Location Specific Marketing: Bluetooth or WiFi

Many marketers have been dealing with the concepts of mobile marketing for a few years. The mobile marketing industry is still immature and will see many adjustments and confirmations in technique effectiveness. While SMS, MMS, and other mobile techniques like QR codes continue gain popularity more companies will try to integrate emerging mobile marketing channels. Will Bluetooth or WiFi advertising be a part of your marketing mix?



Bluetooth Marketing

Bluetooth marketing, also known as Crowdcasting, is a form of direct advertising that delivers content to mobile users. This delivery method is based on technology that requires the recipient to be in close proximity to the source. The range is usually within 100 feet in any direction. Newer systems have a much stronger signal and can cover up to six times the area.

The source broadcasts a signal and any nearby Bluetooth enabled device will receive the offer or content. The user must accept the message prior to viewing the content. If the user has Bluetooth disabled, in some instances a signal can alert the mobile user that an offer is available to view. Content can exist in several forms such as SMS or text messages, bar codes, audio and video files, and any other file format a device supports.

WiFi Marketing

WiFi networks or Hotspots are increasing in number at many locations across the US. As a mobile user enters a Hotspot they can easily access the internet. Companies use Hotspots as a marketing tool to increase foot traffic to their location attracting those seeking WiFi access. Businesses using WiFi networks can also monetize that network by placing advertisements on that network. The WiFi network allows for a wide variety of communication from businesses to consumers.

The costs involved with Hotspots is manageable. Systems can be installed and other related costs will be minimal as the technology is readily available and requires no major construction changes. Consumers are also looking for the Hotspot and are already accustomed to online-based advertisements.

Adoption and Diffusion

Recent Bluetooth studies have been limited in sample demographic as the groups studied were mostly younger consumers. One study suggested that significant changes must occur to implement an effective marketing campaign using Bluetooth because the technology just isn't advanced enough. Many consumers did not like the service for two main reasons:

1. They distrusted the service for privacy issues 
2. Enabling the feature quickly drained the battery

Bluetooth marketing has enormous potential but is not widely used when compared to WiFi. Sending very specific demographics targeted messages is easier with Bluetooth. However, because of privacy and trust issues WiFi will continue to evolve at a faster pace. Once the battery drain issues can be resolved Bluetooth will likely be the next big marketing tool unless something else is developed sooner. If you aren't using WiFi advertising as part of your marketing mix, consider how it could increase traffic to your website or brick-n-mortar location.