an in-depth look at bluetooth marketing

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    An In-Depth Look at Bluetooth Marketing

    AN IN-DEPTH LOOK AT BLUETOOTH MARKETING

    a Whitepaper in 4 Parts

    written by Stephen Hodos,President of QuaBLUE

    1 S Main Street, Akron OH 44308+1(330)333-BLUE

    http://[email protected]

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    Introduction

    This white-paper provides a thorough conceptual overview of Bluetooth Marketing. Specific application of the provided analysis is pertinent for any

    business involved in direct-to-consumer marketing, especially as it occurs on premise. The application and utilization of Bluetooth Marketing technology is

    especially relevant in the case of areas with large amounts of foot-trafficincluding but not limited to:

    - Shopping-Centers- Arenas- Schools- Airports- Theaters- Bars & Clubs- Eateries- Fairgrounds- Entertainment Venues- Cities- Tourist Destinations

    Additional applications for Bluetooth Transmission Technologies provided byQuaBLUE may be discovered and deployed in any area where people gather.

    Other applications include:

    - Event Promotions- Roving/Transportation Applications- Non-profit, Awareness Initiatives- Political Campaigns- Municipal Applications, including use for Amber Alerts, Weather Bans, etc.

    The information contained in this Whitepaper has been collected after a year of industry analysis by our professional staff and is broken down into 4 Parts.

    Part 1 explains how and why Bluetooth may be used as a Marketing Medium.Part 2 explains the considerations that should go into deciding whether or notto deploy Bluetooth Marketing Technology.Part 3 provides a basic roadmap for early-stage adopters of Bluetooth Marketing Technology.Part 4 provides a list of principles and best-practices for utilization of

    Bluetooth Marketing Technology.Each Part may be read on it's own or in the context of the rest of the paper.

    This Whitepaper is meant to be a primer for those interested in learning abouthow Bluetooth Marketing technology may be adapted to an organizationsMarketing strategy.

    Sources are cited throughout the paper.

    For questions or for more information on QuaBLUE Proprietary Bluetooth Marketing Technologies, contact us at: [email protected]

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    http://www.quablue.com/contact_us.phphttp://www.quablue.com/contact_us.php
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    An In-Depth Look at Bluetooth Marketing

    Part 1: Why Bluetooth Works as a Marketing

    Medium

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    Part 1: Why Bluetooth Works as a Marketing Medium

    Contents

    I. Bluetooth Marketing General Overview 51. The Origin of Bluetooth 2. Bluetooth Applied to Marketing3. How it Works

    4. The Individual Experience of Downloading Content 6via Bluetooth

    II. Bluetooth Compared with SMS/text messaging 7

    III. The Business Case for Bluetooth Marketing 81. Individual Claimed Adoption Statistics for 2006-2008

    2. Web 2.0 Concepts Converge with Real-World 9Application

    3. Trackability for Real-Time ROI Analysis 104. Ad-Space Sale Opportunities

    IV. Industry Trends in Adoption of Mobile Marketing 11

    V. The Other Positive Effects of Advertising Qua BLUE 121. The Psychology of YES: What Opt-in Messaging Truly

    Delivers2. The Empowerment Principle: VIRAL AMPLIFICATION

    3. The Modern Value of a Green Solution:Communicating Your Company's Dedication to theElimination of Waste in the Digital Age - A Unique PR Identifier for Early-stage Adopters

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    I. Bluetooth Marketing: General Overview1. The Origin of Bluetooth In 1997, a business consortium including Nokia, Sony, Intel, Microsoft &Toshiba known as the Bluetooth Special Interest Group (the BluetoothSIG) established Bluetooth as a protocol for the wireless exchange of information. Named after the Norse King Blatand who united dissonantDanish tribes into a single kingdom, the name was adopted by theconsortium to symbolize the interoperability achieved in their collaboration.

    Today Bluetooth has become a leading standard as a cable-replacementtechnology, making it possible to wirelessly synch information betweenmobile-phones, laptops, smart-cars, etc. Best known for it's standardizeduse as a wireless headset solution, 95% of cell-phones sold in the U.S.today 1 come with Bluetooth as a standard feature. The global cellular handset market was estimated to represent just under 70% of the total

    Bluetooth equipment market in 2008. 2

    2. Bluetooth Applied to MarketingStandard Bluetooth Marketing Materials are appealing graphical, multimediaand/or interactive ads including digital coupons, videos, mp3's, etc.

    New and ongoing creative content enables businesses to keep their Bluetooth Marketing campaigns fresh so as to continuously engage the end-user.

    Instant Marketing Campaigns deployed via Bluetooth are easily tracked viaInternet-redemption coupon-codes, SMS text message codes or other forms of POS redemption. YouTube ready video ads can also be sent directly to on-

    premise patron cell-phones, making Bluetooth an ideal medium for real-worldSocial Networking.

    3. How it WorksBluetooth operates in the 2.4GHz frequency range. While most devices canonly transmit between Bluetooth 'nodes' at a distance of 10 meters, QuaBLUE

    Bluetooth Transmission Systems are fully-scalable from 1 meter (for limited,immediate area use) to 10 meters to 100 meters on up.

    Bluetooth is an optimal medium for the transmission of marketing andadvertising materials directly into the palms and pockets of patrons via their on-

    person third screen device, be it a mobile-phone, PDA, mp3 player, etc.

    When a QuaBLUE Bluetooth Transmitter detects a Bluetooth enabled devicewithin range, it sends a request to the device in the form of an on-screen 'pop-up.' If the user does not wish to accept she can simply deny the connection andwill not receive another request during the scheduled course of that campaign.If the user chooses to accept, the download will start instantly on most phones,though on some phones the standard Bluetooth pin of '0000' may be required.To view and/or redeem the materials the user would simply need to view themessage stored on her phone. If a user wants to stop any future transmissionrequests from arriving on her phone, she simply has to switch her phone's

    Bluetooth into 'Invisible Mode' or, alternatively, turn her Bluetooth off.

    1 ABI Research press release, September 20082 IMS Research Report, "The Worldwide Market for Bluetooth Technology 2008Edition"

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    4. The Individual Experience of Downloading Content via Bluetooth

    Step 1: Connect to the Server

    Step 2: Download Content

    Step 3: View/Redeem

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    II. Bluetooth compared with SMS/text messaging An Apples to Oranges Comparison

    Bluetooth and SMS text messaging both offer a wide variety of substantiallydifferent features and options when used as marketing tools.

    While both Bluetooth and SMS-text present methods for getting information

    onto cellular phones, both methods can be used in tandem to get the maximumimpact out of a Mobile Marketing campaign. Bluetooth makes it possible tosend full video, multimedia, interactive ads to a captive audience for the sake of 'Viral Amplification' (much the way YouTube works, except that Bluetooth works in the physical environment.) SMS text is more-often used tocommunicate with potential or ongoing patrons so as to move them to act on a"call-now", "text-now" or event announcement notification. Thus, Bluetooth and SMS-text serve two completely seperate purposes.

    Bluetooth Marketing works by sending full-color digital coupons and/or multi-media/interactive ads to the cell-phones of on-location patrons or other nearby foot-traffic in proximity to a place of business with no per-msg feesand no phone-numbers required at any point during the deployment of a campaign!

    SMS text Messaging is typically used with a Common Carrier Short Code(CSC) service to send and/or receive subscription service notifications and/or event announcements by prompting cell-phone users via Radio or Televisionadvertising.

