UPDATE: The Google beacon platform was deprecated in December 2020 and will shut down on April 1, 2021.
In the marketing industry, it’s not uncommon for new technologies to emerge and then quietly disappear for a few years. Beacons are one such technology that’s had to take some time away from the limelight in recent years. These weren’t only supposed to transform the nature of location-based marketing but also give birth to a new wave of smart cities around the world – something we’re still waiting to see, five years later.
The fact is, beacon technology needed time to mature and there
were a number of integration issues that had to be addressed before it could be
widely adopted. Google decided to take the initiative in 2015 with its own
development platform aimed at solving these problems, and a lot of progress has
been made over the past few years.
Now, beacons look like they’re ready to start living up to some of the hype. This means proximity marketing will be a priority for a lot of brands in 2020.
Beacons are small devices that send out signals over a short distance, generally a few metres in diameter. Devices within this range are able to pick up the signal transmitted by the beacon and this allows you to target users at close proximity with specific messages or actions.
The thing is, you’re not only limited to a single beacon. With a
network of beacons set up within a single city, metro system, shopping centre
or a single store, it’s possible to send highly targeted messages to every
person in the area as they move from one location to another.
Imagine tourists receiving notifications about the nearest
landmarks as they travel around London or shoppers seeing a list of a shop’s
best offers as they walk past the store. These are the kind of opportunities
beacons make possible and there’s a lot of reason to be excited about this
Here’s a look at some of the key benefits/opportunities beacons
have to offer:
Beacons aren’t limited to retail brands but these are the most common use cases so far – and probably the easiest to imagine. Martini has used beacon technology to notify bartenders when customers need a refill, transport networks are using it to guide passengers through their journeys and Singapore’s award-winning Changi Airport uses it to automate immigration checks.
Yes, beacons have been around since Apple introduced iBeacons in
2013 and there was a lot of buzz at the time about the technology being used to
build smart cities around the world. However, like many tech innovations,
beacons didn’t make the instant impact many predicted and things have been
pretty quiet for the past five years.
Unfortunately, the first generation of beacons had a number of
practical integration problems.
Brooklyn Museum wrote an interesting piece in 2015 explaining the issues it had with iBeacons, ranging from a lack
of serial numbers on the devices, tracking problems between multiple devices
and various other integration challenges.
“We are still happy we
went this route, but the practicalities have been difficult. I have to tell you
we’ll likely switch to Apple’s Indoor Positioning as fast as we can possibly do
it; at least, I hope, before batteries in these beacons run out.” – Shelly Bernstein, Brooklyn Museum
Clearly, the technology had a lot of potential but it still had
some growing up to do before it could be a practical option for marketers and
retailers on a mass scale.
Beacon technology took a giant leap forward in 2015 (which we’ll
take a look at in the next section) and has continued to evolve since then. In
2019, some of the world’s biggest brands were using the devices to innovate
customer experiences and engage audiences at major events.
One of the most ambitious use cases of beacons has got to be
Amazon’s cashierless convenience stores, which have opened up across Chicago,
New York, San Francisco and Seattle. Amazon Go stores use beacons to
remove the queues and checkouts from every day in-store purchases.
That’s not the only way Amazon was using beacons in 2019,
either. The eCommerce giant also used the devices to track attendees at its
AWS conference in Las Vegas to gain insights into foot traffic throughout
On the other side of the world, at the Nike House of Innovation in Shanghai, the sports brand uses more than 40 beacons across a 41,150 square-feet space in the famous Nanjing East Road shopping district to create a seamless shopping experience. The beacons allow customers to pay for goods using Instant Checkout spaces and collect reserved items from lockers at multiple locations.
Meanwhile, one of the oldest and most successful applications of
proximity marketing comes from Starbucks, which uses beacons to send offers to
customers as they walk into stores. Using the mobile app, users can also place
orders and pay for their coffee, ranking up reward points for every sip.
The campaign has been so successful that, until last year, the Starbuck’s app was the most widely used mobile payment platform in the US and it’s still used far more than the likes of Google Pay and Samsung Pay.
In 2015, Google launched the next generation of beacon
technology with Google
Beacon Platform and the open source Eddystone format. Google Beacon Platform provides
developers with all the tools and resources they need to build their own beacon
functionality and Eddystone is the beacon technology alternative to iBeacon.
