
One Too Many Beacons Drives Users Away
New research into iBeacon advertising technology has shown that multiple push messages sent to one shopper within a single store can drop iBeacon related app usage down by 313%. The study, conducted by the beacon technology firm InMarket, reaffirms a long standing notion within the advertising community; too many advertisements drive away potential customers rather than attracting them.
Many marketing firms have started to seriously consider utilizing beacons as part of their marketing campaigns since Apple revealed the integration of this technology into iOS 7. Beacons, which can be as small as the size of a quarter, enable advertisers and marketers to know the exact location of their customers, allowing them to send deals and coupons relevant to their location in the store. Retailers such as Macy’s and Walgreens have already begun rolling out beacons into their stores to test its usefulness.
Although multiple beacon push messages can be a nuisance to potential purchasers, an accurately targeted and well-timed message can increase shopper interactions by 500% according to the same InMarket report. Additionally, consumers are 7.5 times more likely to look for a product if the message is relevant to their shopping needs, driving in-store app usage 16 times higher.
So herein like the million dollar question; what constitutes a perfectly timed message and how do advertisers go about it? Highly specialized messages based on consumer preferences is one way to go, but collecting data on these shoppers poses a problem for marketers. It’ll be interesting to know how advertisers will address this issue in the coming future.
Great summary of the Beacon analytics! I response to your note about collecting data to help determine effective messages and frequency.
As with all effective marketing its how you segment the targeted prospects and Beacons gives you the advantage of the amount of time at or in a certain location associated with a specific type of service or product. The challenge is access to any social demographics or psychographics on the prospects. This may be available in the social aspect of the app.
Wait till we have drones with beacons and apps. You Think!
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[…] Given how new and misunderstood ibeacon technology is, we can guess this won’t be the last time the technology shows up in the news regarding privacy and authorization issues. As security and privacy concerns are pushed into the public spotlight, companies playing in the beacon space will have to tread lightly. […]