    Below is a list comparing the features of Bluetooth to those of SMS text:

    Features Bluetooth SMS Txt MMS MessagingUSED TO IDENTIFY MOBILE

    PHONES WITHIN A GIVENPROXIMITY RANGE

    YES NO NO

    USED TO SEND VIDEO,PHOTOS, MP3'S,

    INTERACTIVE CONTENT,GAMES, ETC.

    YES NO YES

    USED TO PROVIDE SMSCODES FOR 'TEXT-BACK'

    REDEMPTIONYES YES YES

    USED TO PROVIDEUPCOMING EVENT

    INFORMATIONYES YES YES

    USED TO AUTO- CONFIGURECALENDAR DATES IN MOST

    PHONESYES NO YES

    USED TO AUTO-CONFIGURECONTACT INFO. IN MOST

    PHONESYES NO YES

    USED AS A WIDE-AREA

    BROADCASTANNOUNCEMENT YES YES YES

    USED AS A CALL TO ACTIONFOR ON-LOCATION CELL-

    PHONE USERSYES YES NO

    In most cases Bluetooth can be shown to far exceed the use-case scenariosavailable for standard SMS text-messaging campaigns - especially whendeployed on-premise where on-location or nearby patrons are located -making Bluetooth Marketing an opportunity at expanding on-premiseadvertising reach right into the pockets of on-premise patrons.

    Bluetooth digital ads are also fully renewable for ongoing customer reference

    making it a more effective, cost-saving mode of advertising for design, production and distribution of advertising literature.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    III. The Business Case for Bluetooth Marketing

    1. Individual Claimed Adoption Statistics for 2006-2008 3

    While there are still some individuals in markets around the world, includingthe U.S., who may not yet own Bluetooth enabled cell-phones ( and most of which exist out of the 18-32 age-range demographic typically targeted byBluetooth Marketing campaigns ), almost all cell-phones sold in the U.S.today are Bluetooth capable. The above pictograph is represenative of a polltaken by Millward Brown, published in 2008, which surveyed individuals as towhether or not they were aware of purchasing or owning a Bluetooth enabledcell-phone. The actual rates of claimed purchases are expected to grow through2010 as more-and-more individuals in the U.S. become aware of the

    Bluetooth that they have on their phone. No age requirements were stipulatedin the survey which means that the age-ranges varied between all age groups.

    While over 50% of people surveyed in the U.S. in 2008 were not aware of their phones Bluetooth capability, in March, 2009 U.S. awareness of Bluetooth asa Wireless Connectivity Technology was polled at 91%.

    "The US, at 91%, has caught up fully with Asia and Europe inoverall awareness of Bluetooth technology" - March, 2009. 4

    Though a great majority of individuals in the U.S. understand that Bluetooth is a Wireless Connectivity Protocol, if there is a hurdle to get over it is simply

    helping those same people understand that their phones ARE Bluetooth enabled.

    From our experience in the industry there is no doubt that individuals aged 18-32 are much more likely to BOTH know that they have Bluetooth on their cell-phones AND to know how to use it or to have previous experience using itin the past.

    Thus, the age-bracket most aware of the technology is also themost targetable age-bracket , making individuals in the U.S. aged 18-32a demographic grouping well-positioned for targeting with Bluetooth

    Instant Marketing materials.

    3 Bluetooth Brand Equity Study, Millward Brown, Dec. 20084 Sean Meckley, Bluetooth SIG Report, March 2009

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    2. Web 2.0 Concepts Converge with Real-World ApplicationIn 2004 a new media concept was born termed 'Web 2.0.' It's birthplace wasSan Francisco at the O'Reilly Media Web 2.0 Conference.

    In the words of Tim O'Reilly Web 2.0 has been defined as "the businessrevolution in the computer industry caused by the move to the Internet as a

    platform, and an attempt to understand the rules for success on that new platform."

    5

    In his opening statements at the conference O'Reilly clarified that Web 2.0results in the creation of an environment where " customers are building your business for you ."6

    Shortly thereafter the world saw an explosion of new .COM's built around themodel of user-generated content including Twitter, Facebook, YouTube, Diggand many others.

    One of the greatest elements inherent to the structure of Web 2.0 is that it is both content-driven AND that it allows for content to become instantly virallydisseminated based, primarily, on the popularity of the content.

    What This Means for Mobile Marketing

    Many of the principles at work in the Web 2.0 version of the internet (asopposed to the pre-2000 era of the internet) also apply to emerging mobile-technologies including mobile-based augmented reality applications, socialnetworking extensions, and, for that matter, Bluetooth - a powerful mediumcapable of connecting phsyically and geographically diverse groups of personsinstantaneously.

    While SMS/text messaging represents a great way to get out a call-to-action toa wide geographical area (for instance, to a tv networks' audience or to a

    student-body) Bluetooth is a much more flexible medium making the choice between the two a matter of purpose and extent. Both SMS/text and Bluetooth present mobile-based opportunities for the end-user to add comments, redeemcoupon-codes and pass-on information to friends if found to be engaging.

    Bluetooth thereby affords the end-user opportunities for interactive contentdownloads and has been the medium for an ongoing variety of Bluetooth supported Wireless games built to connect multiple mobile devices within

    proximity of each-other.

    Bluetooth offers the best existing opportunity for businesses to takeadvantage of the development of Web 2.0 concepts and principles in the real-world and in real-time for immediate results measurement and tracking. Inthe modern age of the Video-phone, a patron simply stepping within range of a

    business premise is an opportunity to send rich, targeted content to their mobile- phone.

    One of the key differentiating factors between Mobile Marketing (specifically Bluetooth Marketing) and Web 2.0 is the fact that while Web content can bedifficult to target geographically without the use of keywords, targeting mobile individuals within range of or on a business premise with rich and engaging content means that the business gets a captive audience for as long as the content plays ; the longer it plays, the greater the impression, the morelikely there will be a verbal (that is, conversational) element to the on-premise& off-premise viral explosion of the campaign.

    5 Tim O'Reilly (2006-12-10). "Web 2.0 Compact Definition: Trying Again".6 O'Reilly, Tim, and John Battelle. 2004. Opening Welcome: State of the Internet

    Industry. In . San Francisco, CA, October 5.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    3. Trackability for Real-Time ROI Analysis Bluetooth Marketing with QuaBLUE affords businesses a unique opportunityat tracking real-world individual interaction and real-time end-user experiencewith ongoing marketing campaigns.

    All of our systems are equipped with Statistical Feedback portals for quick-

    reference, on-the-fly. This means that a campaign can be launched frommultiple transmission points, at which point all cell-phones with their Bluetooth enabled and within range of each transmission point are thenlocated and a MAC address and Model/Brand for each phone is identified andstored. The final (most important) factor is instant awareness of the number of

    phones that have downloaded content from the Bluetooth Transmission Server for the course of a given campaign. This means that if within an hour of launching a preliminary campaign, results are not found to be optimal, a givencampaign might easily be immediately replaced until optimal results areachieved and without any of the costs that would otherwise be incurred inmid-campaign alteration using other media formats.

    REAL-TIME STATISTICAL FEEDBACK:

    All results can be exported in the form of a coma-delimitted file for easyimportation into an Excel Spreadsheet and for the sake of archiving data.

    Redemption codes can be offered for Viral dissemination of Marketing andAdvertising materials. Depending on the nature of the promotion, redemptioncan be achieved using any combination of

    -Web-based Coupon/Redemption Codes-Scannable or non-scannable POS redemption-SMS/text message redemption offered via Bluetooth (QuaBLUE

    short-code support also available)-Unique Audio &/or Video Coupons

    4. Ad-Space Sale Opportunities Bluetooth Marketing Technologies provided by QuaBLUE may be easilyconfigured for QuaBLUE General Administration Server Access to all devices.Per-transmitter permissions can be configured with Server-wide reportingfunctionality and administrative access granted on a remotely-hosted 24-hr

    basis congruent with updated client account & billing information, for instance,as would be necessary to service a stadium/arena.

