Bluetooth Proximity Marketing

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Bluetooth is a type of short-range wireless technology found on most mobile phones. Within a specific radius, Bluetooth offers free downloads, such as a ring tone. The technology has gained media prominence recently thanks to a consumer research project carried out in Bath.

There are other ways to connect with consumers on mobiles aside from Bluetooth. Text messages are potentially targeted, but content is limited. There are other short-range wireless technologies, such as near field communication, but phones are often not compatible.

- Who's doing it?

This year, Disneyland Resort Paris launched a Bluetooth-based system offering visitors information about attractions and queuing times.

Website Classical.com used it at the Royal Albert Hall during The Proms, with ticket holders sent a link to access a free download.

To promote the ITV series, Pushing Daisies, a temporary shop front was constructed in London where passers-by could choose downloads through Bluetooth. "There is a 10 second window of opportunity when a user will either ignore or download, so the content must be quick and easy to receive," said Paul Hicks, head of operations at digital agency Cunning.

- The lowdown

The University of Bath research collected data about how consumers moved around the city, following their Bluetooth signal without permission. This offered a glimpse into how Bluetooth data capture could be used in the future.

There are concerns over spamming, which threaten consumer confidence, says Ian McNamara, marketing solutions director at Occam. "A permission-based register asking people if data could be collected from Bluetooth could work, but sending out blanket offers without permission worries them," he says.

Hicks thinks Bluetooth will evolve: "Software to capture data could well become available, but other methods of mobile communication will also develop."

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Coca-Cola's sponsorship of the 2008 Summer Olympics in Beijing will be fronted by Pioco, the first Bluetooth interactive media marketing campaign of its kind.

Pioco has enabled thousands of locations in and around the Olympic stadiums, hotels, restaurants, clubs and cafes of Beijing and Shanghai in order to deliver Coca Cola Bluetooth video commercials directly to Bluetooth-capable handsets.

“Coca-Cola has been posting the commercials all over TV, so the idea is to use the same material and make is accessible on physical locations to Chinese youngsters,” said Steve Chao, co-founder and CEO of Pioco, “They could download the ad and virally pass it to their peers.

“The Bluetooth has already been put on Coca-Cola’s Torch Relay Truck campaign, which traveled through major Chinese cities, so it’s as if the sequence has been completed,” he said.

Coca Cola's Olympic Torch Relay Truck campaign claims to have reached millions of consumers in preparation for the summer Olympic Games, starting on August 8.

Upon entry to the Bluetooth wired locations, users receive a message asking if they would like to download content from Coca Cola.

Pioco and Coca Cola have been partnered for about two years, and claim the campaigns have returned great results.

In previous campaigns, the companies experienced conversion rates closer to 35 percent. At events that prompt participants to enable their Bluetooth devices, as will be the case with many Olympic hotspot locations, the conversion rates jump up to 65 percent.

Pioco’s Bluetooth hotspot network in Beijing covers the International Trade Center, Financial District, Zhongguancun commercial district, Wangfujing shopping street and Xidan shopping district, Dongzhimen transportation node, and Xizhimen subway area.

Previous campaigns have extended to television, online outlets, magazines, out-of-home and other print media, but this campaign is unique in that it allows advertisers, such as Coca Cola in this example, to directly reach consumers in outdoor entertainment venues, such as those at the 2008 Olympics.

The campaign is targeting high-school and university students, as well as young white collars workers aged 14 to 22.

Mr. Chao said that the very first campaign Pioco did for Coca-Cola two years ago was situated in a convention center. Coca-Cola employed a famous pop group from Taiwan, S.H.E, so the kids were more willing to be engaged in cokes interactive campaigns.

A lot of kids have experienced Coke’s Bluetooth campaigns in the past, as it echoes what they see on TV and the internet.

Mr. Chao said that it will absolutely help out with the consumption of Coca-Cola, and enhance its image.
Coca Cola's partnership with Pioco marks the first time that a brand has used Bluetooth media for its marketing campaign in Olympic history.

Since its founding in 2006, Pioco has been involved in the OOH advertising space. The company, headquartered in Shanghai, has with offices in Beijing, GuangZhou, Hong Kong and Taipei.
Pioco has initiated a new form of Bluetooth broadcasting for media, using a B2C interactive communication strategy.

With this service, advertisers can set graphics, sound, text, video and animation. Pioco also provides advertisers with accurate statistical feedback and scientific data analysis by tracking the unique Bluetooth ID of consumer devices.

“Bluetooth marketing has been pretty hot all over the world,” Mr. Chao said. “In China we started doing it two years ago because Chinese mobile phones were mostly equipped with Bluetooth and there is a tremendous amount of opportunity because cities are very dense, especially in commercial areas.

“Those are the best opportunities for users to receive MMS messages. It makes total sense,” he said.