An Introduction to Bluetooth Beacon Technology - Part 2

Intermission

2Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training

• Orientation & Market• Core Concepts

− Standards− The Operating System− Signal and Placement− Beacons− Hands-on− Analytics

• Networks• Alternative Technologies• Applications• Strategy

Structure

NetworksScale is essential for investment

Networks

• Beacon Registries• Ad networks• Maps• The FCC - e911

• Inventory of physical beacons• Independent of advertising content

management and sales force• By vertical, geography, vendor• Open or conditional access• Free or revenue generating

NetworksBeacon Registries

• Wikibeacon.org• Sita• Gimbal• Coming soon …

− Estimote?− Google?− Apple?

Beacon registriesLists of beacons independent of advertising content management and sales

Wikibeacon.com

WikiBeacon

Wikibeacon.com

• Allows beacon owners to manage their beacon infrastructure and track

• Enables monitoring beacon deployment to prevent radio interference with Wi-Fi access points

• Beacon meta-data management• API for app developers

SITA Beacon RegistryServices

www.developer.aero/BeaconRegistry

• Promote shared infrastructure to reduce cost and complexity

• Introduce standard beacon types and data definition to encourage reuse

• Simple to use API to discover beacons and get meta-data about beacons

• Provide tools to airport operators and beacon owners to visualize and track beacons

• Vendor agnostic

SITA Beacon RegistryGoals – reduce cost and complexity

www.developer.aero/BeaconRegistry

• Passenger Location - late arrivals• Triggering mobile boarding passes• Navigating airport• Baggage reclaim – direct to correct belt

Sita Registry – Use- cases

www.smartmeetings.com/meeting-and-event-planning-news/2013/01/04/little-acts-of-airport-kindness/san-diego-intl-airport-baggage-claim-t2/

• Airport scope v general scope - Are the airport use cases sufficiently unique that the fragmentation is warranted?

• Are they capable of keeping up?• Do they have the momentum to establish control?• Is working with SITA trading away opportunity for … what benefit?• What if OS vendors annex this space?

Questions

• Public• Private – Your app only• Conditional access

− Visibility by app− Metered for frequency and type of access− Auctioned

Beacon Registries - GimbalConditional Access

• Subset of beacon providers dynamically change the UUID …

• Not part of the iBeacon spec (as of July 2014)

• Mitigates replay attacks• Typically use rolling codes that change

the UUID based on a shared secret• One beacon can look like multiple

beacons• “Similar” to RSA• Multiple patents applied for

Beacon Registries - GimbalConditional Access

Beacon Registry - Gimbal

Bluetooth BeaconsDigital End-Caps in the Physical World

Ad Networks

Ad NetworksIn-App advertising

In-App advertising

1 minute away

• A marketplace• Content management• Campaign management• Sales people• Sales portal• Bidding, limits, targeting• Rationing / scarcity

Ad NetworksComponents

• Beacon focused− Swirl− inMarket− Mobiquity

• Generic In-App − Apple iAd− Google Admob− Millennial-media

• Uber-Apps− Gas Buddy− Facebook

• Out-door advertising − Billboard / Display− CBS, Titan, JC Decaux

Ad Network types

https://getappcase.com/blog/app-marketing/in-app-advertising

“In app ads tend to perform as much as 11.4 times better [than banner ads], meaning that they are almost as effective as web search.”

A Dilemma for Venue Owners

Indoor Maps

End user Apple/Google Venue Owner BrandsHighly familiar and convenient

Significantly enhances the value of their systems

Location services in an app all smartphone users have and use

Highly targets offers, at point of purchase

Easy indoor way finding, location of proximate facilities, products offers

Competitive requirement

Bare the cost for infrastructure Wi-Fi and beacons with no direct monetization

Opens up location advertising

Lift from increase visits and transactionsNo analytics or controlUnless they unite and take a stand will need to accept terms offered

Adding indoor fidelity to Google/Apple Mapshttp://blog.statlerconsulting.com/2014/09/02/the-airport-and-mall-indoor-location-dilemma/

Planning, Executing, Tracking and Analyzing

Campaign Management

Planning, Executing, Tracking and Analyzing

Campaign Management

Examples:• Lighthouse• Urban Airship• Rover

Campaign Management - Execution parameters

• Targeting• Frequency Throttling• Triggering

− Signal Strength− Dwell Time− Entrance / Exit

Urban Airship - Mobile audience segmentation

PREFERENCESDrive app engagement with timely, relevant content delivered right to the home screen.

BEHAVIORSAdapt messages based on how your audience engages with specific content.

LOCATIONCurrent and historical location reveals when and where users are most likely to act.

DEVICESUse information about device type, time zones and more to fine-tune content.

BehaviorLifecycle

Build profiles and deliverreal-time messages

Proximity

iBeacon

Dormant app

Favorites Purchases

Content viewsFirst open

Preferences Systems Integration

CRMeCommerce

Preference center

status level

likes shoes

sharedcontent

near beacon

new user

Urban Airship - Combine everything you know about your users

Urban Airship - Audience engagement solutions

PUSH MESSAGESdrive immediate action.

