So what is Proximity Marketing you ask? Well, Wikipedia defines it as..."the localized wireless distribution of advertising content associated with a particular place. Transmissions can be received by individuals in that location who wish to receive them and have the necessary equipment to do so". Well at a high level, that is correct but they make it sound so dull.

Proximity marketing is a relatively new medium used to promote establishments via advertising and marketing businesses by sending content to consumers' mobile phones. The technology is thru Bluetooth and almost all phones have it these days. Bluetooth is a wireless transmission frequency used to send content short distances. The beauty of using this method is that no mobile provider is needed to push content to mobile phones.

So how does this all work? Retailers, Shopping Malls, venues with high traffic place Bluetooth wireless transmitters in certain areas where they would like to push content. They are connected to a Bluetooth server either via cables or thru Wi-Fi. An advertisement such as a text message or a video or digital coupon is created and sent to Bluetooth transmitters.

When a shopper with the Bluetooth feature turned on and comes in range of the transmitter, they get sent a request to receive ad content. If they accept the advertisement is sent to them. If they deny, then nothing gets sent. Once they receive a coupon for example, they can take it to the retailer show them the coupon and redeem it right there! The bar coding system the retailer uses can scan the bar code and provide the consumer with the savings right there. The consumer can also send the coupon to another person so they can redeem it as well.

There has been a big debate about advertising in the mobile medium. Some people think that ad content should not be sent to mobile phones as it may be considered an invasion of privacy. Mobile phones are considered the most personal device used today since they send and receive calls and messages only to those who share their number. Others think that the next big thing will be mobile marketing and early indications show that this may very well be the case by the way ring tones, music and iPhone applications are being developed and downloaded.

Why implement Proximity Marketing? Well, if you're a retailer, you want to place relevant ads into the hands of shoppers who are right outside your establishment. If you're a shopping mall manager you want to implement proximity marketing services to attract retailers and also increase foot traffic.

Once consumers know that there is a proximity marketing infrastructure set up and they can get money saving coupons to them in their hands then they will want to come back and spread the word to their friends and families. If you own and operate or manage other venues like restaurants, bars and entertainment parks, then this is provides an opportunity to send specials, one time notices, announcements to your patrons and increase traffic and revenue that particular day.

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