Kurt Fromherz Sunrise Marketing July 12, 2014 !!!Contextual Marketing With iBeacon !

Smartphones are changing the retail landscape. They help us research, compare, and purchase products not just online, but also in stores. To be precise, 84% of smartphone shoppers use their phones while in a physical store **. Apple has already jumped on this opportunity with iBeacon, its new technology presented as the hot new multichannel device for retail operation.!!iBeacon is an Apple technology, and not actual hardware. We have featured Estimote beacons in the report. Beacons use Bluetooth Low Energy to accurately determine your location and can push your information through an app if you are closer than 150 feet from the beacon.!!

�1

“Beacons are a small, inexpensive Bluetooth-enabled devices that connect with consumers’ smartphones as they pass within several hundred feet of an installed location, and has been hailed as a bellwether in the latest evolution of location-based marketing. It’s now possible to target the exact location of shoppers in the store, and feed them messages, coupons or discounts based on their location. The iBeacons circumvent the expense of Wi-Fi and the inaccuracy of GPS targeting indoors, built into devices running iOS 7. They can be placed seemingly anywhere, indoor retail, outdoors sales area, product displays, even displays external to any retail environment.” ***!!Push and targeted marketing: beacons allow marketers to send you personalized notifications with promotions and coupons when you enter the store and walk past product displays. Our platform allows for sending coupons right to the user’s rewards. Since every interaction with a beacon creates a unique signature we can then correlate data when a customer would ‘check in’ at the check out register. Currently many retailers use our epunched.com platform as a customer loyalty program. Each customers purchase is validated at the register with a ‘punch’, again leaving a digital signature. The combination would allow you to collect data in order to judge the effectiveness of your merchandising tools.!!Since the actions on the beacon can be reset at any time you could easily test out different scenarios to measure the results. You can also use beacons deployed in displays to deliver rich content such as videos, planting information, or photos of companion plants.!!• Interactions with advertised products increased by 19x for users who received a

beacon message.

• In-store app usage was 16.5x greater for users who received a beacon message.

• Shoppers who received a beacon message were 6.4x more likely to keep an app on their phone, versus those who did not. **

�2

“Successful geofencing improves the consumer experience while increasing engagement value for brands.” - Todd Dipaola, CEO of inMarket.

Retailers will use geofencing to determine a user location and send contextual messages when they enter that zone.!!“Smartphone adoption and mobile app usage provides marketers with an opportunity to engage consumers when they are near a branded location or point of interest using real-time location-specific targeting. comScore data shows that Americans spend more time using mobile apps than browsing on PCs. The next generation of mobile shoppers, 18-24 year olds, spend two thirds of their online time using a smartphone or a tablet. According to eMarketer, 32 percent of smartphone users use mobile apps for shopping at least monthly. Furthermore, the Adobe Digital Index shows that consumers use smartphone apps more than twice as often as visiting mobile websites, and app usage outpaces mobile web visits by an average of 100 minutes per month.!!Don’t underestimate the value of the perpetually connected consumer. Thirty-two percent of shoppers already use mobile shopping apps, and are waiting for and willing to try proximity-based apps, because they already look for and expect personalized marketing messages.!!iBeacon will become an integral part of the consumer experience to nearly every business. It’s the future, and marketers need to figure out how to utilize this technology of tomorrow, today, in the most efficient way. I predict by the end of 2015 every major US stadium or venue will become “beacon-aware” as they seek to improve fan engagement with smartphone users at the

�3

game, concert, or event. Current beacon deployments by early US adopters such as the NFL, MLB, NBA and WWE, along with the success of Adobe’s beacon deployment at the London summit indicate that beacons will go global. Retailers and shopping malls are next — they will deploy beacons on a larger scale by mid-2015. The challenge at hand is both technological and human-centered: brands must determine how to integrate location-based technologies with existing store systems in addition to educating and enabling in-store staff.!!As a long-time proponent of mobile-first strategy, I believe iBeacons have the potential to not only revolutionize marketing, but to bring location-aware devices to their full potential. iBeacons will turn our smartphones into personal assistants who enrich our lives by helping us complete activities, informing us about what’s right in front of our eyes, and facilitating shared experiences.” **!!

!!Beacons have effective ranges from within inches to 150 feet. They are programmed at immediate (2”-12”), near (up to 8’) and far (up to 150’ - conditions permitting).

�4

Helpful Details:

Geofencing: Geofencing is a method of using a variety of different technologies that can tell the location of your mobile device and take action based on that location. For example, when your mobile device comes within a certain distance of a donut shop, a geofencing app could send you a coupon for the shop.

Interesting articles:

http://techcrunch.com/2014/06/16/ibeacons-usher-in-the-contextual-shopping-era/?ncid=rss

http://www.macrumors.com/2014/07/10/mlb-ibeacons-second-phase/

http://www.ibeacon.com/finally-stats-to-back-up-the-ibeacon-hype/

http://techcrunch.com/2014/07/08/in-five-years-ibeaconbluetooth-low-energy-device-market-to-reach-60-million-devices/

http://www.godigitalmarketing.com/apple-ibeacon-geo-fence-marketing/

http://appleinsider.com/articles/14/04/28/new-york-city-bars-to-use-apples-ibeacons-for-app-driven-pub-crawl-promotion

�5

Where is Apple heading with iBeacon technology?

References -

* iBeacon – The Future of Retail? Posted on June 12, 2014 by VALERIE ZELLER

** From the inMarket press release

*** Ray Pun , Mobile Marketing Solutions across the Adobe Marketing Cloud

!!

�6