    Ad-Space on a QuaBLUE Bluetooth Marketing system can be achieved byselling or auctioning time-blocks (based on standard area traffic estimates,Gross Rating Points, etc. ) to advertisers or by billing per-msg sent.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    IV. Industry Trends in Adoption of Mobile Marketing

    Entertainment Leads the Way in Adoptionfollowed closely by Automotive and Food

    "The entertainment and automotive industries areleading the adoption of mobile advertising, as 81% of

    L.A. survey respondents [planned] to run a mobilecampaign in 2008. In the areas most likely to run a

    mobile campaign, entertainment topped the list at 50%,

    with automotive second at 26%." 7

    -Mobile Marketing Association

    Wave8 and Mobile Ad Degree Business Surveys

    "From the second half of 2007 to May 2008 interest inmobile advertising [showed] tremendous

    growth.Similarly, the Mobile Ad Degree surveys found interest a bit later in 2008 at 64% in March and then

    rising to 81% in May." 8 -Wave8 and Mobile Ad Degree, San Francisco and Los Angeles

    7 http://www.mmaglobal.com/research/mobile-ad-degree-interest-mobile-advertising8 http://www.mmaglobal.com/research/mobile-ad-degree-interest-mobile-advertising

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    V. The Other Positive Effects of Advertising Qua BLUE

    1. The Psychology of YES: What Opt-in Messaging Truly Delivers

    Getting your customers to say "YES" to a connection request can be the firststep in developing a positive association between the immediately accessible

    customer brand experience and the final decision to act on a call to action. Themore engaging the end-user experience is at the time of the connection inviewing and/or using the downloaded information the more enthusiastic theindividual customer will be in responding to this new form of marketing. Thefirst "YES" will thereby pave the way to conversation, and many more YES's tocome from both the initial participant and their circle of influence.

    2. The Empowerment Principle: VIRAL AMPLIFICATION

    After an individual customer has downloaded Bluetooth Marketing materialsonto their cell-phone they can become the first point of contact in a long-stringof "pass it forward" (aka, VIRAL) messages.

    We call these indirect consequences of a direct-to-customer campaign theVIRAL AMPLIFICATION of your Bluetooth Marketing Materials.

    3. The Modern Value of a Green Solution:Communicating Your Company's Dedication to the Elimination of Waste inthe Digital Age - A Unique PR Identifier for Early-stage Adopters

    Where going Green achieves cost-savings and environmental and/or humanitarian benefits, going Green may also offer strategic market-placeadvantages over competitors. Similarly, when the substance behind a GreenInitiative is defined in effective communications with both individual customersas well as with share-holders the consequential added-value of doing businesswith a Green company may be significantly improved: a fact which, whenrealized, will yield better customer relations (i.e., sales & revenue) and better stock values for a positive correlation between cost-savings and increases inrevenue.

    In the case of Bluetooth Marketing, the Green Solution is readily andimmediately available upon every on-site customer experience that occursthroughout the course of a Bluetooth Marketing campaign.

    This is significant since individual customers are not likely to take recurringnotice of the efficiency of a typical business' energy distribution system, datastorage management system or any variety of other ' behind the scenes ' costsavings.

    Rather, in a very real sense Bluetooth Marketing Technology delivers a Green flier into the pocket of the individual customer reminding them upon everyinteraction with that Green flier that the place of business that sent it to them is

    being eco-conscious.

    In fact, in some cities and states (including Florida, for instance) it is illegal to perform printed flier drops due to the waste and eye-sore that occurs.QuaBLUE Bluetooth Marketing Technology is the Green Solution that keeps

    on giving back to both the individual customer, the advertising businesses andeven to the share-holders.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    Part 2: Key Factors in Deciding to Adopt

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    An In-Depth Look at Bluetooth Marketing

    Part 2: Key Factors in Deciding to Adopt

    Contents

    Introduction to Part 2 15

    I. The Third Screen: Capitalizing on On-Premise Opportunity 16Step 1: Determining Viability based on Nearby

    Foot-trafficStep 2: Case Study References and Collection of

    Demographic InformationStep 3: Understanding the Demographics

    & Achieving Awareness of Campaign

    II. Cost Effectiveness 171. Cost Comparison: Print2. Cost Comparison: Billboards

    3. Supplanting the Cost of Regularly 18Redeploying Other On-Premise Signage

    III. Creative Resources 191. In-House Capabilities2. Out-Sourced Capabilities via QuaBLUE

    IV. Immediate and Long-term ROI Considerations 201. The INITIAL Cost of HW as the Greatest Cost In

    Deploying Bluetooth & Yields a Fast Return2. Strategic Integration into Ongoing Marketing

    Strategy & Vision

    V. Formats for Communication 211. Digital Coupons2. Digital Videos3. Interactive Animation &/or Tutorials4. Video Games5. Maps6. Calendar &/or Contact Info

    VI. Redemption Opportunities/Systems 221. "On-Sight" Redemption

    2. POS Redemption Systems3. Web-Based Redemption Systems4. SMS/Text Message Redemption

    VII. Immediately Proposed Campaign Concepts: 23Formulating a Strategy for Initial Implementation

    VIII. Staff Education: Training in the Real-World Application 24of Web 2.0 Principles within the Physical Environment

    1. Ongoing Staff Training & Consultation Services2. Applying the Lessons of Web 2.03. A New Model for Increasing ROI4. Keeping Up with the Pace of the Future

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    Introduction to Part 2

    As detailed in Part 1 of this Whitepaper, Bluetooth Marketing is becoming anincreasingly attractive medium for interacting with customers.

    While the Third Screen (i.e., the cell-phone screen) poses a variety of newopportunities, those opportunities naturally come with their own challenges.

    Part 2 of this Whitepaper details both the challenges and the opportunitieswhich pave the way to an understanding of where and when Bluetooth Marketing Technology becomes both effective and profitable for use.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    I. The Third Screen: Capitalizing on On-PremiseOpportunity

    Step 1: Determining Viability based on Nearby Foot-TrafficUnderstanding where and when an opportunity exists is the first step in recognizinga potential application for the utilization of Bluetooth Marketing Technology. An

    assessment of the foot traffic and/or other forms of idle traffic within range of agiven point-of-connection (i.e., transmission point) is the most fundamental factor in determining the viability of an application.

    In most cases where there is enough demographic information already available toestimate the number of Bluetooth enabled phones within range of a givenlocation, recognizing an opportunity is as simple as referencing prior case studies.In certain circumstances it is advised to test run a Bluetooth campaign so as todetermine the actual number of Bluetooth enabled phones in a given area.

    Step 2: Case-Study References and Collection of Demographic InformationWhile an estimated 95% of cell-phones sold in the U.S. today come equipped with

    Bluetooth , we have found that anywhere from 10-20% of people with Bluetooth enabled cell-phones leave their Bluetooth turned on AND visible - meaning thatno additional signage is required in order to connect with these phones!

    After that 10-20% have received the request from our transmitter to connect to their cell-phone, we have found that anywhere from 10-50% of people who received therequest then opted-in to receive the message.

    These numbers reflect the performance of past "blind" campaigns (campaigns runwithout signage instructing people to "Turn On Your Bluetooth ".)

    When running ongoing campaigns simply hanging additional signage or providingother audio/visual calls-to-action will drive these numbers skyward.

