Digital Proximity Marketing: Short-Range Wireless Technologies Potential

Although digital proximity marketing is still in the beginning stage of development, it is spreading across Europe, with the UK leading the way. Currently there are more than 35 providers throughout Europe who have helped to showcase these new technologies in the marketing realm. Perhaps the most impressive utility of digital proximity marketing is the ability to inform consumers about their interests in a specific time and space. This strategic positioning makes this new form of marketing exciting and a hot topic today.

"The broad diffusion of short-range wireless technologies embedded in mobile phones has enabled interaction between mobile users and the surrounding environments. Systems of sensors can detect mobile phones in the short distance and send them information and data that could be useful to the final users," says Saverio Romeo, Frost & Sullivan Industry Analyst. "Digital proximity marketing uses this idea to enable digital marketing and advertising campaigns in places where the actual users are. When a consumer's position is close to the digital proximity marketing system, it is possible to provide content that the consumers want to receive and is related to brands and events close to the location of the consumers".

Digital proximity marketing transports information using the internet from a content management system which manages all the marketing and advertising campaign, to a content server which stores everything. Then through cellular networks, the information is delivered to access points, which are connected to the end users' mobile phones through short-range wireless technologies, mainly Bluetooth, but also Infrared, Wi-Fi, GPS, cell towers and RFID. The system is based on an opt-in model and so users receive information only if they want.

This technology creates a wide variety of opportunities for branding and advertising. Companies are finding marketing potential at exhibitions where people pursue a specific interest. Being able to target the exhibition and generate information the consumer would be interested in directly to their mobile phone, is a brilliant way to market directly to target audiences. Concerts and festivals, as seen in the O2 Centre in London, are places where consumers can get information about artists and even download music. Museums and art galleries offer the opportunity to channel specific interactive forms of learning directly to those attending. Even bars and clubs offer a place to run a food and beverage (F&B) campaign. Malls and airports can install access points at their entrance to interact with travellers and shoppers directly. Certainly places of public transportation such as taxis and undergrounds are ideal locations for people who are waiting in transit to receive interactive marketing campaigns. The possibilities do not end here.

"The forms of interactions between users and the marketing campaigns are diverse: from simple messaging to audio clips through to short videos, e-vouchers, animations, java applications and ring-tones," adds Romeo.

Already there are several companies who are succeeding in running campaigns for major brands at international events. Hypertag, Waymedia, and Bloozone are only three European digital proximity marketing companies who have been successful in this market. Hypertag, a UK-based company, has run campaigns worldwide for well known brands such as Ford and O2. Waymedia is an Italian digital proximity marketing provider that has run campaigns for MTV Italia. Bloozone, a German company, has run campaigns for Coca Cola, SAP, Chevrolet and Seat. The number of similar providers has grown significantly over the last two years.

Despite digital marketing proximity being in an initial stage of development, Europe seems to be embracing it with confidence. Particularly, the ability to inform consumers about their interest in a specific time and space gives digital marketing proximity almost a unique place in the world of marketing campaigns.

Posted to the site on 9th March 2009