Many researchers believe digital technologies will influence a large portion of 1.1 Trillion dollar of in-store retail sales. Beacons are one of the major technologies in this equation.
The introduction of beacons by Apple and Qualcomm in the later half of 2013 brought momentum in proximity marketing. Currently there are 60+ proximity marketing companies in U.S., many of which are using beacons or have tested Beacons.
In 2015 how far the players have been able to move the needle in proximity marketing?
- Active Beacons in U.S.- Around 35,000+
- Around one in five marketers used Beacons for marketing
- Beacon adoption among retailers – Around 3%
- Retail sales influenced by beacons – USD 1.3 billion plus
- Marketing spending through Beacons as a % of U.S. marketing spending – 0.07%
Proximity platforms have the ability to transform digital out-of-home, or even traditional billboard marketing. Proximity marketing can be done at bus stops, sporting arenas and events are all areas where beacons or even near field communication chips could create multichannel campaigns. Few companies like Shopkick, Estimote, Scanbuy, Thinaire, Swirl Network, Nomi, Sonic Notify, Roximity, Inmarket, Proxama and Blue Bite are already working with retailers and brands to increase the effectiveness of proximity marketing. Many of these companies are providing Analytics as an add-on feature which helps in measuring advertising and promotion effectiveness and better understands the customer journey. With an analytics engine, marketing insights with rich and actionable intelligence can be delivered such as in-location traffic, app downloads, tap-ins, hot area and paths to purchase.
Apart from specialized players, even retailers and retail software companies will build their systems further. Although more companies are jumping into the arena, there are only few companies who are trying to address the customer pain points. Therefore the challenge remains.