    Case in Point: if you have a stadium that seats 30,000 and it is filled to capacity,at least 3,000 people will have their Bluetooth turned on and a minimum of 300will accept the connection request - these VERY conservative numbers reflect our

    findings when running 100% "BLIND" campaigns.

    With the right signage and/or on-premise promotions calling people to "Turn OnYour Bluetooth " the number of devices detected will significantly increase whilethe ratio between devices detected and 'opt-in' downloads will also show dramaticimprovement.

    In a stadium deployment, for instance, multiple transmitters would be managed on afully redundant mesh network. This means that once an individual has downloadeda campaign all of the transmitters on the network will recognize that the user has

    'opted-in' and will not send that specific phone another connection request until anew campaign has begun.

    Step 3: Understanding Demographics & Achieiving Campaign AwarenessWhile we have found that individuals aged 18-32 (and younger) are more likely tohave their Bluetooth enabled & to understand how to use it with little-to-noinstruction, we have also found that when provided with appropriate instructionsindividuals aged 32-55 are just as likely, if not more likely to redeem a digitalcoupon that they've downloaded onto their phone qua Blue.

    The more relevant a specific campaign is (assuming a non-blind campaign promoted by on-premise signage/audio/video), the higher the individual participation rates. Trust and comfort level are also big factors. If an individualtrusts the source of the transmission, they will be much more likely to participatethen if they don't know where the connection request is coming from.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    II. Cost Effectiveness

    1. Cost Comparison: Print

    When compared with the use of digital coupons or fliers, printed fliers arecostly and ineffective - especially since printed fliers are often disregarded or

    forgotton (or even altogether avoided) Bluetooth is, on the other hand, a 100%renewable and cost-saving mechanism for automating management, deliveryand ROI analysis of your on-premise marketing.

    Print Costs:10,000 Full Color, 1 Sided 5.5"x8.5" Brochures: $550.00 or 5.5c/each

    versus10,000 Full Color, Digital Brochures/Coupons: $32.00 or .32c each 9

    Savings if using Bluetooth :5.18c Savings Total/each unit OR $518.00 Savings/Campaign OR

    94% Cost Savings (Total)

    New Opportunities to Deliver Advertising Into People's Pockets

    In many cases, Bluetooth affords entirely new opportunities at connecting with patrons. While print campaigns are, in certain circumstances, too costly to perform, the cost comparison above shows that where a print campaign wasexpensive or even unfeasible due to high cost of print (plus distribution!) thefinal cost of creation, administration, distribution and full results-reporting of aQuaBLUE Bluetooth Marketing Campaign means greater ROI at anexceedingly low fraction of the cost of running traditional print campaigns!Hence, new advertising opportunities will be discovered where take-homeadvertising would have simply been too costly prior to the existence of

    Bluetooth Marketing Technology.

    2. Cost Comparison: Billboards

    In the world of Billboard &/or Broadcast Advertising, Impressions are deliveredusing Gross Rating Points. As far as we're concerned that's about as good asguessing! We deliver real results analysis based on connection statistics usingthe same philosophy that has made Google's approach to advertising a modernsuccess, namely: dollars should be measured by results and if real results can't be matched to real dollars than there's probably a real reason for thediscrepancy!

    GRP Impression Avg Costs (for Billboards in NE Ohio):$3-$5 per Impression

    versus25c - $1.00 per Bluetooth Digital Impression/Connection 10

    Savings if using Bluetooth :$2.75 - $4.75 per Impression OR

    91% -95%

    9 if performed by QuaBLUE - price includes upload to one transmitter w/ redesign of existing template and final reporting on campaign upon campaign expiration

    10 applies when per-phone, per-campaign connection rates are charged to client byQuaBLUE using existing or leased QuaBLUE equipment/network

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    3. Supplanting the Cost of Regularly Redeploying Other On-PremiseSignage (including static image, digital, etc.)

    Be it on-premise vinyl banners, printed posters, upright signage or windowgraphics, simply instructing a person within viewing range to "Turn on Your

    Bluetooth " can easily provide a cost savings as the campaign itself provides

    for its own longevity. Instead of hanging a new banner on the wall every time anew promotion is launched, a single banner that says "Turn on Your Bluetooth " might easily cut costs so that the only promotion that requiresconstant updating is the least-costly to implement: Bluetooth . Instead of reprinting costly wall-banners every time a new promotion is initiated, a single"Turn on Your Bluetooth " banner may easily provide the call-to-actionnecessary to provide the actual information used to drive your customer to thedesired action - thus providing yet another incentive to participate in the

    Bluetooth campaign. This also applies to digital billboard signage - simplytelling people to "Turn on Your Bluetooth " only requires a single up-front

    production cost and thereby eliminates the time and resources that wouldotherwise go into developing custom videography for per-campaign needs.

    Example Banners: Originally Installed Downtown Akron, OH

    3'x4' Horizontal Instructional

    8'x24' Vertical Billboard

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    III. Creative Resources

    1. In House CapabilitiesA company with an in-house Marketing Department that is dedicated tomanaging and constantly revising ongoing marketing campaigns willsignificantly decrease costs in time allocated to planning, implementing (that is,distributing) and tracking campaigns whenever and wherever traditional mediamanagement is strategically supplanted by the administration and creativeapplication of QuaBLUE Bluetooth Marketing Technologies.

    In the event that QuaBLUE is hired by a client to develop a solution, adesignated allotment of consultation services are included with anytransmission and/or management packages purchased so that full utilization of QuaBLUE technologies may be achieved by each and every client regardless of whether or not the client has the resources to effectively utilize the technologywith in-house management resources. In so doing we aid our clients indetermining the most cost-effective method for managing their QuaBLUE

    Bluetooth Marketing Solution.2. Out-sourced Capabilities via QuaBLUE : SMB ApplicationsWith every initial package that we design or sell through our corporateheadquarters we also include a FREE Bluetooth Digital Coupon Template. Thistemplate is valued at a minimum of $125 in design costs (assuming no custom

    photography or videography required.) Any redesign of this template byQuaBLUE costs only $12/redesign. After that we let our customers decide if they wish to manage the upload and then the reporting on their own, whereupload and reporting each cost $12 if performed by QuaBLUE. We offer thisflexibility in management options since we recognize that many of our clientsmay have technical staff capable of managing specific campaign details thoughthey may not have sufficient marketing staff to perform the recurring design of campaigns (or vice versa.)

    For the first 90 days following an Installation we provide 100% pay-to-play, on-demand services this means that we allow our clients and their in-housemanagement teams to see campaign results and understand the collaboration

    process before solidifying terms for a fixed retainer.

    After 90 days from the date of Installation we require a minimum retainer of $200/transmitter for all campaign management services including redesign,remote administration (campaign upload), &/or per-campaign reporting. Thisensures that our clients are provided with a standard time-frame by which todetermine their own capacity to perform administrative functions in-house.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    IV. Immediate and Long-term ROI Considerations

    1. The INITIAL Cost of HW as the Greatest Cost In deploying Bluetooth & Yields a Fast Return

    Assuming highest-cost of hardware for a deployment involving one stationary

    Bluetooth transmitter, standard costs for the initial deployment of a singletransmitter solution (as per some small-business applications) involve:

    - Hardware & Installation- Hosting- Creative Design- Remote Managment (upload + reporting)

    The fewer customers being reached by a single transmitter, the greater the netgain must be from any given campaign and/or redemption offered in thatcampaign.

    For instance, a Tire Store may offer a deal on the installation of 4 new tires to100 people per week where a 3% return will yield 3 new customers per week.

    A stadium, for that matter, seating 30,000 with a Bluetooth deploymentregularly providing for the sale of 300 hotdogs per week is also yielding a 3%return.

