Proximity marketing is one of the most important applications of BLE beacon technology. According the ProxReport in 2017, “75% of US retailers have integrated beacon technology into their marketing strategies and seen a 9% increase in profits and 175% ROI. And the proximity marketing market is expected to be worth USD 52.46 Billion by 2022, at a CAGR of 29.8% between 2016 and 2022.”
According to Persistence Market Research, in 2024, the global proximity marketing is expected to reach $63.7 billion, growing at a CAGR of 21.4%. And it will be projected to reach $365 billion by 2033.
What is Proximity Marketing?
Proximity marketing broadly refers to the location-based distribution of advertisement. Marketers used to giving out leaflets, sending e-mails indiscriminately or hiring a sign spinner to drive sales and now distribution may be via a traditional localized broadcast, or more commonly is specifically targeted to devices known to be in a particular area. The applications include concerts, information, competitions, social apps, check-ins, checkouts, and local advertising.
However, in the situation of World Wide Web, consumers are getting to know about marketing tactics and have evolved to avoid spam. They are more concerned about privacy and expect more personalized recommendations.
Why Proximity Marketing is Important?
According to marketresearchfuture.com , the proximity marketing market was valued at USD 65.2 billion in 2022 and is expected to expand from USD 87.4 billion in 2023 to USD 360.5 billion by 2030, with a compound annual growth rate (CAGR) of 22.44% over the forecast period (2023 – 2030). Key growth drivers include the rising adoption of smartphones, advancements in location-based technology, the integration of big data and analytics, enhanced targeting and personalization capabilities, and cost-effectiveness.
Also, the statistics on statista.com shown: there will be over 7.4 billion smart phone users around the world. Therefore, in terms of market size and user base, proximity marketing is a marketing approach with strong potential, capable of bringing more market opportunities.
Types of Proximity Marketing
Bluetooth Proximity Marketing
This method uses Bluetooth Low Energy (BLE) technology, also known as Bluetooth beacons, to communicate with nearby devices. It allows businesses to send targeted offers, notifications, or information to customers’ smartphones when they are within a specific range, typically a few meters. It’s ideal for indoor environments like retail stores, airports, and event venues.
WiFi Proximity Marketing
WiFi proximity marketing utilizes WiFi networks to detect and engage users who connect to the network within a specific range. Businesses can track customer movement patterns and send targeted ads, promotions, or information through apps or the WiFi network itself. This method is effective for large areas like shopping malls, hotels, or airports.
RFID/NFC Proximity Marketing
Radio Frequency Identification (RFID) and Near Field Communication (NFC) technologies are used for contactless communication between a device (like a smartphone or RFID tag) and an RFID reader or NFC-enabled object. These technologies are often used in loyalty programs, access control, and providing personalized offers by detecting the customer’s proximity to a particular item or location.
GPS-Based Proximity Marketing
GPS-based proximity marketing uses the Global Positioning System (GPS) to track a user’s location. When a user enters a predefined location or geofence, the system can trigger location-specific messages or offers. This method is most effective for outdoor environments, such as offering discounts when customers approach a store or a specific area in a city.
IP Address Proximity Marketing
This type of proximity marketing uses the IP address of a user’s device to estimate their location. It’s typically used in online marketing to target users based on their geographic location. Businesses can deliver personalized content, ads, or offers based on the user’s regional information, which is less precise than other proximity methods but still effective for broader targeting.
QR Codes
Quick Response (QR) codes are scannable codes that users can scan with their smartphones to access information, discounts, or special offers. These codes can be placed in physical locations like posters, store windows, or products, making them an easy way to engage customers in proximity. QR codes don’t rely on Bluetooth or WiFi but rather on the user’s action of scanning the code with their phone.
Which is The Best Type of Proximity Marketing?
Beacon proximity marketing uses Bluetooth connections and does not require users to have a mobile internet connection like 4G, making it deployable in areas with low signal reception. It has low battery consumption requirements, although users do need to enable Bluetooth. Additionally, Beacon devices are physical entities that need to be installed.
Beacons help marketers gather detailed customer information, such as the average time a customer spends in a store and which product areas they visit. This data provides marketers with essential insights to create more targeted customer ads through mobile applications and to optimize the in-store experience.