Eddystone is similar to iBeacon in almost every way, except for a few crucial
Google Beacon Platform has enhanced the capabilities of beacon technology immensely and a lot of the major beacon manufacturers are now producing devices that support all of the functions possible with Eddystone. However, the real triumph of the Google Beacon Platform is how it has made development easier on the software side of things and the practical implementation of beacon systems, which the likes of Brooklyn Museum and many retailers have struggled with in the past.
In the video above, you can see Google’s Peter Lewis talk about
a number of ways Google Beacon Platform is solving many of the development and
implementation problems the technology has had in the past.
One of the biggest development barriers with the first
generation of beacons was that individual beacons could only be implemented for
a single action at one location for one application only. In a practical sense,
this means developing apps with beacon integration quickly becomes unmanageable
and this is one of the most important solutions Google Beacon Platform
Google has stepped away from the single-beacon-for-a-single-use
formula to build a system where you can assign multiple actions to a single
beacon. So, now you can develop your apps where the key variable is location
and you can assign multiple interactions to these locations – a far more
streamlined development process.
Better yet, you can do all of this within the Google Beacons
dashboard without hard coding your app to detect the frequency of each
individual beacon. Instead, you can simply register all of your devices to
Google Cloud platform and create them as locations via the Proximity Beacon API
or the beacons dashboard.
With your locations set up, you can jump right into the
functionality of your app and start assigning actions to each location.
Aside from a cleaner development process, this also means you
can do more with fewer beacons and the overall size of your device network will
be smaller. This, of course, makes the practical implementation of a beacon
system less complex, but this isn’t the only post-development issue Google is
looking to fix.
Another common problem with beacons has been managing and
testing systems after they’ve been implemented – namely to make sure they’re
functioning correctly. For example, if you’ve got multiple beacons set up in
your business location, you want to know users are connecting with the device
closest to them, not one further away.
We mentioned earlier that Eddystone allows you to send different
types of data signals from your devices; one of these includes performance data
that helps you track the status and functionality of each individual device.
Perhaps the biggest advantage of Google’s cloud-based
development infrastructure is that it enables developers to share resources.
This means brands can team up to create immersive experiences between
applications – for example, a retailer tapping into the beacon system of a
shopping centre and integrating functions into their own app.
This can work on a much larger scale too, as we’re seeing with Amsterdam’s open beacon network, which is accessible
to developers who think they can tap into the city’s business potential. Now,
we’re finally talking about a workable system for the kind of smart cities
industry experts were so excited about when Apple first introduced the iBeacon,
half a decade ago.
Google isn’t the only company developing beacon technology, but
it deserves credit for solving a lot of development and implementation issues.
Now, the tech giant is teaming up with cities around the world
to create open beacon systems that are accessible to developers. Brands can use
the same open-source technology to build their own systems and kick-start their
proximity marketing efforts.
Buying a collection of beacons is easy but creating a proximity
marketing strategy that maximises their potential is something else entirely.
The likes of Amazon and Starbucks are using them with great success but a
successful strategy needs to solve real consumer problems and close the gap
between online and offline consumer experiences.
Here are some resources that will help.
This guide from Shopify runs through the key use cases of beacons technology for smaller retailers:
We’ve also seen how Amazon and Nike use the technology to create
a mobile checkout experience – it all comes down to what you want to achieve
in-store. Don’t just deliver location-based messages because you can; determine
which customer problems/needs you can solve with them first.
As with any kind of marketing strategy, define what your goals
are and then determine how you can use the tools at your disposal to achieve
If you’re looking for a more comprehensive look at the practical
side of running a proximity marketing campaign, this guide from
Beaconstac.com explains the different hardware options available and what
they’re capable of. This will give you an idea of what it will take to
physically install the system you need.
Finally, on the software side of things, for a more technical
look at using Google Proximity Beacons, check out this two-part tutorial from ProTech that explains the
setup process and how to solve a number of common problems.
If you can’t find everything you need to know in this article and the resources we’ve linked to, call us on 023 9283 0281 for a more in-depth discussion on how to create a proximity marketing strategy for your business and implement the right hardware/software system.
Ben is an SEO Specialist at Vertical Leap.
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