iBeacon is a new technology developed by Apple that uses Bluetooth low energy to enable proximity-based interactions between mobile devices and physical locations. It allows apps to push notifications and other data to users when they are near beacons placed throughout physical spaces like stores. Many retailers and venues are implementing iBeacon to improve customer experiences by connecting digital and physical worlds. While iBeacon was created by Apple, competing technologies are also being developed to bring similar proximity-based capabilities to Android and other platforms.

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presented by Marc Jensen
April 2014
Trending the Future:
Apple iBeacon

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Who is this guy?

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I’m Chief Technology
Officer + Managing Partner
at space150

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We use technology to create
amazing experiences that connect
people to brands

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Our mission is awesome:
Destroy Convention
to Create Demand
(see more at space150.com)

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Okay, let’s talk iBeacon

7. What is iBeacon?

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iBeacon is a new technology
created by Apple to
enhance location
services for mobile devices.
image source: Apple

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iBeacon was created to enable your
phone to do things when you’re
close to a specific location
image source: Apple

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iBeacon was created to enable your
phone to do things when you’re
close to a specific location
like alert you when you’re in front of this Apple Store
image source: Apple

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So, why did Apple create iBeacon?

12. Shopping habits and
consumer expectations are
changing quickly

13. Shopping isn’t what it used to be
sources: New York Times, Business Insider, USA Today

14. Retail foot traffic is
down
Foot traffic is down 50% in three
years from 2010 to 2013.
!
Online commerce is having a large and
permanent impact on the traditional
retail environment.
!
!
!
!
!
!
source: Wall Street Journal

15. E-commerce continues
to grow
Digital sales are growing at the
expense of offline sales.
!
“growth is coming from existing
online shoppers who are spending
more time and money - and in a
wider variety of categories - online”
!
!
!
!
!
source: Mashabl

16. Change brings
opportunity
In all this change, there are bright
spots. While traditional malls struggle,
the Mall of America is set to double in
size, as they focus on the destination
and the experience.
!
Omnichannel retail serves the
wants of consumers that expect a
brand to be present across all physical
and digital channels.
sources: Fortune / CNN Money, Forbes

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iBeacon was created to
connect physical to digital
image source: Apple

18. Let’s take a closer look at iBeacon
and Location Services

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iBeacon was announced and
released as part of iOS 7
image source: Apple

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The primary goal of iBeacon is to
enhance location services
image source: Apple

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You may ask: “Isn’t my phone
great at determining my
current location?”
image source: Google

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Yes and no, depending on
what you’re trying to do

23. Location Accuracy
We have incredible maps and
services on our phones, but
they’re limited by the existing
technology they’re built on.
!
When I took this screenshot, I was
actually in the building across the
street, on the second floor.
image source: Apple

24. Precision
It’s not Foursquare’s fault, but they
just don’t know exactly where i’m at.
!
I’m in the space150 Minneapolis
office, and it shows “90 ft away”.
!
Current technology is great for
finding a building, but
problematic after that.
image source: Foursquare

25. Location Tech
The accuracy of this is about 30ft
(10m), much worse in buildings
and urban areas.
!
This location is determined by a
combination of GPS, Wi-Fi and Cell
Triangulation.
image source: Google

26. Let’s look at a real world
example

27. Apple Store App
Apple has rolled out iBeacon to all of
it’s 250+ US stores.
!
If you have the latest Apple Store
app installed, you can experience
this yourself by going to a
physical Apple Store.
!
image source: Apple

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When you’re close to an Apple store,
you’ll see a push notification that serves
two main purposes:
!
Bring the proximity of the store to
your attention
Show you what’s possible with the
combination of the mobile app and the
physical store
image sources: Apple

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mobile payments genius appointments events + workshops
image sources: Apple

30. Specific Location
Once you’re in the store, specific
areas will trigger notifications:
specials, new products, or anything
else they’d like to highlight about the
area you’re in.
image sources: Apple

31. Digital Payment
You can easily pay for products using
your iTunes account and existing
payment information.
!
This is a powerful way for Apple
to leverage existing digital
payment methods.
image source: Apple

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Apple is using iBeacon to connect
physical to digital, streamlining the
existing in-store experience
image source: Apple

33. What are the important details of
iBeacon?

34. Confidential and Proprietary space150 ©2013image source: Icomoon
iBeacon aims to improve location-
based services through proximity.

35. Confidential and Proprietary space150 ©2013image source: Icomoon
Proximity and location are
different, and the difference is key

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Mobile location is represented as a
point and a radius of accuracy
image source: Google

37. Confidential and Proprietary space150 ©2013image source: Icomoon
Proximity is knowing that you’re close
to a specific physical location

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Example: I’m in front
of this coffee shop
image source: Colonial Warehouse

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Example: I’m at this display
image source: Martin Patrick 3

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iBeacon is not strictly
limited to Apple devices
image source: Estimote

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this is an Estimote Beacon
image source: Estimote
iBeacon is not strictly
limited to Apple devices

42. How does iBeacon work?

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iBeacon is built on Bluetooth, the
common wireless technology
image source: Bluetooth SIG

44. Bluetooth Low Energy
iBeacon is built using Bluetooth Low
Energy, part of the latest version of
Bluetooth hardware (version 4.0)
!
BLE is intended to use very little
power, and has a realistic range
of about 150 to 200 feet.
image source: Bluetooth SIG