ICON BADGESalert users when new content is available.

APP IN-BOXdeliver rich content at your customers’ convenience.

LANDINGPAGESget higher response rates with rich content that marketers control.

DIGITALWALLETnever forgotten, always up-to-date.

Urban Airship - Example: Informed Beacon TargetingDrive more conversions with real-time relevant offers

Men’s Shoes

At Store Shoe Section&iBeaconFavorites

Interest in shoes & now visiting shoe section store

Trigger a coupon message

John CoombsCo-founder & CEO, Rover

Alternative TechnologiesOne More Tool in the Tool Chest

Function Outdoor Location Indoor Location Indoor Foreground and Background Proximity

Indoor Foreground Proximity and Orientation

Question Roughly where are you outside

Roughly where are you inside

Are you: Far, Near, Immediate

What are you pointing at exactly

Technology Satellite GPS, Cell Tower Triangulation

WiFi, Sonic, Cameras,Bluetooth Beacon

Bluetooth Beacon,NFC

Visible Light Communication

What Gear Should You Be Using?

Applications

• Pre-installed apps− Maps− OS Wallets - Apple Pay− Bootstrap Issues− Passbook - Passjoy

• Interesting Apps• URLs• Use Case Taxonomy

Payments

• Apple Pay− What is it− Will it be successful− Implications

• Cloud Payments− Perks Example

Tailwinds• Track record / charisma• User experience• Bank and card network support• Hands-off approach to retailer data• Security (tokenization, biometrics)

Will it be successful?

Headwinds• Momentum / attention span• Lack of compatible PoS - EMV with

NFC terminals • Online connectivity – coverage /

latency• Fragmentation

− Banking, final third split among ~7,000 banks

− iOS only− Within retailers – franchises e.g. Subway

• MCX/CurrentC merchant resistance

MCX / CurrentC MerchantsMerchants unlikely to accept Apple Pay IN STORE

StakeholderBeacons Example of complementary roles, a cpAction that beacons

can convert to, more value for PassBook beacon triggered offers

EMV Drives adoption by retailers

ISIS / Softcard Enables an iOS app, saves the credibility of NFC, increases the value of Android alternative they provide

MCX / CurrentC May cause members to defect, strengthens card networks, saves NFC, tough competitive pressure on deployment and UE

Retailers Less threatening than Google Wallet (data ownership), more work, driving up transaction costs, improved UE

Google Unfavorable comparison with Google Wallet, reinvigorates NFC on Android (better handset coverage), proves way forward

Apple Card present for iPhone ecomm!, increase value of iPhone 6, underpins value of iBeacon, mcommerce business foundation

Apple Pay Implications

ApplicationsCloud Payments

Beacon with cloud based resolution

Wallet

ApplicationsPayments example – 20% share within 4 weeks

• Start small – test and iterate• Getting a beacon app on their

phone• Controlling usage – your own app• Third party apps

− Align with the right network / standards Pick a partner friendly financial model

ApplicationsBootstrap issues

http://www.thegauntlet.ca/story/mythic-bootstraps

Technologies to Drive Mass Adoption of iBeacons and Apple Pay

Tom Benson, Co-founder, passjoy.com

Very cool but

How Do We Get Users?

How Do Macy’s LevisPepsiCloroxAudiSony

Get Users?

Give away Passbook cards

100x easier than Apps

Easy Ad Platform60 Million Audience

Pass joy

Live Demo

From iPhone, enter this into Safari:

www.pass1234.com/fb

When pass loads, press “Add”

How it works: Shows how Facebook ad can deliver Passbook card, which become an integral part of the promotional process

Pass Card Displays Beacon Msg

Up to 10 Beacons per card& 10 GPS Locations, different messages

Customers keep card for 9 months average

Back Page

Shoppers reference info

Links for instant purchase

Passes Native Apps

Built-in App Upgrade

Dashboard — New Ad

Select Audience by State/Zip

Add Beacons/GPS Locations

System Generates Ads/Cards

Thanks!

tom@passjoy.com

Tulip Land - Holland

Theme Parks

http://labwerk.com/labwerk-fluwels-tulpenland-set-revolutionize-theme-park-experience/

incorporating the use of video, audio and adding further depth to our information for those visitors who would like to know the story of the tulip in more detail

• Offers: Retail offers e.g. 0% commission on foreign exchange

• Passbook – open mobile boarding pass• Open appointment at Spa• Notifying crew of VIPs• Preemptive cocktail ordering?!