What Are the Advantages of Proximity Beacon Marketing?
Effective
With the data collected, businesses can refine and focus their marketing strategies, resulting in higher conversion rates and a better return on investment. Targeted, location-based offers often result in higher engagement and purchase rates compared to general advertising.
Easy and Cheap
Beacon technology is relatively affordable and can cover large areas with just a few devices. The low maintenance costs and simple infrastructure make it an efficient solution for small businesses and large venues alike.
Precise Targeting and Personalization
Beacons enable highly localized and personalized marketing by reaching users within a specific range. This allows businesses to tailor promotions, notifications, or content to a customer’s exact location, like specific aisles in a store, enhancing relevance and engagement.
Resource for Insightful Data
Beacons collect detailed data on customer behavior, such as time spent in-store, frequently visited sections, and purchase patterns. This data gives marketers valuable insights for creating tailored campaigns, refining store layouts, and enhancing customer experience.
No Internet Connection Required
Beacons operate over Bluetooth, eliminating the need for mobile data or Wi-Fi connections. This enables seamless interactions in areas with weak signal strength, such as underground stations or large event venues.
Enhanced Customer Experience
Beacons can enrich the shopping experience by offering relevant, real-time information and assistance, such as navigation within a store, information about specific products, or access to exclusive discounts. This increases customer satisfaction and loyalty.
Applications of Proximity Marketing
The usages of proximity marketing is quiet similar to the applications of beacon technology. Just functionally, proximity marketing has a targeted function: that is marketing. The applications of beacon include many aspects.
Retail
Proximity marketing in retail allows businesses to send personalized offers, promotions, and product recommendations to customers when they are nearby. Using technologies like Bluetooth beacons, retailers can engage customers within stores by offering location-based discounts, guiding them to specific products, or sending alerts about sales or new arrivals. It enhances the in-store shopping experience and helps drive sales.
Education
In educational settings, proximity marketing can be used to improve campus experiences. Universities and schools can send real-time updates, event notifications, or campus map guides to students and visitors when they are near a specific building or event. It can also help in attendance tracking and providing personalized learning content based on the student’s location within the campus.
Healthcare
In healthcare, proximity marketing can enhance patient experiences by sending notifications for appointment reminders, health tips, or offering directions within hospitals. Beacons can also help hospitals track the movement of medical equipment or staff, improving operational efficiency. Additionally, it can send personalized health-related offers or reminders to patients when they enter a pharmacy or healthcare facility.
Transportation
Proximity marketing in transportation can be used to enhance the travel experience. Airports, train stations, and bus terminals can send location-based notifications, such as gate changes, delays, or nearby amenities like lounges and restaurants. It can also help guide travelers to the right platforms or terminals and promote offers related to travel services, food, or shopping.
Museum
In museums, proximity marketing can provide an interactive and personalized experience for visitors. Beacons can deliver audio guides, additional information about exhibits, or location-based alerts when visitors approach a particular piece of art or artifact. It can enhance learning by offering rich, contextual information and enable a more immersive, engaging visit to cultural spaces.
Minew’s Beacon Boost Your Proximity Marketing
As an experienced Bluetooth device solution provider, Minew strongly recommends businesses to introduce beacon technology as an powerful and effective addition of an existing Wi-Fi marketing. The long battery life and customized function development of the beacons makes them so cost-effective and capable for different scenario.
MBM02 Proximity Navigation Beacon is one of your best choices for indoor navigation, push notification, and location tracking solutions. As we all knows, most people in the city use smart devices to get directions for shopping malls, gyms or restaurants etc.. This is where location-based services and proximity marketing took off. With more businesses offering Wi-Fi in their stores, it is naturally happened that this technology has become a highly embraced channel for proximity marketing. By the way, WiFi and beacons can work in conjunction to provide better services, even prompting users to turn on their Bluetooth.
Conclusion
Besides proximity marketing, Beacon technology is also capable to use in fields like health-care, logistics, security, home-use appliances and so on. By 2019, beacons are expected to reach 60 million customers, and more than 400 million beacons are to deployed by 2020. Are you ready to experience the power of BLE beacon technology or are you already in it? What do you think of it? Welcome to share your opinions with us.
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