Proximity marketing has become a highly effective medium by which sellers can connect with buyers via mobile devices such as Smartphones and other PDAs. They do so by sending free messages or other content to people’s cell phones when those people are in close proximity to a point of purchase. Unlike traditional SMS messages which are restricted to text only, Proximity marketing uses Bluetooth as the communication medium. The messages can be text, a static graphic or full motion videos accompanied by audio, ring tones, bar codes and much more. The message might say, for example “show the coupon on your phone and get $5.00 off your favourite DVD or CD at HMV today. Alternatively, it could be a branding message within a geographic environment containing relevant consumer information e.g. “Read the Financial Post today for the latest in business news”. And unlike SMS where a cost is incurred every time you text, Bluetooth is absolutely free.
If we examine some of the most obvious and practical scenarios for Proximity Marketing, shopping malls probably show up at the top of the list. Shopping malls are ideally suited for a permissive based mobile marketing solution using Bluetooth. For starters, the malls feature the right demographics. A recent Decima Report shows that the 18-34 year old age bracket represents the primary target market for mobile marketing. They are techno savvy and familiar with the use of Bluetooth.They represent the largest segment of the population carrying Smartphones and PDAs and have a significant discretionary income. A majority of young families fall within this age group and therefore venues such as shopping malls are an ideal fit. Given their familiarity with mobile technology, they are the mostly likely to respond to mobile marketing initiatives.
Shopping malls present multiple opportunities to engage an audience that is already predisposed to purchasing, typically has disposable income, and will readily take advantage of special promotions including coupons. In effect, proximity marketing represents the “last mile” in drawing them from the mall into the individual stores. Shopping malls represent multiple sales & revenue opportunities under one roof ranging from the many retail outlets to the various food courts within the mall. Finally, shoppers in malls are generally moving at a leisure pace and, as such, are more inclined to see and absorb the signage and accompanying “call to action” which prompts them to turn on their Bluetooth devices to receive special offers.
Bluetooth devices are quickly becoming ubiquitous. According to IMS Research, over 60% of North American mobile devices are now equipped with Bluetooth technology. And with the recent legislation now making it illegal to use a mobile phone in your car without a handsfree Bluetooth headset, it’s a safe bet that not only will more and more mobile phones come equipped with Bluetooth but that in most cases, Bluetooth will already be activated and ready to receive special offers the moment they enter the Mall.
