Beacon Ad

What is a Beacon Ad?

When placed in a store, beacons use Bluetooth technology to detect nearby smartphones and send them media such as ads, coupons or supplementary product information. They can also be used as point-of-sale systems and to collect information on those consumers — particularly how consumers maneuver through stores.

Beacon devices

Beacons are small devices that send Bluetooth Low Energy signals (BLE)  to smartphones and tablets nearby. Once emitted, these one way radio waves reach the phones in the vicinity of the Beacon device and interact with the mobile applications installed on those phones. That means that when the signal from a Beacon reaches a phone, it triggers specific actions, like location-based notifications, in that phone’s mobile apps. Beacons don’t send notifications themselves. What they really do is send a piece of geographic information, a unique identifier, to the mobile applications within their range (about 50 metres).

The unique identifier, which is different for every beacon, contains three types of data: information about the beacon vendor; information about a certain location, such as a store location; information about a specific subregion within a store, such as a store department. To be able to receive the signal from a beacon, a mobile app needs to be previously enabled to communicate with it. That means the unique identifier of a specific beacon has to be included in that mobile application code.

Moreover, the interaction between a mobile phone and a beacon device is not automatic. It requires users to enable the Bluetooth device on their phones and to opt in to receive signals from Beacons for a specific mobile application.

Finally, iOS and Android platforms interact with Beacons in a different way. The reason behind this is that Apple implemented an iBeacon protocol which enables iPhones and iPads (running the latest version of iOS7) to constantly scan for Beacon devices in their proximity. When a beacon is detected, it can automatically ‘talk’ to the mobile applications installed on those Apple devices, even if those apps are closed and not running. Due to the iBeacon protocol, we refer to such Beacons as iBeacons. On the other hand, Android platforms don’t have such a protocol, so Android apps need to be running on the phone, at least in the background, to receive signals from Beacon devices in their proximity.

Beacons can emit BLE signals for up to 5 years and have very little cost (a few dollars each).

Proximity marketing: the use of Beacon Ad technology to provide a location based experience

As highlighted by this article, ‘total BLE Beacon shipments will comfortably exceed 400 million units in 2020’. The reason behind this impressive growth trend is that a wide range of new marketing opportunities are now accessible, and very promising, thanks to Beacons. Retailers are more and more keen to use these devices in their marketing strategies to make sure their customers receive a deeply personalized and time relevant user experience. Proximity marketing, based on the use of Beacon devices, is the future of mobile marketing. Let’s have a look at the main Beacon-based opportunities for retailers.

Beacon Ad Campaigns

Beacons can trigger location-based notifications in specific apps on customers phones. These notifications might inform customers, in a personalized way, about special promotions, discounts or new products available within the store where the beacons are placed. Location-based notifications can be used to invite customers to enter a nearby store, or to welcome them when they enter the store, or to greet them when they leave by providing a discount or a special treat to encourage them to come back. All these strategies are very powerful tactics to drive foot traffic to retail stores and increase their conversion rates and sales volume. Also, this use of Beacons can help retailers attract users to their apps, retain those users, and increase engagement on those apps.

Data collection

By interacting with the mobile applications installed on smartphones and tablets within their range, Beacons can help retailers track users behaviours and collect relevant data about users preferences and actions. This data is a powerful source of information for retailers because