An Introduction to Bluetooth Beacon Technology - Part 2

1. Intermission

2. 2 Statler 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

3. 3 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Networks Scale is essential for investment

4. 4 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Networks • Beacon Registries • Ad networks • Maps • The FCC - e911

5. 5 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • Inventory of physical beacons • Independent of advertising content management and sales force • By vertical, geography, vendor • Open or conditional access • Free or revenue generating Networks Beacon Registries

6. 6 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • Wikibeacon.org • Sita • Gimbal • Coming soon … − Estimote? − Google? − Apple? Beacon registries Lists of beacons independent of advertising content management and sales

7. 7 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Wikibeacon.com

8. 8 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training WikiBeacon

11. 11 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training

14. 14 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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 Registry Services www.developer.aero/BeaconRegistry

15. 15 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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 Registry Goals – reduce cost and complexity www.developer.aero/BeaconRegistry

16. 16 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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/

20. 20 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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

21. 21 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • Public • Private – Your app only • Conditional access − Visibility by app − Metered for frequency and type of access − Auctioned Beacon Registries - Gimbal Conditional Access

22. 22 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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 - Gimbal Conditional Access

23. 23 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Beacon Registry - Gimbal

24. 24 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Bluetooth Beacons Digital End-Caps in the Physical World Ad Networks

25. 25 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Ad Networks In-App advertising

26. 26 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training In-App advertising

27. 27 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training In-App advertising 1 minute away

28. 28 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • A marketplace • Content management • Campaign management • Sales people • Sales portal • Bidding, limits, targeting • Rationing / scarcity Ad Networks Components

29. 29 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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.”

30. 30 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training A Dilemma for Venue Owners Indoor Maps

31. 31 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training End user Apple/Google Venue Owner Brands Highly 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 transactions No analytics or control Unless they unite and take a stand will need to accept terms offered Adding indoor fidelity to Google/Apple Maps http://blog.statlerconsulting.com/2014/09/02/the-airport-and-mall-indoor-location-dilemma/

32. 32 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Planning, Executing, Tracking and Analyzing Campaign Management

33. 33 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Planning, Executing, Tracking and Analyzing Campaign Management Examples: • Lighthouse • Urban Airship • Rover

34. 34 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Campaign Management - Execution parameters • Targeting • Frequency Throttling • Triggering − Signal Strength − Dwell Time − Entrance / Exit

42. 42 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Urban Airship - Mobile audience segmentation PREFERENCES Drive app engagement with timely, relevant content delivered right to the home screen. BEHAVIORS Adapt messages based on how your audience engages with specific content. LOCATION Current and historical location reveals when and where users are most likely to act. DEVICES Use information about device type, time zones and more to fine-tune content.

43. 43 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Behavior Lifecycle Build profiles and deliver real-time messages Proximity iBeacon Dormant app Favorites Purchases Content views First open Preferences Systems Integration CRMeCommerce Preference center status level likes shoes shared content near beacon new user Urban Airship - Combine everything you know about your users

44. 44 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Urban Airship - Audience engagement solutions PUSH MESSAGES drive immediate action. ICON BADGES alert users when new content is available. APP IN-BOX deliver rich content at your customers’ convenience. LANDING PAGES get higher response rates with rich content that marketers control. DIGITAL WALLET never forgotten, always up- to-date.

45. 45 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Urban Airship - Example: Informed Beacon Targeting Drive 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

46. John Coombs Co-founder & CEO, Rover

47. 47 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Alternative Technologies One More Tool in the Tool Chest

48. 48 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 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?

