The definition of proximity marketing via Wikepedia.com 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.” In other words, if you have a cell phone in the proximity of a marketing broadcast, you would be able to receive the message or advertisement.

Here’s how it works. Imagine you’re walking through a mall, and you pass a proximity broadcast station. The key is to have your phone on and in “discoverable” mode. This will allow all possible ads in the area to “hit” your phone – asking if you want to receive free content from the provider. For example, say you’re shopping for gym equipment at a specialty shop and they have a proximity marketing station set up. If your phone is in discoverable mode, you’ll receive a message asking if you want to receive free content from “ABC Company”. Think of it as a virtual billboard or flyer advertisement. This form of advertising has been in use for quite some time in Europe, as well as various other overseas locations. There are dozens of companies already in full swing of promoting Bluetooth proximity marketing, with many more in the start up phase here in the United States today.

Proximity marketing can also be received via laptop or PDA. The range and accessibility to most Bluetooth proximity marketing depends on your equipment, many which don’t require pairing for receipt of text or graphics. The average range of Bluetooth proximity marketing is 100 meters, although with advances in technology, this distance is increasing. Although some critics of the technology claim this as a potential problem, we can refer to the virtual billboard idea. The billboard doesn’t move with the driver as they pass it on the road, but looks for an instantaneous response to the ad in the general vicinity. The same is true of proximity marketing.

Going paperless has been a concept for so long that it can be taken for granted in most businesses. Bluetooth proximity marketing is simply the next technological step for businesses to take.

Source: http://mobiletvtechnology.blogspot.com

A Bluetooth network which transmits digital content directly to users’ mobile phones, has more than 1,800 nodes in restaurants, cafés and other leisure venues in and around Beijing and Shanghai. In Beijing alone, the network covers the International Trade Center, the Financial District, the Zhongguancun commercial district, the Wangfujing and Xidan shopping districts, the Dongzhimen transportation node, the Xizhimen subway area and other transportation hubs. The network has broadcast campaigns for Coca-Cola. Other clients include BMW, Absolut Vodka, Ford, Chevrolet, Nokia, Nike and JCDecaux, as well as the 2008 Formula 1 Chinese Grand Prix, held in Shanghai in October. On average, there has been a 35 percent opt-in rate among users who decide to download information on their cell phones. Coca-Cola ads and other content were downloaded 880,000 times throughout the month-long campaign. The high opt-in rate is not very surprising because there are a lot of people living in Beijing and Shanghai, where both cities have a population of around 17 million. The Bluetooth hotspots are placed in very high-traffic areas. Proximity marketing works because the out-of-home media industry in China is booming, and Bluetooth adds to the value of a new OOH media campaign. The success of campaigns demonstrates the appeal of mobile phone technology, especially among China’s younger generation. The mobile phone population is growing like crazy, reaching almost 600 million this year.  Young people between the ages of 13 and 28 love Bluetooth downloads because they’re free, fast and fun.

If one-to-one contact with consumers is marketing’s holy grail, could Bluetooth be the means to light the way? A growing number of mobile phones and devices are now equipped with wireless technology for sending and receiving files. Say goodbye to handing out paper flyers; Bluetooth gives proximity marketing a direct line to young, technologically savvy consumers.

The attractions of Bluetooth are numerous. It doesn’t use the normal mobile networks, so there are none of the data charges associated with downloading content. Consumers can access Bluetooth content completely free. Also, the process of getting the content is pretty straightforward and quick; you are asked if you want to download an item and it then happens automatically if you reply ‘yes’.

In a marketing context, the technology’s short range (around 30m) means brands can deliver location-specific content. A download at a particular site might be a voucher at a convenience store, a music video at a concert, movie trailers at a cinema, match footage at a sports stadium or tourist information at a bus stop. Early findings suggest it’s best paired with a traditional ad format such as a billboard or poster with a call to action.

The medium also provides valuable customer data. Although marketers can’t harvest demographic information about participants, they know who has seen an ad and acted on it. In a store, they would know how many downloads subsequently turned into product enquiries or sales.

Unlike text messages, Bluetooth can handle very large files. “It’s a chance to do something in a range of media – text, graphics, video, sound – and it’s quite cheap and cost-effective,” says Ronan O’Kelly, managing director of content delivery firm iMobile. “You can put more money into creative and production because the delivery costs less.”

A proximity marketing provider, is currently running trials at more than 20 Spar stores around Dublin. A call-to-action banner in the shop reminds customers to enable Bluetooth on their phones. In return, they can receive a real-time news and information service with money-off vouchers from three participating brands: Cadbury, Mars and Red Bull Cola. In one store alone, the redemption rate has been 29pc.

For an average advertising medium, 1-2pc redemption rate is considered a success,  Bluetooth Marketing can be seen as a good way for brands to promote their new products. Even if an advertiser doesn’t want to give something away, they can still have their branding around the news service, so it’s linked in with other information that’s worthwhile.

