Proximity Marketing
Published by Rudy De Waele October 22nd, 2006 in Mobile Apps, Mobile Marketing, Mobile Content, Analysis, Mobile Advertising, Viral, Usability, Wi-Fi, Bluetooth, mobile 2.0, Proximity Marketing, Image Recognition, Augmented Reality, nfc, rfid, QR codes, Ubiquitous Marketing, Mobile Monday Tags: Analysis, augmented reality, barcode, Bluetooth, daem interactive, futurlink, image recognition, mobile 2.0, Mobile Advertising, Mobile Apps, Mobile Content, mobile marketing, Mobile Monday, Near Field Communication, NFC, Proximity Marketing, qr code, QR codes, rfid, ubiquitous, ubiquitous marketing, Ultra Wideband, usability, UWB, Viral, wi fi.
I wanted to write this article before summer but workload took me until now to take some time to write some of my insights on this interesting subject, so here we go…
Up to now, most people in the industry used the bluetooth marketing term to name advertising and marketing campaigns made using Bluetooth on mobile phones. Before entering the real ubiquitous marketing era, I think the time is right to start using proximity marketing to define the new era we’re entering to start using more then just bluetooth for mobile marketing campaigns.
Wi-Fi, RFID, Ultra-Wideband (UWB), and Near Field Communication (NFC) will soon be used to send multimedia content to your mobile phone, together with other ubiquitous devices, supposing you want it of course. As of now, the mobile phone is the best positioned device for mobile marketing campaigns for it’s multifunctional use and it’s market penetration.
Let’s start what it’s all about with the definition at Wikipedia:
“Proximity marketing is the localised 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 localised broadcast, or more commonly is specifically targeted to devices known to be in a particular area.”
I would like to introduce you to qr-codes first since I’m sure they will become an inevitable part in the coming months/years of proximity marketing campaigns. Mobile barcode scanning, which is ubiquitous in Japan and Korea using technology, has never been introduced on a big scale outside of these countries. Japanese consumers are used to “clicking” on physical objects by reading special consumer barcodes. In US and Europe those campaigns are ready now to emerge…
For nitwits, using qr-codes with a mobile phone works like this: it works by reading a two-dimensional barcode called a “tag” that contains a URL Internet address. The user “scans” or clicks on the tag using their mobile camera phone running a qr-code reader software. The software decodes the URL automatically and delivers the user to the appropriate content. Metadata can be send additionally to know more about the user’s phone model, location, etc. This is essential to send back the right multimedia content to be displayed correctly to the user’s phone, whatever model he might use.
Most known qr-code companies are Shotcode and Semacode, check also Smartpox, Scanbuy and TagIt but I’m not going to focus on these companies and their products now. What interests me is the fact that big brands start using the available tools around, see also Shotcode’s latest Coca Cola Mexico launches 40 million Sprite bottles campaign.
Some other blogger collegues like Charlie have been writing on the subject, Yasmine who launched her inspiring neo-nomad - my body is a hypertext summer last year, and Kelly who wrote on qr-codes in America. I have been writing or reporting on proximity (bluetooth) marketing campaigns in advertising, politics, music/entertainment and sport.
In theory, it’s all about connecting the web (the platform) with the physical world through devices with the mobile as an obvious choice for users to compare and browse product catalogues, use recommender systems to discover and share opinions with other users. For the ones having browsed the mobile web, qr-codes are a great solution B2C solution to make this happen within the reach of one click + it combines triggering contextually relevant information, correctly displayed for the user with a business model that makes sense for the operators, brand advertisers, technology and service companies in-between…
The twist however to use qr-codes is that they need to be scanned and decoded, thus need a client software to be installed on the mobile. A Swiss company named Kaywa is simplifying the process with a public qr-code generator but also needs a reader to be downloaded to the phone. My guess is that as long as the qr-code client readers don’t get bundled on popular phone series with the big mobile device manufacturers, qr-codes have little chance to go mass-market just yet, retailers will need professional encoders and readers, adapted and compatible with their current systems before they will use it in their stores. Following the discussion on Bluetooth Marketing Revisited from Carlo last week, I agree with him and Tom that most campaigns have really poor usability and user experiences to now but there is some new stuff coming up…
Meanwhile here in Spain, brand advertisers and agencies are looking for new ways to create more compelling proximity marketing campaigns.
