The gap between online and offline interaction is closing with the use of micro-location services. So what’s the best micro-location technology? We compare: iBeacon, BLE, Bluetooth, NFC, QR, Wi-Fi and GPS for use in micro-location and proximity engagement scenarios for retail, entertainment and destination marketing.

1. What’s the best micro-location
technology?
We compare: iBeacon, BLE, Bluetooth, NFC, QR,
Wi-Fi and GPS.
pete.williams@localz.co
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2. The gap between
online and offline
interaction is closing
with the use of
micro-location
services.
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3. 🌎
Traditional smartphone location
services are accurate to +/- 30 meters
New smartphone services
provide accuracy under 1 meter
That’s micro-location
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4. iBeacon
Apple’s take on Bluetooth Low Energy. Thanks to protocol hackers, the standard is now
supported on select Android devices. Although iBeacon works on top of and has all the
capabilities of BLE, the standard provides additional features that make it more attractive for
use in proximity sensitive smartphone apps.
Advantages:
• frictionless experience – the technology is intuitive, fast and simple
• native OS integration – special libraries make for more robust application integration
• the wow factor – one of the few technologies that has consumers saying “that’s cool”
Disadvantages:
• iOS centric – premium experience for iOS, limited on other platforms
• requires an app – consumer must install a smartphone app
• active powered – beacons must be actively powered by a battery or a/c
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5. Bluetooth: Smart / Low Energy
v4.0 / BLE
The new version of Bluetooth that allows for proximity sensing and alerting. Supported by a
range of smartphone platforms including: iOS, Android, Windows Phone and BlackBerry. Unlike
the older Bluetooth standard, BLE is ultra low power meaning the service can be left enabled at
all times with little impact to smartphone battery consumption.
Advantages:
• multiple use cases – flexible enough to support promotion, payment and tracking events
• position triangulation – supports highly accurate position tracking – less than 1 meter
• widespread standard – supported on most smartphones
Disadvantages:
• requires an app – consumer must install a smartphone app
• active powered – beacons must be actively powered by a battery or a/c
• consumer awareness – the technology is relatively new and not widely known
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6. Bluetooth v1-2
A version of Bluetooth that has been around since the 90’s and primary used for pairing mobile
phone accessories. This older technology was also used (in limited use cases) for providing
information and coupons in smart posters. One of the more popular uses was providing movie
trailers at cinemas via Bluetooth enabled movie posters.
Advantages:
• widespread standard – supported on most phones, including older feature phones
• established – the first technology for proximity push advertising and marketing
Disadvantages:
• poor customer experience – consumer needed to pair with posters, a complex process
• power drain – the older standard is a drain on phone batteries
• unreliable - the pairing technology often failed with multiple users in area
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7. QR (Quick Response) codes
QR codes have been with us since the mid 90’s. Originally designed for industrial use, QR made
it’s way into consumer use a decade ago. Unlike traditional barcodes, QR codes can be quickly
read when scanned from any direction and work with smartphones and older feature phones.
Whilst many have pronounced the death of QR, reports from US marketers indicated a rise in
scan use by 38% year over year between 2012 and 2013. Granted, this rise was observed in
traditional print media such as magazine advertisements.
Advantages:
• low cost of deployment – same as traditional printing costs
• greatest potential service base – they work with nearly any phone with a camera
• well recognised – studies indicate that consumers are receptive to QR in the right context
Disadvantages:
• high friction experience – customers have to take out their smartphone, launch a scanning application,
then scan a code which takes them to an offer or landing page
• low information density – QR holds a limited amount of information
• an eye sore – in retail use, the codes are bit of an eye sore that take up valuable advertising space
© 2014 Localz Pty Ltd

8. Near Field Communication (NFC)
NFC is (relatively) big in Japan. The technology has been built into phones since the early
2000’s and can be use for transit ticketing, vending machine purchases and small goods
purchases.
NFC is built into most premium Android and Windows mobile phones but is not currently
supported by Apple in iOS devices. NFC tags can be used to automatically trigger events like:
direction to web sites, and content, providing contact information like telephone numbers.
Advantages:
• low friction experience – users only need to tap a tag
• lower cost of deployment – typically $0.10 each in bulk
• widespread use in payments – nearly 60% of qualified transactions are via NFC in Australia
Disadvantages:
• lack of iOS support – iOS has over a 40% phone share in Australia
• security issues – hackers have used rogue NFC stickers to compromise phones in mass
• short range – no ability to triangulate position or interact beyond 5cm
© 2014 Localz Pty Ltd

9. Wi-Fi (802.11)
Through specialised software, it’s possible to use Wi-Fi as a micro-location service. Accuracy
will vary depending on Wi-Fi base station configuration. The technology can work as a standalone location service or used in conjunction with GPS for increased location accuracy.
Advantages:
• common standard – most consumers have Wi-Fi enabled smartphones and mapping services can
leverage Wi-Fi data for more-precise tracking
• existing infrastructure – many facilities have public Wi-Fi installed
• passive detection – users do not require a native application
Disadvantages:
• power hungry – Wi-Fi consumes smartphone power and base stations require a/c power
• complex fit-out – for micro-location use, multiple base stations are needed, each requiring power and
ethernet wiring - expensive electrician services
• accuracy – accuracy beyond 1 meter is an even more complex installation, limiting potential use cases
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10. Global Positioning Service (GPS)
GPS powers the majority of location experiences on smartphones. Nearly every smartphone
includes GPS functionality, though its use indoors is tempered due to poor signal reception.
Location precision and accuracy can be augmented by other micro-location technology such as
Wi-Fi and BLE.
Advantages:
• widespread standard – supported on most smartphones
• lowest cost – cost is limited to defining geographic bounds
• highly integrated – the technology can easily be integrated to web and native smartphone apps
Disadvantages:
• lacks precision and accuracy – unable to uses cases that require reliable resolution under 10 meters
• Does not work well indoors – GPS requires line of sight to the sky
• power hungry – GPS consumes significant power, forcing most users to disable the service by default
© 2014 Localz Pty Ltd

12. So which is the best?
We propose that no one technology trumps all others.
The best is what works for the customer – simple, frictionless yet ubiquitous. An effective
micro-location strategy will require a combination of these complimentary technologies.
See more at www.localz.co/blog
Or email: pete.williams at localz dot co
© 2014 Localz Pty Ltd