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What Is Proximity Marketing?
Wikipedia defines proximity marketing as"... the localized wireless distribution of advertising content associated with a particular place. "
Proximity
The first key point relates to localized distribution. The idea is that relevant information is pushed or offered to the consumer only when he/she is physically close (hence, "proximity") to the information source. Such an interaction implies movement into the target zone--therefore it makes sense that wireless devices, particularly cellphones, are the preferred device for proximity marketing.
A proximity marketing system must employ some technology which is capable of discovering users in the target zone. Currently, Bluetooth is the standard choice, but other options include WIFI, cell tower proximity, GPS and RFID. Although Bluetooth is not without some challenges, including lack of standardization in its profiles, the other technologies are presently lacking one or more key attributes needed for this kind of interaction. The details of this are a topic for another article.
Marketing
The second key point in proximity marketing is, naturally, "marketing". Although a variety of different types of applications and/or communication could be imagined for a proximity scenario, the term proximity marketing is specifically focused on the use of wireless proximity communication for the purpose of marketing or advertising a business or service. Current examples of relevant marketing applications include:
- A store in the proximity of the customer (or vice versa, I suppose) sends the customer a message regarding a special or coupon for the store.
- At a music event, a proximity marketing point is used to allow fans to receive ringtones, wallpaper or mp3s for their favorite band.
- For marketing at a conference: offering contact information and other promotional material.
Opting In
A third key concept, not explicitly stated, is the concept of "opt in". Advertising transmissions should only be received by individuals who elect to receive them. Although viewers got used to mass advertising related to television, the massive problem of email spam has made users hypersensitive to unwanted communication. This problem will be magnified on a cellphone where real estate is at an ultra-premium.
Some people will be adverse to marketing or advertisement of any kind. Of course, these are the same people who want free television, free bandwidth and free beer, if possible. However, I believe there is enough evidence to support the idea that most reasonable people don't mind marketing when it is of high quality, not terribly intrusive, and--most importantly--if it has a high relevance to their personal situations, needs and desires. One of the objections to mass advertising of any kind is that it frequently comes to the wrong consumer at the wrong time? How often do you actually buy a car compared to the thousands of times (per day maybe) you are hit with new car adverts? I won't even go into the issues surrounding feminine hygiene and male performance products. Done correctly, proximity marketing can be a win-win proposition for advertisers as well as consumers. Advertisers can get a much better response from consumers actually in the vicinity of a product or service, especially if they opt in. Consumers get advertisement that is much more likely to be relevant or convenient for them at that moment.
