Proximity Marketing News (11/19/2015)
Welcome to your weekly proximity marketing news digest where we bring you some of the most intriguing stories from the emerging world of location-based technologies.
Beacon Benefits Need Explaining
Bluetooth beacons in airports and on aircraft are slowly starting to become a more mainstream concept, with several airports already implementing the technology. But there are still issues to overcome on the path to them becoming widespread — and at their most useful.
At the recent APEX Expo in Portland, SITA OnAir staffers Aurélie Branchereau-Giles and François Rodriguez demonstrated the current thinking around beacon technology on board the aircraft to Runway Girl Network, and the company’s technology worked seamlessly. That’s certainly a useful first step along the path.
But the problem with it — and with much of the passenger experience-related beacon technology that’s being suggested — is that the #PaxEx benefits haven’t been enumerated sufficiently to overcome the instinctive passenger recoil at the idea of mobile phones tracking them, and the very reasonable concerns about data security that people hold.
Do passengers really want to give location data to airports?
Beacons Go Mainstream Ahead of the Holidays
Beacons are coming out of the testing phase and entering the mainstream just in time for the holiday shopping season. The proximity-based marketing devices are rising in popularity as more consumers use mobile shopping apps. Usage of shopping apps on tablets and smartphones increased 174% in 2014 — more than any other app category, according to app analytics company Flurry. And merchant adoption in such a critical time of the year for retail shows how useful the devices are proving themselves to be.
Elle’s Beacon Breakthrough
A hundred years ago, Hearst’s broadsheets and Pulitzer’s newspapers dominated not only how average Americans got their news, but also how advertisers reached their audiences. Fast forward to 2015 and pundits are heralding the long, slow death of print media at the hands of high-tech platforms, but what if the two could coexist for even greater functionality and consumer penetration?
That’s the goal of a new partnership between Elle magazine and two popular retail companion apps — ShopAdvisor and RetailMeNot — and beacon tech provider Swirl. In an interview with Digiday, Kevin O’Malley, senior vice president and publisher at Elle, explained that his magazine started looking into ways to enhance the advertising capabilities of their publications after retailers hounded him with complaints about how online-centric their ads appeared to be.
“The single, most universal request I hear from every advertiser, whether it’s luxury, beauty or fast fashion, is, ‘Help us drive retail store traffic,’” O’Malley said. “Everyone wants more people in stores — and that’s not necessarily new — but right now, retailers are seeing a fall off more than ever.”
Real-World Places Are Dynamic, Geofences Should Be, Too
In the world of mobile marketing, geofencing has become the lingua franca for agency buyers, retailers, techies and data analysts.
Everyone understands the idea of putting a “magical” virtual polygon around a place that sends stuff to consumers’ phones based on where they have been, where they are, when they are there and the things in which they have anonymously expressed interest.
However, all geofences are not created equal. Using a static geofence diminishes the very power of using location data in a mobile marketing campaign.
Think about a busy place you know, such as the downtown area of a major metropolitan city. Is it the same “place” at 2 p.m. on a Tuesday as at 10 p.m. on a Saturday? The buildings are the same, but that may pretty much be it.
NFC Is a Bigger than EMV
EMV is far from being a new technology. In fact, European countries have been using EMV chip-enabled credit cards and processing terminals for nearly 30 years.
Despite all the noise around the recent liability shift deadline for merchants to become EMV compliant, this payment technology could soon become a thing of the past, especially as it faces consumers’ increasing adoption of new payment technologies such as Near Field Communication (NFC)-enabled devices and mobile payments.
While focusing on EMV compliance solves a short term need for businesses across the country, here are three reasons merchants should now turn their attention beyond EMV to mobile payment processing:
Mobile Pay Preference is Outpacing EMV. The slow adoption of EMV technology by merchants and card suppliers has helped shift consumer preference toward the use of mobile payments.