    In both situations the ROI comes within months if hardware alone is factored as the primary up-front cost. Campaign Implementation is a per-client variable- if a clients Bluetooth campaigns are constantly changing (and assumingmanagement by QuaBLUE) costs will be higher and ROI will take longer thanif Bluetooth campaigns are more regularly scheduled and/or less-frequentlychanged (and assuming managment by client.)

    If 4 new tires at $60/tire is making a Tire Store client 10% profit/return, 3 newclients/week would result in a $72/week ROI with a maximum of 7 monthslapsed till initial stage ROI is achieved as weighed against initial investment of an estimated $2K for one transmitter.

    Similarly, a stadium might make a 6% return selling $5 hotdogs with an averageof 300 hotdogs sold/week. At $1,500.00 in sales/week & a $90/week

    profit/return the stadium would make their ROI in under 5 months! Thisexample is provided merely as an illustration since most of a Stadiumsmeasurable ROI will likely come from Advertisers.

    These are considered to be VERY conservative numbers as they are based on anestimated 3% of client redemptions and presumably low-profit margins!

    2. Strategic Integration into Ongoing Marketing Strategy & Vision

    The initial period of deployment will likely prove incredible net gains for anearly-adopter, as referenced above. The intrigue involved in redeeming an offer while the utilization of Bluetooth Marketing is still new in the market-place willlikely aid in driving early-stage participation. O ngoing strategic integration of thetechnology into the marketing strategy of a given firm will optimally situateearly adopters for ongoing increases in ROI due to deployment efficiencies (i.e.,

    process streamlining) and creative proficiency in leveraging Bluetooth , as wellas the maximization of ongoing impact in interactive media wherever the same

    principles apply. Thus, preparing early-adopters for future adaptations totechnological innovation and market-place results measurement.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    V. Formats for Communication

    Just as Television is a medium for a variety of programming and just as theinternet is a medium for a variety of media formats, so Bluetooth is a mediumfor the transmission and communication of a similar variety of media formats,which have been broken down into basic categories as listed below:

    1. Digital Coupons

    Be it a static-image coupon meant for "On-Sight" redemption, Bar-codescanning with an optical scanner or even simple area awareness (for instance,an Amber Alert message) digital coupons can provide all of the benefits of traditional coupons and/or printed fliers at a fraction of the cost.

    -Design is simplified as the ad is not a full-sized flier but is created for display on a smaller cell-phone screen,

    -Distribution is automated,-The campaign provides digital referenceable take-home materials andis thus guaranteed to be more effective than, for instance, standard

    print advertising (where best practices are followed)

    2. Digital Videos

    Whether produced specifically for Bluetooth or for YouTube (or both) digitalvideo produced for the cell-phone is naturally less-expensive and moreaffordable than videography produced for the big-screen, since compressionratios and pixel-counts often play a factor in determining the final cost of video

    production. That said, Bluetooth affords an opportunity at killing many birdswith one stone: YouTube + Bluetooth + potentially even T.V. ready videoyields instant cost-savings alongside immediate results measurement and acaptive audience precisely where Generation Y is most captive: on their Cell-

    phones!

    3. Interactive Animations &/or Tutorials

    Build an Avatar for communicating your brands unique identity. Animate themotions of your Avatars' on-screen performance. Interact with your customersvia an animated overview of a specific product or experience. Whatever thecase, QuaBLUE can aid your organization in helping you reach out to your customers in a way that is both visually and conceptually engaging.

    4. Video Games

    Make your end-user's experience both provocative and memorable by providinggames that stimulate the senses that you want to stimulate. Create passion,conviction, envy or enthusiasm. Video-games are a great method by which tostimulate emotional interaction and may be easily downloaded via Bluetooth .

    5. Maps

    Provide your patrons with Interactive Java Maps that point the way to thenearest point-of-destination, hotspot, ride, or other point-of-interest.

    6. Calendar &/or Contact Info

    Provide nearby foot-traffic with contact-details, business-card info. and even

    calendar information immediately applied to their cell-phones' calendar makingfor a great immediate and even accidental future point of reference on the partof your customer.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    VI. Redemption Opportunities/Systems

    1. "On-Sight" Redemption (Likely More Viable for Smaller Venues)

    While at least potentially blunt and inaccurate when put to use by larger organizations, QuaBLUE has experience running various limited time offersallowing individuals to "show an ad" to a POS representative for the sake of simple visual redemption. This is easily the lowest cost of implementation and,in the case of smaller businesses (and, potentially, at times, in the case of larger organizations) may be considered the quickest and easiest way to track the sumtotal amount of redemptions without requiring costly integration with a givenPOS system.

    This redemption style is termed the "On-Sight" redemption method since noverifiable proof is required of the POS employee other than a keypressindicating that a particular offer was received "On-Sight" from a customer.

    2. POS Redemption Systems (2D Bar-Code Optical Scanners)

    2D Bar-codes are quickly becoming an industry standard in mobile advertising.

    Using an Optical Scanner, a 2D Bar-code may easily be scanned into a POSsystem for instant and verifiable redemption - be it per-customer or per-campaign. Hence, 2D Bar-codes have already begun to represent the future of large-scale mobile redemption applications.

    3. Web-Based Redemption Systems

    By simply sending a web-site/url embedded in a message to a phone, a

    redemption code may thereby be easily and quickly redeemed using Wifi or Cellphone Provider Internet Access to complete the redemption online.

    These codes may be provided on a per-phone or per-campaign basis.

    Tracking redemptions is as simple as maintaining a database with allredemption information annotated and stored for ongoing reference.

    Information such as emails, demographics, cell-phone numbers, etc. may bemaintained using Web-Based Redemption Methods.

    4. SMS/Text Message Redemption

    A call-to-action prompting a user to text a code to a Short Code (i.e., 68687)may also be provided within the body of a Bluetooth Campaign . The cost of running such a campaign would be determined by whether a specific CommonShort Code (CSC) was required by the client or whether a multi-use (shared-cost) Short Code might be preferred for the sake of cost-savings.

    SMS/Text Message Redemption services are most valuable when the attainmentof specific geographic information and/or demographic information is a priority,since the collection of carrier exchange data and/or specific carrier demographicinformation may be referenced upon the receipt of specific information from the

    participating 'texter'.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    VII. Immediately Proposed Campaign Concepts:Formulating a Strategy for Initial Implementation

    The Initial Stages of Implementation

    The roll-out stages of an early adoption deployment will require multipleinitial factors be put to consideration:1. Awareness (telling people to "Turn on Your Bluetooth")2. Instructions on Using and Redeeming Downloaded Information3. Simplicity of Initial Campaigns being Delivered to Cell-phones4. Fresh, Engaging, Relevant Campaigns: Creating Added-Value Promotions5. Redemption6. Tracking Results

    When all of these factors are taken into consideration a comprehensivecampaign may be managed and delivered to individual customers for acomplete brand experience that is both engaging and valuable.

    The format to be used for the initial campaign (digital coupon, video, game,etc.) can be any of the available options. A video or game is best utilized whena strong brand experience and ongoing customer interaction (post-receipt, off-

    premise interaction) is sought.

    An immediate call to action is most affordable when put into the format of adigital flier, promotion or coupon calling for an immediately relevant action onthe part of the participant.

