Why Beacons Beat Display Ads

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By Staff Reports

(DGIwire) – Today’s consumer brands face a dilemma: in an era when there is so much dislike for traditional display advertising, how can they effectively reach their advertising and marketing objectives? According to a recent story on Marketing Tech News, the solution might lay with technology—specifically with beacons, the devices that use low-energy Bluetooth connections to communicate with smartphones and tablets.

As Marketing Tech News puts it, display advertising has become guesswork dressed up as science, with the hopes that the sheer volume of display ads will make up for a lack of relevance and context. Meanwhile, younger customers are drifting away from display ads; in 2016, for the first time, mobile advertising overtook TV and desktop advertising.

Beacon-enabled proximity marketing allows brands to hone in on their target audience individually.

“The business case for tailored, quality, individual-based advertising has never been more important,” says Barry Stone, Director of Marketing at Digital Social Retail, a company that has developed a beacon management platform that is revolutionizing the relationship between customers and brands. “Beacons make it possible to engage consumers via mobile push notifications; once in the store, past purchasing preferences can be used to feature relevant product offers in a way that static display ads never could.”

With the appropriate beacon platform, a brand can promote specific products at specific times of the year, themed to holidays and/or the changing seasons: e.g., clothing retailers can promote fall or spring fashions while restaurants can promote seasonal menu items as well as specific breakfast/lunch/dinner selections based on time of day. This increased sensitivity to the variability in customers’ desires enhances a brand’s value to the consumer.

More generally, beacons (also called connectors) make proximity marketing a practical possibility, alerting passersby in the vicinity of a store about the offers on tap inside and enticing them to enter the premises to learn more. Numerous studies spotlighting the power of proximity marketing have analyzed its importance in an era when people are being tempted to purchase many items directly from their smartphones.

The Social Retail® digital convergence platform developed by Digital Social Retail works seamlessly with mobile screen messaging triggered by BLE beacon connectors communicating with iOS and Android devices running Bluetooth. The platform has proven itself in a wide variety of applications to date. Retail locations and shopping malls, college campuses, restaurants, sports areas and hospitals—as well as entire city shopping districts—are being outfitted with beacon connectors and transforming how the public interacts with their surroundings.

“Beacon connector technology allows brands to engage and maintain a relationship with their customers that was never possible before, and the return on investment to establishing a beacon present is growing ever larger,” adds Stone.

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