The ad of choice Whereas today’s consumer is often portrayed as jaded and willing to avoid ads given any opportunity, marketers are encouraged by high levels of acceptance for Bluetooth. In a Universal McCann survey, it was the most popular mobile ad format among recipients, with 71pc in favour, compared to 61pc who rejected banner or TV ads on their handsets.

Brands get Bluetooth

It’s surely no coincidence that communications companies are among Bluetooth marketing’s early adopters. O2 and UPC have run recent campaigns using the technology, and both plan to do so again.

In what’s claimed to be the biggest Bluetooth marketing initiative in Ireland so far, attendees at July’s Oxegen music festival could download a mobile service featuring real-time information such as interactive maps, campsite details, stage times, competitions and footage from bands at the event. O2 sponsored the service, which was downloaded by more than 16,000 out of 49,000 festival-goers with Bluetooth-enabled phones.

Jonnie Cahill, head of communications and sponsorship at O2 Ireland, says the company deliberately chose to be involved with a valuable service rather than one simply beaming out irrelevant messages. “We weren’t just doing this for the sake of it. What you do has to be anchored in what consumers need, not what you need,” he insists. “As with any emerging technology, the question isn’t ‘What’s possible?’, it’s ‘Is what’s possible good?’”

Cahill says Bluetooth fits in with a wider branding effort at Oxegen, including everything from a sponsored stage to free phone chargers. Other projects are also up for consideration. More concrete plans are already under way to enhance the service for next year’s Oxegen festival, Cahill confirms.

“Will the Bluetooth services immediately trigger a stampede of people to the brand? Probably not. But in the context of our wider involvement in music we’re showing people this is a brand they should be joining. That’s how we believe it will attract people to the network. It’s one part of the jigsaw.”

Mobile isn’t a new channel for cable TV and broadband provider UPC Ireland to use to communicate with customers. It already sends text reminders for services like installations or repairs. UPC’s Bluetooth campaign ran at 10 sites across Dublin, including at bus shelters. The response rate was downloads to 11,500 out of 65,000 mobiles detected.

“Compared to other media, that’s a fantastic response,” says Rhona Bradshaw (MMII), head of marketing with UPC Ireland. “With Bluetooth you can see the results; with traditional outdoor advertising that’s very hard to do.”

Bradshaw sees Bluetooth as a complement to existing marketing efforts, giving UPC reach into other consumer types. “It meant our TV ad got a lot more attention than it would have and I think we hit customers or potential customers who we wouldn’t necessarily attract through our regular advertising channels. We’ll definitely use it again for our rebranding campaign in the new year.”

Future efforts are likely to involve more high-end content delivered to people’s phones, but Bradshaw rejects the idea that consumers may be turned off by intrusive ads. “Customers have always had power, even with traditional formats. It’s up to them to decide whether to interact with it, whether it’s a TV ad or direct marketing. People always drive what marketers do and how we speak to them.”

 February 12^th 2009  

·         “Bluetooth Proximity Marketing offers a great new opportunity for companies to market to their target audiences. Imagine going into a shopping centre and being presented with the offers available at that time, direct to your handset. At Masters Allen, we believe that effective marketing can be established through any number of mediums, picking relevant media that suits the purpose and testing it will ensure that the marketing process is effectively delivered.”

·         “Multiple media advertising and marketing in this communication era is essential in getting in touch with your target audience. By understanding your marketing, you can identify marketing streams that will bring real return on investment. Bluetooth Marketing is now low cost to implement so the returns can be considerable. What is important with all marketing is to ensure that the communication is consistent in design and integrated with an overall marketing plan.”

QUOTES, ATTRIBUTABLE TO SUANNE CLARKE OF LIVEAD MOBILE

·         “Bluetooth Proximity Marketing provides businesses with a highly targeted and cost-effective way to reach consumers, with measurable results. Through our collaboration with Masters Allen, we are excited to offer a leading-edge marketing tool to help businesses improve their sales, profits and brand awareness and to distinguish themselves from their competitors.”

QUOTES, ATTRIBUTABLE TO MARK HILL OF RAFFIA FLOWER DESIGN

·         “The use of Bluetooth as a medium to reach the consumer is highly relevant to small business and small retailers. With its short range (up to 250 meters) businesses and retailers can target passers by on the high street with timely and relevant messages, straight to their mobile phones.”

Please contact Jon Allen to arrange an interview and/or for additional quotes.

Masters Allen’s integrated approach to design and marketing offers clients a unique solution to the marketing function. No longer do organisations need to employ a separate graphic design agency, website design agency, marketing agency or PR agency. As a truly integrate agency, Masters Allen offers joined-up thinking and delivers seamless communication across a broad range of media, with a real focus on a return on investment. Masters Allen is based in Sileby in Leicestershire in the East Midlands. For more information on Masters Allen’s approach to integrated marketing go to www.mastersallen.co.uk.

LiveAd Mobile is a Bluetooth Marketing company based in Coalville, Leicestershire, that has developed a new software application for sending Bluetooth Proximity Marketing messages. This software is installed onto a users existing PC rather than specialist equipment being required, therefore offering a low cost solution for location based marketing requirements.