#locationtargeting

How does it work? It was recently launched without much fanfare as part of iOS7. It solves a few of the problems associated with GPS: low accuracy, it doesn’t work well inside buildings (if at all) and it’s a heavy drain on your battery. Apple's iBeacon gets around these issues using Bluetooth Low Energy (Bluetooth LE), a new low power version of Bluetooth. Retailers can position iBeacon transmitters anywhere they like and iBeacon can detect an iPhone’s proximity to within a few feet. It runs in the background, using minimal power and can be used by any iOS application to trigger alerts, deliver information or, potentially, to track a user’s movements. It’s also cheap to install ($99 for three transmitters), backwards compatible with any iOS7 device and has potential to work with Android devices using current Bluetooth chips.

In-app Push Messages The ability to easily add location-based push messages opens up new possibilities in app development. Alert messages can be pushed to apps, for example a coupon in Passbook. Directions, vouchers and information, can all now be delivered to smartphones on a much smaller scale of accuracy (when passing a specific product in the store, rather than just entering or being nearby a store). Finding a product will not only be easier for the customer, but the retailer can take the user on a route that’s optimised for impulse buys. Tracking movements For the first time a person’s movements around a location are fully trackable. A customer’s movements could also be linked back to social networks and other online data via the apps that are able to track their movements. This means that a person’s real world behaviour can be used to target them online and vice versa. If you like Levi’s on Facebook, for example, and you enter a department store with a Levi’s franchise, you could receive offers and information from Levi’s on Facebook. Or, if you’ve spent time at a Levi’s store recently but you’re not a Facebook fan, Levi’s could target you with ads to like their page. If iBeacon becomes popular, Apple could be able to track a person’s real world movements, mobile app usage and their offline payments – a very powerful data set for retailers. Multiple-service user journeys could be tracked, for instance, where people tend to eat after watching a movie and how they travelled home afterwards. This kind of data would make Google Maps and Foursquare’s efforts look primitive. Payment It can store credit card information and be used to pay for purchases. As it requires no additional technology to be added to phones it could easily replace NFC payments. Apple could eventually link up iBeacon with TouchID and allow users to authenticate real-world payments with the touch of a finger. It has the potential to revolutionise in-store shopping and bring the features of shopping on the web to the store. Reviews, comparisons, tech specs, and even payment could be handled on your phone.

How are brands using it? Major League Baseball is experimenting with iBeacon with plans to install it at stadiums next season. Their app will then be able to direct users to their seats, push video content and deliver coupons when they pass the hotdog stand. High Mobility is developing a parking payment system. American Eagle Outfitters plan to have them in-store next year as a replacement for NFC. Apple's iBeacon looks set to not just change the way we shop offline but also the way we move around our cities and receive information. We’ll report back soon when more brands have it up and running. If you work in retail or your brand has customer-facing premises, it could be time to start planning.

Jamie O’Brien, Social Editor, TBG