45. Basic Example
You need a transmitter and a
receiver. When a receiver detects a
transmitter nearby, you can trigger an
event.
!
The transmitter is a beacon, and
it’s continuously transmitting a signal.
!
The receiver is an app on your
phone that is looking for a beacon.transmitter
(“beacon”)
receiver
(iPhone app)
image source: Icomoon

46. Proximity to a location
far
beacon
receiver
phone
near
beacon
immediate
beacon
With iBeacon, you can initiate actions that are appropriate for
being in the “immediate vicinity,” “near,” or “far” from the
beacon. These distances are not fixed, but are thresholds. Your specific
needs, environment and hardware will determine this.
image source: Icomoon

47. Multiple Beacons
You can use multiple beacons in
a single environment to trigger
location specific events.
!
When an event is triggered, you can be
confident about the proximity to the
location.
!
In this example, beacons are at the
entrance, in a department, and at the
checkout counter, each can trigger
appropriate events.
entrance
checkout
department
image source: Icomoon

48. App Required
iBeacon is opt-in. Users must
have an app installed.
!
iBeacon functionality can easily be
integrated into existing apps.
image sources: Apple

49. Beacons
Beacons are designed to be
small, use little power, and last
for a long time on small button
batteries.
!
On the left is an Estimote beacon,
they’re compatible with iBeacon, are
$99 for 3, and last 1-2 years on the
built-in battery.

50. Exposed
They’re simple inside - it’s basic
bluetooth hardware and a battery. The
actual devices themselves are built
from simple components.

51. Who is using iBeacon, and what
are some uses for them?

52. Retail + Grocery
Safeway and Giant Eagle grocery are
partnering with InMarket to roll out
iBeacon to 200 stores.
image source: Techcrunch

53. Retail + Fashion
Shopkick plans to bring iBeacon to
100 American Eagle stores.
image source: Techcrunch

54. Sports + Entertainment
Major League Baseball is bringing
iBeacon technology to more than 20
ballparks for opening day of the
season 2014.
image source: Major League Baseball

55. Sports + Entertainment
The NBA and the Golden State
Warriors are using iBeacon to target
iPhone users. When guests arrive
at the top of the escalators for
the “nosebleed” seats, they’re
immediately presented with an
offer to upgrade their seat.
image source: Apple Insider

56. Automatic
Automatic is a bluetooth device that
connects to your car to monitor and
improve your driving (it’s like Fitbit
for your car).
!
Automatic updated their device
to operate as a beacon, opening the
possibility for automatic payments
(toll booths, etc).
image source: Automatic

57. Enhanced, more
automated service
Many apps benefit from location
information. As an app creator, think
about how this technology could
benefit your app.
!
It used to be that you could determine
that an app user was near your
building - now we can know that a
guest is in your store, or at a
specific location
image sources: Google, Icomoon

58. Hospitality
Restaurants that offer ordering and
pickup could improve the experience
by notifying guest services
automatically when customers
actually arrive, streamlining the
pickup experience.
image sources: Chipotle, Panera

59. Starbucks
Starbucks will be adding the
ability to pre-order your coffee
for pickup.
!
iBeacon would be the perfect
technology to let the staff know a
customer really has arrived and is in
the store, and can also help initiate
mobile payments, further simplifying
that process.
image sources: Engadget, Starbucks

60. Any competition? Yes.

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Apple first saw the potential of this
tech, and created iBeacon. Other
companies are creating alternatives.
image source: Qualcomm

62. Android Support
Radius Networks is creating
iBeacon hardware and software
that allows Android to leverage very
similar functionality.
!
The same exact hardware can be used
for Apple iBeacon and custom Android
(and other) platforms, simultaneously.
image source: Qualcomm

63. Qualcomm
Qualcomm launched it’s own
version called Gimbal. The devices
can be configured to work with Apple’s
iBeacon, it’s own system, or work in
other custom scenarios, across iOS
and Android platforms.
image source: Qualcomm

64. Hospitality
Starwood is extending their
existing mobile apps to allow
hotel guests to open their room
doors with Bluetooth powered
phones and apps.
!
They’re testing in two locations now,
and plan to support iOS and Android
devices.
image source: CNN

65. Paypal Beacon
Paypal is launching the Paypal
Beacon.
!
Using the same Bluetooth Low Energy
technology, they’re building a custom
version specific to their needs, to
speed checkout at physical stores that
accept PayPal. The proximity of
beacons can help improve security and
simplify the user experience.
image source: Paypal

66. Let’s Summarize

67. Confidential and Proprietary space150 ©2013image source: Apple
iBeacon is a technology created
by Apple that brings proximity
awareness to mobile devices

68. Confidential and Proprietary space150 ©2013image source: Bluetooth SIG
iBeacon is built on standard
Bluetooth technology

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Competing and custom
alternatives are emerging
image credit: Qualcomm

70. Confidential and Proprietary space150 ©2013sources: Gigaom, Accenture, Washington Post, MITSloan
Consumers increasingly
expect seamless digital to
physical experiences

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Physical and digital are no longer
separate: it’s one big experience
image sources: Apple

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The concept is simple, but the
details are very important
image source: Icomoon

73. http://www.space150.com/work
Reach out, we’d love to talk details
!
Marc Jensen, Chief Technology Office + Managing Partner
space150 Minneapolis, New York, Los Angeles
!
marc.jensen@space150.com