ApplicationsVirgin Atlantic – Heathrow – Estimote - Sita

http://www.zdnet.com/uk/virgin-atlantic-tests-apples-ibeacon-at-heathrow-7000028987/

Applications

• Personalized Digital Display− Generic segmentation

− Duty free: Perfume for women, after-shave for men

− IndividualizedWelcomeThella Bowens Your car is in J02

Heidi Thanks for being a Good Traveller

You have offset 232 tones of Green house gasses Planting 34 trees in the Amazon

Digital Display1

ApplicationsLuggage tracking

• Check-in Passbook Ticket• Points-of-Interest• Ordering from seat• Merchandise offers

ApplicationsMLB.com At the ballpark - Gimbal

• Geofencing• Geo targeted push

messaging• Points-of-Interest• Hyper local events• Offers

ApplicationsNFL - Gimbal

Mannequins

http://www.ibtimes.co.uk/iconeme-puts-low-energy-bluetooth-beacons-into-mannequins-so-you-can-shop-go-1460724

Beacon App TaxonomyA structure for classifying applications

… or translating the 7 basic dramatic plots to the world of proximity

The seven basic plots are: • overcoming the monster• rags to riches• the quest• voyage and return• comedy• tragedy• rebirth

Use-cases

Application SelectionCriteria

Application

Strategy

StrategyOverview• An organization specific process• Questions

• AltBeacon• Cost of beacons• Things to worry about

• Panel Discussion

• Where - are we going?• Why - are we going there?• How - do we get there?• What

− What will happen (assumptions)− What might happen (scenarios) − What might go wrong (risks)?

StrategyQuestions

1. Marinate2. Decide Critical Success Factors3. Simplify steps4. Think through details / issues / costs5. Test6. Analyze7. Refine8. Repeat until done

StrategyHow - do we get there?

• The OS is in Control• The ecosystem is critical• Therefore Apple/Google are

in control

StrategyAssumptions

• It’s a fad− Not reliable enough− Costs too high − Other technology dominates− Too fragmented

• The value is captured by others− Apple adds its own ad network− Apple introduces its own conditional access layer

• Invest: too much / not enough / in the wrong place• Too early / too late• We make wrong choices – partners / use cases

What – might go wrongMarket Scenarios

Free beacons

• BizReport : Mobile Marketing : July 18, 2014

• iBeacon firm offers free hardware and installation to UK retailers• iBeacon technology is becoming popular with both consumers and

businesses. A UK-based iBeacon technology firm is offering free iBeacon installation and deployment to retailers in the run-up to the valuable festive season.

• by Helen Leggatt

• iBeacons are becoming the must-have mobile technology for brick-and-mortar stores. Used wisely, iBeacons can prompt store visitors to participate in in-store promotions and direct them to products that are relevant and useful to them, at the moment that is most effective.

• Stores in the UK that carry FMCG, alcohol or publishing brands can now get iBeacon technology installed free of charge courtesy of iBeacon security and deployment firm Appflare.

• As part of their offer, Appflare will provide qualifying retailers with its full iBeacon technology, including installation and maintenance, plus a campaign platform, free of charge for three years. For retailers that do not yet have an app, Appflare will also provide one, free of charge.

• The offer is an ideal opportunity for stores to kit themselves out with iBeacon technology in time for the fast-approaching festive season.

• "The reason why we are offering iBeacon technology to retailers for free is because we don't think the value lies in the hardware, but in the meaningful contact with a customer," said Owen Geddes, Founder and CEO of Appflare. "Retailers want to get their iBeacon solutions installed by September in time for the Christmas lock-down. Offering the service for free eases the installation process, which is great news for brands that are currently preparing their festive campaigns."

Altbeacon.org

• Developed by Radius networks

• Potential− Cross OS / Beacon API standard

• Issues− Conflict with Bluetooth SIG− Not well promoted: poor timing, lack of endorsements− Lacks the tight OS integration required− Lacks the tight Beacon management hooks required− Beacon vendors already offer Cross OS APIs

AltBeaconhttp://blog.statlerconsulting.com/2014/08/08/altbeacon-a-standard-to-be-avoided/

The Panel

• Vilat Keomoungkhoun – Director BD – Indoor Atlas• Jeff Stevens – CEO - ContextM • John Coombs – CEO – Rover Labs• Tom Benson – CEO - PassJoy• Ankit Agarwal – CEO - Micello

Panel Members

Panel Question

• Is the beacon thing a fad, or is it here to stay?• How does Apple Pay and NFC on iPhone 6 impact the Beacon market?• How much emphasis should developers be placing on the different mobile OSes for beacon apps?• Where is the money to be made from beacons and who can make it?• What are some of the beacon driven apps or services you like most?• Where do you think this ecosystem is going?• How should a venue or retailer justify investing in this area, is there a hard ROI?

• Orientation & Market• Core Concepts

− Standards− The Operating System− Signal and Placement− Beacons− Analytics

• Networks• Alternative Technologies• Applications• Strategy

Summary

Feedback

• More of• Continue• Less• Suggestions

www.statlerconsulting.com

Thank youFollow us on:

www.facebook.com/CauseBasedSol

@stevestatler

An Introduction to Bluetooth Beacon Technology - Part 2

Technology

Transcript of An Introduction to Bluetooth Beacon Technology - Part 2

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