THE NEAR AND FAR OF PROXIMITY MARKETING: THE FUTURE OF MARKETING EXISTS AT THE NEXUS OF DIGITAL SIGNAGE AND MOBILITY
Alex Romanov INTRODUCTION When historians look back on this commercial and cultural period, they will likely describe it as a time when the barriers between the physical and digital experience began to erode. One of the hallmarks of this period will be the blurring of the lines between marketing channels, and the convergence and evolution into something new. Today, location awareness and mobility have added context to even the most ordinary actions, while social media and the ...view middle of the document...
Proximity marketing, on the other hand, is predicated on the fact that the demographic is already optimized. The messaging associated with this technology is delivered to consumers in a specific and ideal location (as near as possible to the point of sale; inside a retail outlet, for instance), and consequently these consumers are in the ideal physical location and mindset to complete a transaction. This, for marketers, is the perfect audience – consumers who are primed and ready to receive messages, and to act on them. PROFITS BY PROXIMITY Cultivating this perfect audience, a feat only possible with proximity marketing, reaps substantial rewards for retailers and other enterprises that engage in these techniques. One Vancouver‐based restaurant that has contracted with iSIGN, a proximity marketing company, to power their proximity marketing campaign has experienced considerable results from an interactive campaign that works with their existing in‐house digital signage. In a one‐month period, the iSIGN proximity marketing system registered 150,000 mobile device discoveries (20,000 unique devices) and delivered messaging that netted
Mobile Marketing Association
IJMM Canada Issue, Summer 2012 Vol. 7, No. 1
Figure 1: How proximity marketing works with a restaurant the restaurant between $5,000 and $10,000 of new revenue. The corresponding monthly ROI for this campaign was between 330% and 660%, making the restaurant’s proximity marketing efforts the most cost effective promotional initiative in the restaurant’s history (Figure 1). THE CONTEXT These results are possible because of the growth of digital‐out‐of‐home media (DOOH, which includes digital signage employed by the restaurant in the case study above, as well as larger format media like digital billboards), the continued proliferation of mobile devices, and the general public’s familiarity and willingness to use them for commercial purposes. Coupled with mobile and proximity technology, multi‐ channel DOOH networks provide marketers with the ability to deliver content in a contextually relevant environment and at moments of maximum influence. This puts DOOH on an explosive growth trajectory; most industry analysts are projecting global digital out‐of‐home media revenues to rise substantially. The mobile element in proximity marketing’s success equation is well documented. According to recent figures, 85% of Americans over the age of 18 now own a mobile device of some kind, and the average American who owns a mobile phone spends nearly three hours a day on it. This means that marketers have a great opportunity to reach consumers through ...