    A Strategic Suggestion Regarding Early-Stage Adoption

    Don't purchase any technology without knowing

    1. what kind of campaign you plan to deploy (regarding format),2. with whom you want to connect (your target demographic), and 3. what results you're seeking (the actual call-to-action)

    While such a suggestion may seem both obvious and at once unnecessary wehave found that the ease-of-management involved in deploying a Bluetooth Marketing Campaign as well as the general excitement at the power of

    Bluetooth Marketing Technolog y may at times preclude a certain potential for presumption amongst early-stage adopters that simply because they are utilizingthis incredibly effective technology it will be effective no matter the endssought or the creative strategy employed in the design of relevant campaigns.For this reason alone we emphasize the fact that the technology is simply aconduit for the prompt and efficient communication of information. The proper and effective utilization of the technology will alone result in whatever degreeof effectiveness is achieved.

    The Point: Don't be afraid to Deploy - but Don't be afraid to be constantlylearning from every deployment for the sake of ongoing increases in ROI.Know who you want to connect with, why you want to connect with them, andwhat added value you seek to provide them with. Without these keyingredients, the greatest effort may be put into a Bluetooth M arketing campaign with minimal, sub-par results.

    Remember: both the Technology and the ideas/campaigns are 100% scalable.Once results have been measured it's easy to reapply the principles used on a

    bigger and more cohesive scale for scaling up to bigger results and greater ROI.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    VIII. Staff Education: Training in the Real-WorldApplication of Web 2.0 Principles within the Physical

    Environment

    1. Ongoing Staff Training & Consultation Services Provided by QuaBLUE

    In Recognition of the Challenges faced by early-adopters in the implementationof Bluetooth Marketing Technology and Campaigns, we believe that customer service, support and relationship development are key to the proper utilizationof the medium.

    For this reason, we believe that the best model for success is one where theindustry experts (such as QuaBLUE) partner with the early-adopters to manageand maintain ongoing improvements in campaign ROI.

    Understanding per-client corporate values, internal organization and individualstaff motivations should play a key role in establishing the procedures necessaryto the ongoing and integrated success of a given deployment.

    2. Applying the Lessons of Web 2.0

    While Web 2.0 is a modern phenomenon still being realized, the lessons that wecan take away from the Social Web (Web 2.0) experience are invaluable when itcomes to effectively engaging individual customers.

    What are those lessons? Simply put, we learn to personalize, make thingsrelevant, and to track real results on an individual basis. We learn that if andwhen we can deploy a simple campaign effectively, the viral dispersion (i.e.,viral amplification) of that same campaign becomes a matter of individualcustomer preference.

    If the experience is truly engaging and impresses the individual customer theywon't hesitate to pass it on.

    3. A New Model for Increasing ROI

    In the world of modern marketing and throughout it's foreseeable future,learning lessons today will be critical to the effective utilization of newmarketing technologies tomorrow.

    Thus, while right now it makes sense to apply the lessons that we're learningfrom the Social Web to the real-world customer experience, the lessons learnedat this stage in the game from the application of those principles will providegolden opportunities at fusing real-world marketing strategy with on and off-web sage.

    4. Keeping Up with the Pace of the Future

    Where and when Bluetooth Marketing Technology is properly utilized it will pave the groundwork for the future of on-premise interactive customer experience. Going beyond simply watching flashing pictures on a big-screen,content will become more and more personalized and individuals will get moreand more picky, making relevance and excercise of best-practices of primaryimportance.

    Bluetooth provides great opportunities to get ahead of the game at an earlystage!

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    Part 3: A Roadmap for Adoption

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    Part 3: A Roadmap for Adoption

    Contents

    I. 7 Step Roadmap to Adoption of Bluetooth Marketing Technology 27

    II. Steps Explained 28STEP 1: Analysis of Available DataSTEP 2: What is the Radius of the Area

    Requiring Bluetooth TransmissionCoverage?

    STEP 3: Determine the HW Requirementsfor the 1st Phase of Deployment

    STEP 4: Design both Strategy & Creative 29for Initial Campaign

    STEP 5: Determine Early-stage ManagementResources and Allocate Accordingly

    STEP 6: Institute Protocols for MeasuringOngoing Campaign Performance &Ensuring Best-Ppractices

    STEP 7: Deploy, Measure Results & thenBegin Planning for Phase 2 Rollout

    III. Starting on the Quest 301. Contact QuaBLUE2. Dialogue and Relationship Development

    via QuaBLUE Consultation Services

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    27

    STEP 1STEP 1a: Analyze Available Demographic InformationSTEP 1b: Perform On-Premise Case-Study with Live Campaign,No-signageSTEP 1c (optional): Perform On-Premise Case-Study w/ LiveCampaign + Signage Instructing foot traffic to Turn on Your Bluetooth

    I. - 7 Step Roadmap toAdoption of Bl uetoothMarketing Technology

    Question: Were the results of the demographic analyses and/or CaseStudies strong enough to merit an investment (in expectation of ROI?)

    IF NO: Then Consider whether revisitation of future case-studyopportunities may be worth later

    investigation

    IF YES, STEP 2: Determine DesiredLocation(s) Surface Area &Number of transmittersRequired for optimal coverage

    Step 3 : Determine the hwRequirements for 1s t PhaseDeployment within allocated budget

    STEP 4 : Develop engaging campaign& locate opportunities for Increasingawareness of Bluetooth campaign

    STEP 6: Institute protocols for

    ongoing campaign performancereview and utilization of best-practices

    STEP 5: Determine early-stageManagement Resourcesand Strategy

    STEP 7a : DEPLOY!STEP 7b : Measure SuccessSTEP 7c : Plan for Phase 2 Roll-out

    IF YES: Then setDate for future

    Case study

    Go Back toSTEP 1

    IF NO:Understand

    Issues &

    recordFindings for future

    consideration

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    II. Steps Explained

    STEP 1: Analysis of Available data

    In deploying a first-time on-premise Case Study, the primary purpose is todetermine how many Bluetooth enabled phones come within proximity of a

    given location.

    A second, though significantly less important goal may be to determine the ratio between individual phones-detected and actual end-user opt-in messagedownloads. Unless future blind campaigns are planned as a primary method of

    Bluetooth Marketing outreach strategy, finding this download ratio will likelyhave little effect on the success of future campaigns since downloads andawareness will be externally prompted.

    It may even be possible to test redemption as a third test-factor based onexisting POS facilities, though it is not advised that redemption tracking beincluded an an initial case-study due, primarily, to increased cost of implementation.

    Question: Upon Analysis is there potential for ROI?

    Answer: Depending upon the scope of a given application, a single redemption(for instance, if used in the purchase of an automobile) may be all that'snecessary to prove ROI potential. Though getting to the stage of testingredeemable promotions comes after confirming that a target audience exists inclose enough proximity to the premise who either A) has their Bluetooth already turned on and is prepared to download the information without anyexternal prompting or B) is close enough to the point of transmission that theymay be effectively prompted to participate in the campaign.

    STEP 2: What is the radius of the area(s) requiring Bluetooth transmissioncoverage?

    This is easily enough determined based upon a consideration of both budgetconstraints and optimal wide-area coverage opportunities.

    While there's not necessarily any practical reason to roll-out a deployment in phases, it is often easier to recoup ROI with a phased strategy for deployment.

    Each transmitter being capable of a variety of transmission radii, the actual site

    survey may occur at the same time that the initial Case Study (STEP 1) is beingcarried out. Later tests may be required to confirm estimates as to how manytransmitters are required to cover a given area.

    STEP 3: Determine the HW requirements for the 1st phase of deployment

    After performing both the case-study (so as to confirm the viability of the proposed application) and the site-survey (to determine the minimum and alsothe optimal number of transmitters needed to cover a given area) the next step isto put together a Hardware Package with all of the pieces essential to therelevant Phase of Implementation being discussed.

