location gets personal - ibeacons, nfc and apple pay - ona 2014

41
iBeacons (and more) ONA Chicago Sat.Sept 27, 2014 11:30 - 12:30 Chicago Ballroom VIII

Upload: damon-kiesow

Post on 28-Nov-2014

970 views

Category:

Mobile


1 download

DESCRIPTION

Pre-conference draft of an ONA14 session - delivered Saturday Sept 27 2014 in Chicago. http://ona14.journalists.org/sessions/ibeacons/ Hyper-accurate indoor location and the merging of digital and physical commerce is the next battleground for Apple, Google, Amazon and the other Internet giants. Apple has introduced this as iBeacons, but the underlying Bluetooth Low Energy (BLE) technology is open to anyone and works across hundreds of current mobile devices. We'll discuss business and development lessons about how to develop consumer and advertiser-focused products while this ecosystem is still in its infancy.

TRANSCRIPT

Page 1: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

iBeacons (and more)

ONA Chicago Sat.Sept 27, 2014

11:30 - 12:30 Chicago Ballroom VIII

Page 2: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Damon Kiesow @dkiesow #ona14ib

Page 3: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

iBeacons (and more)

Disintermediation

Bluetooth, BLE, NFC

Location

Payments

Opportunities Advertising Circulation Membership Content

Page 4: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Disintermediation (oversimplified)

Advertising subsidized journalism

Ad networks > local media :: Internet > intermediaries

Page 5: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Disruption

Advertisers go direct*

!

!

!

!

!

!

!

*To slightly amend Dave Winer ca. 2009 bit.ly/gsWDIN

Newspaper Association of America March 2012

Page 6: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Disruption 2015

Mobile Ads

Browsing Data

Location History

Retargeting

Store Visit

Transaction

Page 7: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Disruption 2015

Mobile Ads

Browsing Data

Location History

Retargeting

Store Visit

Transaction

Page 8: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Question

“If you participate in the movement that undermines your way of doing

business, you have some say in how it evolves.”

!

— Dave Winer

Page 9: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

A quick review

Page 10: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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

Page 11: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Why ‘Bluetooth’?

Named for a King of Denmark and Norway (c. 935) Harald “Bluetooth” Gormsson who united the kingdoms

Page 12: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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

Page 13: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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

Page 14: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

The important stuff

Page 15: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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

Page 16: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Merges digital and physical payments

Reduce credit card fraud and hacking (hopefully)

Allows better behavioral tracking

And ad re-targeting

Further disintermediates traditional media

Page 17: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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)

Page 18: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

credit: estimote

Page 19: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

credit: Apple

Page 20: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

credit: Macy’s

Page 21: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

credit: MLB

Page 22: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

iBeacons

Why not use GPS?

Page 23: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

iBeacons

Work indoors

Decentralized

Tied to specific apps

More accurate

Not ‘absolute’ location

Points of Interest

Page 24: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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

Page 25: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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

Page 26: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014
Page 27: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

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?

Page 28: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

AdvertisingCost-per-click $

Ad connected to retailer iBeacon

Tracks ad click & saves coupon or other offer to wallet

Ad

Page 29: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Retargeting $$

Advertising

Proximity to beacon re-triggers advertising

Ad

Page 30: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Cost-per-alert $$

Advertising

Alert

Proximity to beacon triggers alert

Page 31: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Cost-per-engagement $$$

AdvertisingRetrieves offer & presents it to customer.

Offer

Page 32: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Cost-per-acquisition $$$$

Advertising

App confirms transaction and/or authenticates offer

Pay

Page 33: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Circulation

OpenNews

Page 34: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

CirculationPrint on demandLocal offers

Offer

Print on demand

Page 35: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

MembershipLocal discounts Payments

Page 36: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

CirculationDigital Access

News

Page 37: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

ContentPoints of Interest

News

Page 38: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Scavenger hunt

Contests / Marketing

Find

Page 39: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Caveats

Proximity

Battery Life

Apple/Google/Amazon/Paypal

Will beacons go self-serve or programmatic

!

Page 40: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Caveats

GPS works just fine in many cases

People will turn BLE off

Alert fatigue

Still an emerging tech

Page 41: Location gets Personal - iBeacons, NFC and Apple Pay - ONA 2014

Thanks

Damon Kiesow @dkiesow

[email protected] [email protected]