One of the tech companies, called Daem Interactive provides image recognition technology to identify the advertisements photographed by users and sends back related multimedia contents. The photographed pictures can be send to an MMS short code to trigger a URL, no decoder needed here - it could actually to send back a qr-code, but I think this is a different and much more fun way for the user to participate and attractive to create innovative marketing campaigns. I have been sceptical about the MMS-use but this seems to be finally solved by the operators now, so this opens a lot of new possibilities and perspectives. Check the picture below:
1. A user takes a picture of an advert and sends it via MMS or e-mail (works for all camera phones!)
2. Datacenter receives the image and the advert is recognized
3. Related multimedia contents are sent back to the user, the user receives the multimedia contents including: applications, ring-tones, video, games, screensavers..etc (example from Daem Interactive)
Another Spanish startup, called Futurlink is taking the challenge to take proximity marketing to it’s next level. FuturLink is a high-tech company oriented to develop and innovate wireless products and applications to interact with mobile phones in the proximity, using short range radio technologies like Bluetooth, Wi-Fi, NFC, RFID or UWB. They developed access points that allow companies and public organizations to interact with the mobile phones of their customers within the company premises, and now also in shopping malls… All that tech in one box, get the picture?
Both companies will be presenting their latest stuff at next Mobile Monday Barcelona. Stay tuned!
(qr-code image above left by Semacode)
Analysis, augmented reality, barcode, Bluetooth, daem interactive, futurlink, image recognition, mobile 2.0, Mobile Advertising, Mobile Apps, Mobile Content, mobile marketing, Mobile Monday, Near Field Communication, NFC, Proximity Marketing, qr code, QR codes, rfid, ubiquitous, ubiquitous marketing, Ultra Wideband, usability, UWB, Viral, wi fi
15 Responses to “Proximity Marketing”
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Hi Rudy,
Thanks for mentioning us:)
May I make some slight corrections and some additions to the above.
* QR Codes
Gavitec, Quickmark
* Datamatrix
Semacode, Smartpox
* Shotcode
Shotcode
The Kaywa Reader (http://reader.kaywa.com) does read both ISO-Standards - QR Codes and Datamatrix (see also http://datamatrix.kaywa.com) .
I also wanted to point you to the feed2mobile:
See this blog mobilized at:
http://feed2mobile.kaywa.com/20218278
Now you can either:
- Scan the QR Code with any “open” QR Code Reader (see video at: http://mobile.kaywa.com/p491)
- Type “20218278″ in your Kaywa Reader
- Send an SMS to 202 with QR 20218278 (only in Switzerland right now)
- Type “http://feed2mobile.kaywa.com/20218278″ by hand
- Type “feed2mobile.kaywa.com” by hand and scroll to the latest mobilized RSS-feeds or search for one.
Best regards
Roger
Hi Rudy,
This is a great post. Interpreting the Wikipedia definition of proximity marketing there are three critical elements to solving this problem…
The web/business has to know where I am. Here you have several choices – area code, zip code, GPS. I’m opting here for GPS – why? Because it places you at an exact place at an exact time. This is critical information to close the feedback mechanism for the marketing folks.
Secondly the web/business has to know what the device terminal capabilities are. No good sending me something if it’s not formatted correctly so I can read it. (Think mobilization not miniaturization).
Finally, and this is the most CRITICAL element of any proximity marketing campaign – it has to be opt-in. The holy grail is to send information that is so targeted and so relevant that the customer is compelled to read it.
To see how proximity marketing could work log on to Google with your mobile phone and do a search for Pizza. You’ll get all kinds of interesting results.
Imagine if you could get this – a phone call from a local pizza hut asking you for your order. That’s the power of proximity marketing. All of a sudden the local Pizza store knows “Who you are, What device your on i.e. your mobile phone number and most importantly Where you are.
All of these capabilities are now within reach of the consumer. (Plug coming up) Our company makes client/server software that delivers on the vision for proximity marketing for the mobile AND desktop customer. Learn more and request a demo at http://www.5o9inc.com
Cheers,
Peter
This was a great blog. My company has been working in proximity marketing recently, specifically “bluecasting” as part of our mobile product mix, and the reception is mixed but mostly favorable. People get the idea, but we have the hurdles to jump through that are seemingly particular to any mobile efforts here in the states. We have been fortunate to line up the right type of client to move forward and we hope to be able to create the type of interactivity you are noting in Spain. Recently my team and I lectured at a university in New York. It was shocking to see the confused look on the faces in the classroom at times, merely by the simple terminology. Just yesterday however I was speaking with a friend’s 13 year old daughter about mobile games. It was amazing listening to her throw out terms like “handset”, “wap” and “carrier specific”, etc. Once the barriers come down, that age group is ready for a mobile interactive experience.