    Before putting together this package, an estimated budget should be provided by the prospective or existing client for the sake of calculating how 'optimallyrobust'' the initial solution will be.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    STEP 4: Design both Strategy and Creative for Initial Campaign

    Throughout the entire course of the dialogue between vendor and client,thorough attention should be paid to understanding the clients' existingmarketing strategy, initiatives and on-premise approach to marketing wherebyan initial campaign concept can be developed which integrates well into the

    existing brand &/or marketing strategy of the client.The Creative process is about solving on-premise needs with engagingadvertisements that capture the attention and get the desired results while alsospurring on a powerful viral 'buzz'.

    STEP 5: Determine Early-stage Management Resources and AllocateAccordingly

    After deciding on an initial Creative campaign, the next step is determining whowill manage the campaign, when it will launch, what terms will be offered tothe individual customer, when it will end, who will perform the creative, who

    will upload it to the system, who will track the results and how often will theresults be tracked.

    While this may seem like a lot of details, the decision making process isactually as simple as analyzing resources and identifying who is best preparedto provide the above listed services: client or vendor.

    STEP 6: Institute Protocols for Ongoing Campaign Performance &Utilization of Best-Practices

    Proceduralizing the elements of early-stage creative development, campaigndeployment and all other relevant aspects of the ongoing strategy provides aframework for internal accountability. While quality control, decision making,

    partner or advertising sponsor involvement and ongoing campaign performancemeasurement all require certain procedures be in place for consistent utilizationof Bluetooth Marketing Technology and campaigns, procedures also make theisolation of useful and/or non-useful practices easier to identify throughout the

    process of both results measurement and progressive goal coordination.

    Once again, as complicated as these procedures may sound, our guide to BestPractices simplifies the development of procedures for the sake of streamliningthe decision making process and creating a limber marketing strategy capable of rapid adjustment to shifts in the perceptions of your target audience.

    STEP 7: Deploy, Measure Results & then Begin Planning for Phase 2Rollout.

    This is where all of the accrued data, case studies, targeting strategy andcreative campaigns get put to the test.

    The entire process starting at STEP 1 and ending with STEP 7 begins and endswith the measurement of results.

    It is a cyclical process whereby constant progressive improvements in bothstrategy and effectiveness should yield greater returns and higher margins,

    while at once streamlining the very act of engaging the 7 STEP process -making the process an activity which should get easier to use every time andwhich may even eventually become a natural force of habit.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    III. Starting on the Quest

    1. Contact QuaBLUE

    For those interested in getting started on the quest to determine whether or not Bluetooth fits their needs, a simple phone call to QuaBLUE is all it takes toget setup with a team of consultants, project engineers and creative advisors toaid in determining the viability of a prospective Bluetooth Marketingapplication.

    2. Dialogue and Relationship Development via QuaBLUE ConsultationServices

    The actual Dialogue begins with a live product demonstration and tutorial onthe use of Bluetooth Technology.

    Then QuaBLUE will provide a needs assessment to discern where and how wecan serve you.

    After that the 7 STEP process begins and the Quest for a more effective, moreaffordable, result-oriented approach to marketing is under way!

    Contact us to today to start your Quest into the world of Bluetooth Marketing:[email protected]

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    http://www.quablue.com/contact_us.phphttp://www.quablue.com/contact_us.php
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    Part 4: Principles and Best-Practices

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    Part 4: Principles and Best-Practices

    Contents

    I. Principles 331. Simplify

    2. Enrich 34

    3. Be Honest 35

    4. Understand 36

    II. Best- Practices 371a. Driving Awareness1b. Communicating Relevance

    2. Delivering the goods 38

    3. Real-time Results Tracking 39

    4. Addressing Concerns with a FAQ 40

    5. Using Green to boost PR 41

    6. Discovering trends via surveys 42

    7. Campaign Time-Spans 43

    8.Psychologically Preparing theIndividual 44to Redeem the offer upon Receipt

    III. MMA Code of Conduct Guidelines 45

    IV. Frequently Asked Questions (FAQ) _____________________________ 46

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    I. Principles

    1. Simplify

    Just as Simplicity is important when communicating an Advertisement,Simplicity in framing Instructions is essential to netting the widest group of

    people possible.

    INSTRUCTIONS : 1. TURN ON YOUR Bluetooth 2. MAKE YOUR PHONE VISIBLE. 3. ENTER A PIN OF '0000' IF REQUESTED. 4. REDEEM THE AD FOUND IN YOUR MEDIA

    FOLDER.

    Any other special instructions can be communicated in the FAQ or anywhereelse that additional information may be located on-web or on-premise.

    Simply put, keep it simple.

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    2. Enrich

    Captivating an audience requires an understanding of who that target audienceis and what get's their attention. The novelty of a Bluetooth Delivery systemwon't last long if the ads and communications aren't engaging and enriching.

    For this reason, we strongly recommend utilizing the medium to the max withfresh ads (multimedia if possible) designed to attract attention and maintain it.If employed masterfully, a Bluetooth Marketing campaign has the power of infinite buzz potential.

    In generating that buzz both the value of the offer and the value of the contextin which that offer is being promoted are essential to achieving maximumimpact.

    An enriching ad is one that enriches both the receiver and the promoter. Itoffers value in expectation that an appreciation of value will be mutual.

    Think of Bluetooth as a Communication Portal as opposed to simply justan Advertising Medium - Bluetooth is a medium of exchange capable of enriching the relationship between an organization and it's constituentpatrons.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    3. Be Honest

    Make clear the full-extent of your intentions at every new opportunity toconnect with an individual customer.

    If they should download a Bluetooth ad for the sake of promotion that'sonly going to last an hour then communicate that fact!

    Whatever the case, find what works and then repeat the results consistently so

    that people have an ingrained response and understand why they need to keepup on the latest promotion.

    No bait and switch campaigns. Tell them why they should turn ontheir Bluetooth and then let them decide if they want to.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    II. Best-Practices

    1a. Driving Awareness

    In priming an audience to participate in a campaign, maximum exposure isessential to achieving maximum results, though it is also important to ensurethat signage is not placed outside of the range of the proximity within which

    Bluetooth delivery is possible. In most cases this range is a 100meter radiusfrom a given point of transmission though on-site testing may be required toconfirm that no obstructions or Radio Frequency Interference occurs.

    1b. Modularity of Signage

    The actual call to "Turn on Your Bluetooth" can have a fixed component("Turn on Your Bluetooth") and a dynamic component that changes based onthe changing of the promotions; for instance, if we are communicating that theBluetooth promotion is to receive "Today's Lunch Special" then this call canalso be fixed and the entire campaign is a single fixed banner (or digital/audioannouncement.) Otherwise, if the campaign is launched at a stadium, the call-to-action could be scripted for an announcer who would say "Turn on Your

    Bluetooth to receive a promotion from X advertiser."

    1b. Communicating Relevance

    Making a campaign relevant is the single most important factor in driving upconnection rates. Explaining to individual customers why they should turn their

    Bluetooth on, is the first step to engaging them in the interactive experience of

    downloading and then utilizing the Bluetooth content.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    2. Delivering the goods

    When performing a Bluetooth Marketing campaign, it is important to rise tothe expectations that you set. Delivering an effective message is the best way tocapitalize on the initial increase in awareness. For every positive interactionthat your customers have with Bluetooth Marketing campaigns, they becomethat much more likely to reengage Bluetooth Marketing on their return.