49. 49 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Applications

50. 50 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Applications • Pre-installed apps − Maps − OS Wallets - Apple Pay − Bootstrap Issues − Passbook - Passjoy • Interesting Apps • URLs • Use Case Taxonomy

51. 51 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Payments • Apple Pay − What is it − Will it be successful − Implications • Cloud Payments − Perks Example

65. 65 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 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

66. 66 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training MCX / CurrentC Merchants Merchants unlikely to accept Apple Pay IN STORE

67. 67 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Stakeholder Beacons 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

68. 68 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Applications Cloud Payments Beacon with cloud based resolution Wallet

69. 69 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Applications Payments example – 20% share within 4 weeks

70. 70 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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 Applications Bootstrap issues http://www.thegauntlet.ca/story/mythic-bootstraps

71. 71 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Technologies to Drive Mass Adoption of iBeacons and Apple Pay Tom Benson, Co-founder, passjoy.com

72. 72 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 2 Very cool but

73. 73 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 3 How Do We Get Users?

74. 74 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 4 How Do We Get Users?

75. 75 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 5 How Do Macy’s Levis Pepsi Clorox Audi Sony Get Users?

76. 76 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 6 Give away Passbook cards 100x easier than Apps

77. 77 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 7 Easy Ad Platform 60 Million Audience

78. 78 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 8

79. 79 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 7 9 Pass joy

80. 80 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 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

82. 82 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Pass Card Displays Beacon Msg

83. 83 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Up to 10 Beacons per card & 10 GPS Locations, different messages

84. 84 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 8 4 Customers keep card for 9 months average

85. 85 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 85 Back Page Shoppers reference info Links for instant purchase

86. 86 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Passes Native Apps Built-in App Upgrade

87. 87 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Dashboard — New Ad

88. 88 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Select Audience by State/Zip

89. 89 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Add Beacons/GPS Locations

90. 90 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training System Generates Ads/Cards

92. 92 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 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

93. 93 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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?! Applications Virgin Atlantic – Heathrow – Estimote - Sita http://www.zdnet.com/uk/virgin-atlantic-tests-apples-ibeacon-at-heathrow-7000028987/

94. 94 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Applications • Personalized Digital Display − Generic segmentation − Duty free: Perfume for women, after-shave for men − Individualized Welcome Thella 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 Display

95. 95 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Applications Luggage tracking

96. 96 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • Check-in Passbook Ticket • Points-of-Interest • Ordering from seat • Merchandise offers Applications MLB.com At the ballpark - Gimbal

97. 97 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • Geofencing • Geo targeted push messaging • Points-of-Interest • Hyper local events • Offers Applications NFL - Gimbal

98. 98 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Mannequins http://www.ibtimes.co.uk/icon eme-puts-low-energy- bluetooth-beacons-into- mannequins-so-you-can- shop-go-1460724

100. 100 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Beacon App Taxonomy A 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

101. 101 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Use-cases

110. Use-cases

111. 111 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Application Selection Criteria Application

112. 112 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Strategy

113. 113 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Strategy Overview • An organization specific process • Questions • AltBeacon • Cost of beacons • Things to worry about • Panel Discussion

114. 114 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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)? Strategy Questions

115. 117 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 1. Marinate 2. Decide Critical Success Factors 3. Simplify steps 4. Think through details / issues / costs 5. Test 6. Analyze 7. Refine 8. Repeat until done Strategy How - do we get there?

116. 118 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • The OS is in Control • The ecosystem is critical • Therefore Apple/Google are in control Strategy Assumptions

117. 119 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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 wrong Market Scenarios

118. 120 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 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."

119. 121 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Altbeacon.org

121. 123 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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 AltBeacon http://blog.statlerconsulting.com/2014/08/08/altbeacon-a-standard-to-be-avoided/

122. The Panel

123. 125 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • 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

124. 126 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training 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?

125. 127 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training • Orientation & Market • Core Concepts − Standards − The Operating System − Signal and Placement − Beacons − Analytics • Networks • Alternative Technologies • Applications • Strategy Summary

126. 128 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training Feedback • More of • Continue • Less • Suggestions

127. 129 Statler Consulting @stevestatler www.statlerconsulting.com/#beacon-training www.statlerconsulting.com Thank you Follow us on: www.facebook.com/CauseBasedSol @stevestatler

An Introduction to Bluetooth Beacon Technology - Part 2

An Introduction to Bluetooth Beacon Technology - Part 2

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