Skip to main content

Retailers Apply New Advertising Network Technologies

Retailers are adopting a new wave of wireless technologies that could transform the shopping experience in numerous ways. Wireless in-store beacons are a key component of this strategy. These tiny beacon devices broadcast small pieces of information to nearby shoppers via their smartphones, which are enabled to receive the message via a retailer's software app.

What's in these messages? Personalized advertising promotions that are targeted at consumers. ABI Research now forecasts that dedicated Bluetooth low energy (BLE) beacon advertising networks will be worth over $2 billion in revenue by 2020.

ABI has been studying the use of BLE beacons, audio/ultrasound and LED/VLC for advertising purposes across large third-party networks, Out of Home (OOH) and in-store brand advertising.

"What is clear is that BLE beacons are not enough, and already many of the most successful advertising networks are using audio/ultrasound technologies," said Patrick Connolly, principal analyst at ABI Research.

Longer term, the ABI market study also uncovered the use of LED/VLC to help further augment these networks. This is a hugely powerful technology that can have a major impact on scaling the mobile advertising industry.

Companies such as InMarket, Swirl Freckle IoT and Mobiquity have begun massive BLE beacon advertising network programs in North America in 2015. But worldwide, a host of startups are using hybrid BLE beacon/audio technologies -- including YAP, Perples, Blesh, Shopkick and Ecods.

This hybridization trend is essential to support the short-term reach and frequency limitations of iBeacons, given the requirement for active BLE on the handset and user opt-in (achieved by downloading and using the retailer software app).

ABI believes major internet players --such as Facebook, Baidu, Tencent and Google -- will have a significant presence in this space, with many already developing the ecosystem necessary to support their own mobile advertising networks.

Looking specifically at the OOH space, the banning and/or removal of traditional billboard advertising in cities like Sao Paolo, Chennai and Paris is an interesting emerging trend with major repercussions.

According to the ABI assessment, proximity technologies could create a way to circumvent this trend, while creating far more personalized advertising. Moreover, OOH deployments will break the 500,000 mark by 2020, as advertising companies rapidly embrace these new technologies.

The third major trend driving the growth will be major brands deploying their own advertising networks in-store in conjunction with their retail partners. Already, major brands like Elle Magazine, Coca-Cola and Unilever have all ran campaigns using this approach.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C