    Additionally, the buzz that occurs as a consequence of both the novelty of theexperience and the value of the campaign itself offers a golden opportunity atexplosive viral marketing when Bluetooth Marketing Technology is properlyutilized.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    3. Real-time Results Tracking

    Decide on the length of the campaign, then track the results upon campaigncompletion. Understand where and when the results spiked. Utilize thisinformation to better tailor your campaigns to the individual customers you'retargeting. When done right, the results should be ongoing improvements in themarginal value of every campaign. This means higher ratios of people withtheir Bluetooth turned on, higher ratios of people downloading content andhigher ratios of redemption.

    Win. Win. Win.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    4. Addressing concerns about privacy and/or SPAM with an available FAQ

    Posting an FAQ on a website is a great way to deter wrongful criticism. Many people fear that the technology is somehow an intrusion into their privacy. For this reason it is important to make it clear that all we offer is a newcommunication portal between business and the individual customer and that allcommunications are 100% Opt-In. If someone doesn't want to be bothered withon-screen requests to connect to their phone, they can simply turn off their

    Bluetooth or switch to invisible mode.

    The on-web posting of Terms and Conditions may also apply where those termshave not already been developed and posted for other overlapping media

    proliferation.

    An FAQ is provided at the end of this Whitepaper.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    5. Using Green to boost PR

    As an evolving protocol for communicating with the public, we recommendthat businesses interested in promoting the Green value of their Bluetooth Marketing Solution note the below facts:

    1. Bluetooth Marketing is a cost-saving solution2. Bluetooth Marketing is a paper replacement technology3. Bluetooth Marketing is 100% opt-in4. Bluetooth Marketing foregoes all of the standard hazards that are incurredin distribution of paper literature, including waste and litter

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    6. Discovering trends via surveys and customer interaction

    Understanding how your customers/patrons perceive the value of Bluetooth Marketing technology and campaigns is vital to the proper adoption of thetechnology to the market-place. It is recommended that customer surveys beincorporated into the Bluetooth Marketing program so that customer's can

    provide feedback on or off-web. With the help of on-premise management,collecting this information can provide vital intelligence for use in analyzing theelements of a campaign that contribute to it's success.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    7. Campaign time-spans - how to avoid becoming an annoyance

    It is highly recommended that our clients standardize the length of Bluetooth Marketing campaigns. If an individual customer comes to know that campaignsrun once every hour they will keep their Bluetooth on if they are interested inreceiving regular promotions.

    Remember, someone who has Opted-Out has done so only for the length of thatspecific campaign. As soon as another campaign begins, another request will

    be sent to their phone.

    Campaigns can be scheduled very flexibly. Regularity is important in achievinghigh customer satisfaction at par with high customer expectations.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    8. Psychologically Preparing the Individual to Redeem the offer uponReceipt (achieved in the communication of the initial promotion)

    Prior to receipt (and upon receipt) the individual customer should be preparedto act on the campaign's call-to-action.

    If the end-user is thoroughly intrigued by the novelty of this method of marketing, they will be more likely to respond positively and redeem the offer.

    If the end-user is made to appreciate the efficiency of Bluetooth as a methodof delivering promotions and those promotions remain both engaging andrespectful, they will be more likely to act as directed.

    Analysing, understanding and factoring-in the values of your individualcustomers is essential to gaining their enthusiastic participation in your

    Bluetooth Marketing program.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    III. MMA Code of Conduct Guidlines

    The Mobile Marketing Association Code of Conduct provides some basicIndustry guidelines for performing Mobile Marketing Campaigns. Whilethese guidelines were originally intended for use deploying SMS & MMScampaigns, they also apply to Bluetooth Marketing TechnologyDeployment.

    The MMA Code of Conduct can be Found Online at:http://mmaglobal.com/policies/code-of-conduct

    1. Notice Bluetooth Marketing campaigns require at least one-form of Notification and, potentially a second.

    The first is an on-premise call-to-action instructing individuals to "Turn on Your Bluetooth " and includes as much information as can be simply conveyed in

    order to help people understand how to download and redeem the promotionalmaterials from their cell-phone.

    The second is a listing of Terms & Conditions that may be as simple as a fewlines of disclaimer at the bottom of the Signage where the initial call to "Turnon Your Bluetooth " is provided. In some cases, a web-link may also be

    provided where terms and conditions are posted for online viewing.

    2. Choice & Consent Bluetooth Marketing Technology, by it's very nature, conforms to the MMA'sstipulation that partipants be provided an option to participate. Every

    participant in a Bluetooth Marketing campaign must first consent that they

    wish to connect to the server and download content before they will be sentanything more than a request.

    3. CustomizationAs noted earlier in our Best-Practices section Discovering Trends via Surveyswe highly recommend customizing Bluetooth Marketing contents for the

    participation of specifically targeted individual customers.

    4. ConstraintWe make our best effort to keep every campaign relevant as per theexpectations of the end-user. Similarly, we highly discourage bombarding

    people with ads and connection requests that only serve to annoy them. For thisreason, we strongly emphasize developing per-use protocols for schedulingcampaign programs to ensure that individual customers know what to expect inthe course of a set of campaigns.

    5. SecurityMany phones use a pin code for added security of Bluetooth communications.It is also important to emphasize that all data on a content-push Bluetooth Marketing campaign is coming from the transmitter. The only information thatwe can access about the end-users phone is it's make, model and MAC address -none of which is private data.

    6. Enforcement & AccountabilityWhen deploying our technology we work with our clients to develop protocolsfor the sustainable enforcement of quality-control standards.

    All Proprietary Contents Copyright QuaBLUE, 2009. All information cited is the property of the sources cited.This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.

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    IV. FAQ

    1. Is Bluetooth Marketing SPAM?

    The answer to this question is NO! Most of us know SPAM as the dreadfulstuff that clogs our email inbox. SPAM is ALWAYS nefarious in nature -

    meaning SPAMMERs do not care if you opt-out. In the case of Bluetooth Marketing Technology, we don't send you something and wait for you to opt-out. Instead just to get involved in a campaign you must first Opt-In.Additionally, even if you Opt-In once, you'll always need to Opt-In again for future campaigns. We don't make any assumptions. If you don't want toconnect with our Bluetooth Transmission System, simply set your phone for 'Invisible' mode and you won't receive a single request to connect.

    2. Won't this Annoy People?

    We take care to ensure that the promotions we send add-value to your experience at our location. If you do not want to participate in receivinginformation from us using Bluetooth , simply turn your Bluetooth off or setyour phone for 'Invisible" mode and we won't send you a single request toconnect.

    3. Isn't this an intrustion into personal privacy?

    No private data is collected from the phones. All that is received from the phone is the make, model & MAC address. This information cannot be used tocompromise your identity in any way.

    4. Is Bluetooth Marketing for connecting to Bluetooth headsets?

    Bluetooth Marketing is NEVER used for connecting with Bluetooth headsets. Some people associate Bluetooth with the use of Bluetooth Wireless Headsets since Wireless Headsets were the single biggest factor inmaking the use of Bluetooth standard in the U.S. Bluetooth Marketing uses

    Bluetooth as a Wireless Communication protocol for delivering information toCellular Phones within proximity of a point of transmission (100 meters in mostcases.)

    5. Does my phone have Bluetooth ?

    Every phone is unique. Most phones sold in the U.S. in recent years come

    equipped with Bluetooth Technology. If you purchased your phone over 2years ago, you may need to check with your service provider or themanufacturer if you are unsure. In most cases, you will find Bluetooth in your Connectivity and/or Settings Menu on your phone. If it is not present in either of those menu's it is likely you do not have a Bluetooth equipped cell-phone.

    6. Is Bluetooth Free to use?

    Bluetooth is entirely, 100% free. Bluetooth is simply a wirelesscommunication protocol. It is not a carrier-controlled method of communications, so your carrier can't and won't charge you for using it. If your