Near field communication (NFC) allows contactless data transfer between mobile devices and NFC tags through electromagnetic radio fields. NFC tags contain antennas that can transmit up to 1MB of data when tapped by an NFC enabled device. The use of NFC is growing for purposes like mobile payments, accessing information by tapping smart posters and product packaging, and other marketing opportunities. By 2014, 20% of mobile phones were projected to have NFC capabilities, and mobile payment transactions using NFC were estimated to reach $74 billion by 2015.

1. What is NFC?
Near field communication (NFC) is a wireless technology
that allows the transfer of data between a mobile device
and a transmission device (an NFC tag). It can open a web
page or app, give instructions to authorise a payment
or even open a hotel room door.

2. How NFC works
NFC tags are small discs of plastic that contain a printed
circuit with an antennae. The NFC tag draws a small
amount of power from an NFC-enabled device when
you tap it. It can transfer up to 1MB of data and can be
standalone or embedded in other objects
(eg posters, product packaging).

3. The rise and rise of NFC
By 2014, 20% of mobile handsets sold
will have NFC technology

4. The number of NFC-enabled
handsets sold in 2011
(IMS research)
35 million

5. How much payment transactions
will be worth by 2015
(Juniper)
$74bn

6. What are the marketing opportunities?
NFC allows customers to make a purchase, receive targeted offers,
but also share experiences and view customised rich media.
They just tap the mobile device on a poster, magazine ad
or any other transmission device to activate the NFC technology.
So what could NFC marketing look like in the near future?

7. A day in the life of an
NFC-enabled consumer…

8. John loves his mobile

10. NFC technology is opening up a whole new
channel for him to connect with brands.

12. John uses his mobile
to download a driving
game app that was
embedded into a car
brand’s direct mailer.

13. He gets to play a free
game and the brand
captures his data.
Who knows he may
even book a test drive?

15. On the way to the
shops, John walks
past a poster that
catches his eye.

16. It’s advertising the film he’s been
meaning to see but hasn’t got round
to it. He taps the poster to book tickets
at his local cinema for tonight.

18. John’s seen an ad on the telly
about a new coffee brand
and recognises the product
on the shelves.

19. He wants to know a bit more
about it – is it ethically produced,
are there any offers? So he taps
the packaging.

20. John is paying for his coffee and a few
other things he’s run out of at home.
No need to fumble around for his
loyalty card, as it’s on his mobile.

22. John takes a stroll through the
shopping centre on his way back
home and goes past his favourite
clothing store. The window display
is advertising discounts this week.

23. In the shop, he sees a pair of designer jeans
he likes the look of so he taps the price tag.

25. John stops at a bar for a quick drink.
He runs into his old flatmate who’s a
bit of a gamer.

26. He taps his friend’s mobile to
share the driving game he got
this morning. The car brand gets
a social recommend, collects data
and may have a new customer.

27. John heads to his local
pizza parlour, which
has a two for one offer.

30. John and his girlfriend arrive at the cinema,
pick up the cinema tickets and find out that
there’s a deal on popcorn so they buy some
on the way in.

31. Trying to find a cab after the
film will be a pain so he taps
a call to action on a poster to
book their cab for later.

32. John tidies up his apps and emails on his mobile.
He looks at his day’s transactions and files stuff
away, changes his opt-in and preferences.
He also looks at offers from other brands and
decides whether or not to subscribe to them.