location gets personal - ibeacons, nfc and apple pay - ona 2014
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iBeacons (and more)
ONA Chicago Sat.Sept 27, 2014
11:30 - 12:30 Chicago Ballroom VIII
Damon Kiesow @dkiesow #ona14ib
iBeacons (and more)
Disintermediation
Bluetooth, BLE, NFC
Location
Payments
Opportunities Advertising Circulation Membership Content
Disintermediation (oversimplified)
Advertising subsidized journalism
Ad networks > local media :: Internet > intermediaries
Disruption
Advertisers go direct*
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*To slightly amend Dave Winer ca. 2009 bit.ly/gsWDIN
Newspaper Association of America March 2012
Disruption 2015
Mobile Ads
Browsing Data
Location History
Retargeting
Store Visit
Transaction
Disruption 2015
Mobile Ads
Browsing Data
Location History
Retargeting
Store Visit
Transaction
Question
“If you participate in the movement that undermines your way of doing
business, you have some say in how it evolves.”
!
— Dave Winer
A quick review
What is Bluetooth?
A protocol for short-range data exchange via radio frequency
Created by Ericsson in 1994
Intended to connect PCs and mobile phones (replacing RS-232 serial cables)
UHF radio frequencies (2.4 GHz)
Same as garage door opener, baby monitor, cordless phone, WiFi (802.11g), Microwave ovens
Why ‘Bluetooth’?
Named for a King of Denmark and Norway (c. 935) Harald “Bluetooth” Gormsson who united the kingdoms
What is Bluetooth Low Energy?
Bluetooth 4.0 (BLE)
Same tech, lower power consumption
Supported by most recent mobile phones
Designed for health, fitness, wearables
And NFC is?
Near Field Communications
Similarities to RFID
Low or no-powered tags
Range of 20cm
Popular in Android phones (and iPhone 6)
Used in contact-less payment systems
Can bootstrap other channels such as WiFi, BLE
The important stuff
Apple Pay - Wave your iPhone or Apple Watch to pay
Combines BLE and NFC
Location will be tied to iBeacons
Apple’s fee is being paid by the bank, not merchants
Apple’s next big thing
Merges digital and physical payments
Reduce credit card fraud and hacking (hopefully)
Allows better behavioral tracking
And ad re-targeting
Further disintermediates traditional media
iBeacons
A brand name marketed by Apple
Based on the BLE standard
Works on Android
Proximity ranging
Micro-location
Personalized alerts
Connection to retail point of sale for payments
(estimote beacon)
credit: estimote
credit: Apple
credit: Macy’s
credit: MLB
iBeacons
Why not use GPS?
iBeacons
Work indoors
Decentralized
Tied to specific apps
More accurate
Not ‘absolute’ location
Points of Interest
The basics
Each beacon sends:
A unique identifier
A Major address
A Minor address
For example:
UUID: B9407F30-F5F8-466E-AFF9-25556B57FE6D
Major: 123
Minor: 001
The basics}UUID: B9417F30-F5F8-463E-AFE9-22546B57FE6C
Major: 123 Major: 456 Major: 789
Minor: 001
Minor: 002
Minor: 001
Minor: 002
Minor: 001
Minor: 002
Store 1 Store 2 Store 3
Opportunity
How many apps will people use?
Will merchants form networks?
Which vendor will own the ‘last mile’?
What needs can we serve for readers?
What needs can we serve for local merchants?
AdvertisingCost-per-click $
Ad connected to retailer iBeacon
Tracks ad click & saves coupon or other offer to wallet
Ad
Retargeting $$
Advertising
Proximity to beacon re-triggers advertising
Ad
Cost-per-alert $$
Advertising
Alert
Proximity to beacon triggers alert
Cost-per-engagement $$$
AdvertisingRetrieves offer & presents it to customer.
Offer
Cost-per-acquisition $$$$
Advertising
App confirms transaction and/or authenticates offer
Pay
Circulation
OpenNews
CirculationPrint on demandLocal offers
Offer
Print on demand
MembershipLocal discounts Payments
CirculationDigital Access
News
ContentPoints of Interest
News
Scavenger hunt
Contests / Marketing
Find
Caveats
Proximity
Battery Life
Apple/Google/Amazon/Paypal
Will beacons go self-serve or programmatic
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Caveats
GPS works just fine in many cases
People will turn BLE off
Alert fatigue
Still an emerging tech
Thanks
Damon Kiesow @dkiesow
damon@kiesow.net dkiesow@mcclatchyinteractive.com
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