Proximity marketing is the localized wireless distribution of advertising content associated with a

particular place. Transmissions can be received by individuals in that location who wish to receive them
and have the necessary equipment to do so.

Distribution may be via a traditional localized broadcast, or more commonly is specifically targeted to
devices known to be in a particular area.

The location of a device may be determined by:

 A cellular phone being in a particular cell

 A Bluetooth or WiFi device being within range of a transmitter.
 An Internet enabled device with GPS enabling it to request localized content from Internet
servers.

Communications may be further targeted to specific groups within a given location, for example content in
tourist hot spots may only be distributed to devices registered outside the local area.

Communications may be both time and place specific, e.g. content at a conference venue may depend on
the event in progress.

Uses of proximity marketing include distribution of media at concerts, information (weblinks on local
facilities), gaming and social applications, and advertising.

Bluetooth-based systems

Bluetooth, a short-range wireless system supported by many mobile devices, is one transmission medium
used for proximity marketing. The process of Bluetooth based proximity marketing involves setting up
Bluetooth "broadcasting" equipment at a particular location and then sending information which can be
text, images, audio or video to Bluetooth enabled devices within range of the broadcast server. Other
standard data exchange formats such as Vcard can also be used.

It used to be the case that due to security fears, or a desire to save battery life, many users keep their
Bluetooth devices in OFF mode, or ON but not set to be 'discoverable'. Because of this, often regions
where Bluetooth proximity marketing is in operation it is accompanied by advising via traditional media -
such as posters, television screens or field marketing teams - suggesting people make their Bluetooth
handsets 'discoverable' in order to receive free content - this is often referred to as a "Call-to-Action." A
'discoverable' Bluetooth device within range of the server is automatically sent a message asking if the
user would like to receive the free content.

Current mobile phones usually have bluetooth switched ON by default and a majority of users now leave
bluetooth switched on for easy connection with car kits and headsets.

Some implementations of Bluetooth proximity marketing require users to run Java applications on their
phones to enable them to receive content. This has the advantage that only those who choose to will
receive content. Others require no handset-side software.
The diversity of mobile phones is huge. Screen sizes and supported file formats varies greatly. To obtain
the optimal user experience with Bluetooth Marketing, the Bluetooth system must be able to automatically
recognize phone models and deliver the proper content automatically.

Frequently Asked Questions

Bluetooth Marketing is an effective channel through which to engage with consumers via the mobile
device by offering premium mobile content associated with your brand. There are a number of different
environments where Bluetooth can be used to encourage brand participation including out of home
advertising sites, exhibitions and events, and retail environments.
 
What is Bluetooth?
Bluetooth is short range wireless communication standard which uses radio frequency to enable the
transmission of messages to Bluetooth enabled devices such as mobile phones, PDAs, PCs, within a
specific range. It provides a wireless platform for devices to connect and exchange information, over a
secure, globally unlicensed short range radio frequency.
 
What are the mechanics of a Bluetooth marketing campaign?
Bluetooth is a channel enabling brands to deliver premium content to consumers’ mobile phones from
Bluetooth download zones such as outdoor poster sites, exhibition stands, or interactive point of sale
displays in retail environments. At the download zone, our Bluetooth Touchpoints constantly search for
Bluetooth enabled devices within a specific range. Once the Touchpoint finds a device, it offers a
message; ‘Accept message via Bluetooth from x’. The consumer has the option to accept or reject the
message. Once the consumer accepts the message, the content is automatically downloaded to their
mobile phone for free.
 
How far can Bluetooth content be transmitted?
Our Bluetooth Touchpoints use the highest possible power levels and will transmit data up to 100m
(Bluetooth Class 1). Mobile phones however, have weaker transmitters (Bluetooth Class 2) and will only
start to come into range from about 10-20m.
 
How can some Bluetooth companies quote ranges of 100m?
Bluetooth is a two way communication - the mobile device has to be within reach of the transmitter before
content can be offered. It is not possible for a 10m (Bluetooth Class 2) mobile phone to communicate with
another Bluetooth device 100m away.
 
How do I maximise the effectiveness of my Bluetooth campaign?
There are three important factors to consider when implementing a Bluetooth marketing campaign –
content, signage and location. 
 
Content – Bluetooth is an excellent channel to enable you to deliver premium content such as
wallpapers, videos, mp3s etc associated with your brand to a consumer’s handset. However it is crucial
to ensure the content you are offering will resonate and appeal to the target audience.  Always put
yourself in the consumer’s shoes to ensure the content you are offering is relevant and appealing to your
target demographic.
 
Signage - For a Bluetooth campaign to be successful, it is essential to have prominent creative or
signage prompting consumers to activate Bluetooth. The majority of new phones now have Bluetooth
capability however, some consumers have their Bluetooth functionality either turned off or set to
‘invisible’. In addition, not all handsets give off an audible or vibration alert when receiving a message via
Bluetooth, hence the consumer is unlikely to be aware of your offer unless there is signage alerting them
to it. Signage will ensure consumers are aware they are in a Bluetooth download zone regardless of
whether they have their Bluetooth enabled or disabled.
 
Location - It is important to select a location with ‘dwell time’ such as an exhibition stand, railway
platform, food court to ensure consumers have time to receive content from the Bluetooth
Touchpoint. Alternatively, strategically positioned download zones can create dwell time assuming
prominent signage is displayed. Bluetooth marketing is not about bombarding consumers with advertising
messages as they walk past a particular area, it is about engaging consumers through appropriate
signage and giving them a compelling reason to stop and interact with your brand.
 
What type of content can I send via Bluetooth?
Anything from text and image based files such as jpegs and gifs, video clips, mp3s, through to
sophisticated java applications such as games, mobile brochures and event guides. All phones have
different screen sizes and capabilities – our Bluetooth Touchpoints use handset recognition to optimise
the size and type of content to the user’s handset capability.
 
How many mobile phones have Bluetooth capability and how many of those have Bluetooth activated?
Of the 19 million mobile phones in the Australian market, it is estimated that approximately 75% of these
have Bluetooth functionality, and approximately 95% of new phones released to the market have
Bluetooth capability.
 
There is no specific data available on how many people have Bluetooth permanently activated. This is
why it is important to have some form of creative or signage which provides a compelling reason for
consumers to activate Bluetooth and engage with the campaign. Breeze Tech has collected data on the
number of Bluetooth devices discovered in certain environments and would be happy to provide you with
the data for specific locations if required. As an example, a typical shopping centre foodcourt campaign
would find approximately 17,000 unique Bluetooth devices over a 4 week period.
 
How much does the consumer pay to receive the content via Bluetooth?
The customer does not pay anything – it is free to receive and send information via Bluetooth.
 
Does Bluetooth comply with Spam and Privacy Laws?
Yes, Bluetooth proximity marketing is an “opt-in” service and is exempt from the Spam Act. Bluetooth
broadcasting is very similar to other broadcasting technologies. If you activate the FM radio on your
phone you receive FM radio broadcasts - in the same way if you activate Bluetooth on your phone you
can receive Bluetooth broadcasts. Unlike SMS, messages are not sent to a personal address and
therefore no personal information is collected.
 
Furthermore the consumer must also accept the content before it is downloaded to the phone, if a user
declines the content they will not be offered that content again.
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