Millennials rate personalisation and convenience as keys to a great shopping experience. Shopping platforms are continuously improving their services by enhancing the level of relevance and personalisation using various methods. Beacon-based proximity marketing is one of the most effective methods that has proven to bring effective engagement.
The biggest advantage of beacons is contextual marketing. This contextual approach has made proximity marketing 16 times more effective than Google though it costs less. Also, the advent of Bluetooth 5 is expected to largely boost the effectiveness of beacon-based proximity marketing owing to the enhanced broadcasting capacity.
Location based marketing technologies collect real-time customer data which can help business owners understand the in-store behaviour of every visitor. Reputed advertising businesses like Extreme marketing systems that use beacon technology proclaim that proximity marketing drives engagement better than Google Ads.
Social media marketing channels, such as Facebook and Twitter ads witness click-through rates (CTR) lower than that of beacon campaigns. In 2018, the average CTR of Facebook and twitter ads is 0.119% and 1-3% respectively. But, the average CTR of beacon campaign ads is 3-4%. Also, the well-executed beacon campaigns have proven to yield a CTR of 12-15%!
Overall, the average CTR of beacon based marketing campaigns is approximately 80 times the CTR of display ads, across all advertisement formats and placements (0.05%)