The Beacon Technology Boom
When Apple announced iBeacon in 2013, it seemed as if consumers would be slow to catch on to this innovative smart phone feature. According to a recent Forbes article, BI Intelligence reporting indicates that beacons would be driving $44 billion in retail sales. Last month, Apple and IBM announced that they are teaming up to create a host of new apps that incorporate retail analytics and iBeacons. Do not feel ashamed if you are asking yourself, "What in the world is beacon technology?" This article has been created to explain the basic principles of beacon technology.
What is beacon technology?
"The term iBeacon and Beacon are often used interchangeably. iBeacon is the name for Apple’s technology standard, which allows Mobile Apps (running on both iOS and Android devices) to listen for signals from beacons in the physical world and react accordingly. In essence, iBeacon technology allows Mobile Apps to understand their position on a micro-local scale, and deliver hyper-contextual content to users based on location. The underlying communication technology is Bluetooth Low Energy." - http://www.ibeacon.com/what-is-ibeacon-a-guide-to-beacons/
What is Bluetooth Low Energy (BLE)?
It is a wireless personal area network that can transmit small packets of data over short distances. BLE has the ability to transmit data while saving and consuming energy while keeping a similar communication range as its predecessor, the original Bluetooth. BLE is 60-80% cheaper than classic Bluetooth. It is the perfect solution for transferring small periodic bits of data.
How does BLE communicate with iBeacon. Well, there is an extremely technical answer to that question, but here is the "beacon for dummies" version. When the two communicate, the advertising packet consists of four pieces of information: the brand (ex. Coca Cola), the store (ex. Target on Main Street), the location in the store (ex. the front of the store), and the proximity from the beacon.
So what's the big deal? Why is beacon technology booming?
Since iBeacon can pinpoint exactly where a customer is located in a retail store, this provides retailers with a chance to advertise, send coupons, and communicate with the customer as they walk through the store. iBeacon.com says that this will provide "extremely meaningful" and "highly contextual information" to consumers within a brick and mortar environment.
"This technology should bring about a paradigm shift in the way brands communicate with consumers. iBeacon provides a digital extension into the physical world. We’re excited to see where iBeacon technology goes in the next few years." - http://www.ibeacon.com/what-is-ibeacon-a-guide-to-beacons/
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