Hi Rudy,
glad to talk to you today in Paris. I find indeed the Daem Interactive approach and technology interesting mainly for the following two reasons:
1) it does not require a client application to be downloaded or embedded on the handset. Thus leveraging on the existing camera phone handset base.
2) i find quite powerful the fact that contact is kept with the Brand an its related advertising message throughout the whole process of shooting and visualizing the ad on the handset screen before to be sent to the server by MMS versus the handling of a “cold” code.
The challenge will rather stem from the side communication required and user experience to be developed in order to get the people aware about the fact the ad of this magazine/outdoor billboard or even TV or PC screen is actually “Daemable”. Therefore a whole ecosystem of partners has to be engaged. A code would probably be more self explainatory in terms of expected process but would not have the above mentioned advantages.
I had the opportunity to develop and launch a European premiere for Orange last March 2006 in France, in partnership with the start-up Kameleon (http://www.kameleon-media.com/EN/index.htm) and SonyBMG, when creating “Interactive Windows” in 8 Orange flagship stores. We had the new single of a French singer + a link to a dedicatede content wap-site downloadable by Bluetooth 24h a day through our “interactive windows”: http://www.francetelecom.com/fr/espaces/journalistes/communiques/CP_old/cp060316-2.html
As you, i am convinced this is just the beginning of a new marketing era that i would even call “Participative Marketing” when adding the extra dimension of User Generated Content to this “level 1″ Interactivity dimension and bridging Online and Outdoor advertising.
Best regards,
Martin
ORANGE/France Telecom
Global Director Business Development & Partnerships with Start-Ups & VCs
martin.duval@orange-ftgroup.com
Hello,
I’m kind of surprised in all of these blogs Mobot is never mentioned. Mobot is one of the pioneers in image recognition technology with a large number of campaigns under their belt with some of the biggest publishing companies in the States along with major brands. Mobot requires no barcodes, 2D codes or special software to recognize images. Here in Spain, we’re using short codes to receive MMS, while in the rest of the world it’s still working with emails.
We’re partners of Mobot here, and are currently working on some very interesting projects incorporating Mobot technology.
We were also the first company here in Spain to offer proximity marketing technology, 3 years ago now, in that case using infrared technololgy. Obviously Bluetooth is now king. We did the first interactive billboard using bluetooth for Nike in Barcelona along with a whole host of projects for Absolut Vodka, Sony Pictures, Ford and Opel.
Just to let you know
Keep the interesting news coming!
At ProxiBlaster.com we have done extensive testing and found that most bluetooth advertising campaigns fail due to shotgun approach bluetooth advertising . The shotgun approach is simply sending ads out to un-expectant clients , the take rate from this is very low .
Any bluetooth advertising campaign should be coupled with a visual signage of some type to let the client know that some sort of bluetooth advertisement should be expected .
Downloading of programs to run and then get further content simply confuses users here in the USA . We opt for simple animated gif or vcard types of bluetooth advertising campaigns to insure we can successfully approach as many phones as possible . We couple the bluetooth ad campaign with visual signage as well to boost the take rate .
learn more at our website http://proxiblaster.com
Dan Hurd
Sales & Marketing
ProxiBlaster.com USA
our Bluetooth Advertising product Best & cool business idea!
http://www.eblueads.com/
Bluetooth Marketing is here in the U.S. and we have wired Las Vegas on a single network which will eable users to optin into the network otherwise not be bothered by un solicited messages. http://www.bluetoothon.com
A large part of the problem many people don’t understand what bluetooth actually is and how it works, so I thought I might let everyone know by writting this blog.
Bluetooth technology is how mobile phones, computers, and personal digital assistants (PDAs), not to mention a broad selection of other devices, can be easily interconnected using a short-range wireless connection. Using this technology, users can have all mobile and fixed computer devices be totally coordinated.
Bluetooth wireless technology is a short-range communications technology intended to replace the cables connecting portable and/or fixed devices while maintaining high levels of security.
The key features of Bluetooth technology are robustness, low power, and low cost. The Bluetooth specification defines a uniform structure for a wide range of devices to connect and communicate with each other.
Bluetooth technology has achieved global acceptance such that any Bluetooth enabled device, almost everywhere in the world, can connect to other Bluetooth enabled devices in proximity. Bluetooth enabled electronic devices connect and communicate wirelessly through short-range, ad hoc networks known as piconets. Each device can simultaneously communicate with up to seven other devices within a single piconet. Each device can also belong to several piconets simultaneously. Piconets are established dynamically and automatically as Bluetooth enabled devices enter and leave radio proximity