Proximity marketing, the wireless, paperless answer to electronic marketing that utilises ambient intelligent technology, sending special offers, product information, event news, travel updates, etc to Bluetooth, GPS and Wi-Fi enabled mobile devices.  With an estimated 25 million Bluetooth enabled phones in the U.K, over a billion worldwide, it has proved successful in its early stages but has been surprisingly overlooked in comparison to the increasingly popular mobile marketing.

However, proximity marketing has the potential to be more powerful than mobile marketing, as it is delivered at a time and a place that makes it relevant and therefore extremely enticing.  Developments in technology have seen it focus increasingly on using Wi-Fi for an accurate location reading, meaning as you pass a particular shop, bar or restaurant, for example, coupons will be sent to your phone.  Digital proximity marketing is a non-intrusive alternative, minimising spam, as the receiver has the choice to accept or dismiss the coupon, which can then be downloaded and stored onto the user’s phone and eventually presented at the point of sale.

Blu-Pons are one of the latest innovations from QderoPateo, designed to drive profitability for businesses by delivering promotions, coupons and loyalty programmes and enhance the shopping experience for the consumer.  It also folds neatly into web marketing as once the customer is enticed into the store the business is able to establish other means of digital contact.

The initiative to obtain loyalty is also made available by proximity marketing itself.  Later this year, QderoPateo will be pioneering their latest growth plan for the project, the “Blu-Bucks” scheme, which creates redeemable vouchers for existing customers. Those collecting Blu-Pons will have the ability to redeem “Blu-Bucks” at participating retailers when the initiative launches later this year.  This is a great retention tool to encourage returning customers, leaving them wanting more, along with further increasing the personal relevance of the Blu-Pons marketing scheme for it’s users.

Industries to which proximity marketing will appeal are mainly retail and leisure based, shops, bars, clubs, restaurants, sports events, cinemas, concerts and theatres; but they are also likely to prove effective in universities and colleges or at business exhibitions and events for example.  With many different broadcasters becoming available, the use of such a technology is set to spiral.  From the tiny mobile Ad-pod to simple dongles from companies such as Merlin that are able to reach a range of around 200m, the technology is becoming far more accessible.

Proximity marketing has proved to be successful when targeted en-mass.  Waymedia recently launched a campaign in Milan’s San Siro Stadium when the Italy played New Zealand All Blacks in front of an 80,000 strong crowd.  Coupons were sent out in collaboration with Peroni and fans received the All Blacks anthem which they could play and share with one click, making it a memorable event.

Major events such as festivals are also a likely target for proximity campaigns and with the release of related technology pioneered by Twitter founder Jack Dorsey, proximity marketing will be able to thrive.  Dorsey has developed a genius yet simple app called Squareup, which allows you to receive payment via the Iphone, Ipod Touch and Ipad.  The app is accompanied by a card reader that plugs into the bottom of your device.  The small, square shaped gadget has a slot on the bottom, allowing you to swipe the card and then digitally sign for it, with the option of receiving your receipt via email.

Payment solutions company Verifone have also developed a competitor to Squareup.  Aimed towards a more business-based clientele, it is compatible only with merchant bank accounts and the plug in is somewhat larger, yet easier and more efficient to swipe.  Your Iphone slots in via the pin hole at the bottom and sits inside the gadget, providing a large slot down the side in which to swipe the card, the length of the Iphone, mimicking the format of a chip and pin device.  While it is no doubt a notable competitor for Dorsey’s Squareup app, it’s size and nature limits the market as aforementioned, whereas the key to Squareup is the simplicity – it’s free, accessible and easy for anyone to use.

One of the most attractive prospects of these technologies is just how cost effective they could prove to be.  With apps such as Squareup free of charge and just a one off payment needed for Bluetooth broadcasting devices to transmit proximity campaign messages, it appears to be an inexpensive solution that could be of particular benefit to smaller businesses, who do not have large advertising budgets, enabling them to save on print, advertising fees, etc, along with creating the initiative to compete with larger competitors within their proximity.  However it is the vast array of commercial uses and the simplicity of this eco-friendly wireless, paperless technology and accompanying products that could soon see proximity campaigns established as a dominant force in digital marketing.

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