical space. Consumers are ready. The winners of beacon technology will be the ones who host their customers rather than sell to their customers.
  • 46. written by DANIEL CHARNESS DAVID MARTINEZ ZACH PENTEL edited by DANIEL CHARNESS designed by SCOTT MODRZYNSKI WWW.BBDO.COM WWW.PROXIMITYWORLD.COM WWW.DIGITALLABBLOG.COM