Bluetooth & Advertising

1. Bluetooth & Advertising

2. What is Bluetooth? • Bluetooth - named after the Danish King Harald Bluetooth (940 - 985 AD) was introduced by Ericsson in 1994 in order to unite computers and telecommunication devices wirelessly. • Bluetooth allows wireless Personal Area Networks (PAN’s) to be created in order that information can be exchanged between computers, mobile phones, printers, cameras and video consoles over a secure, globally unlicensed short-range radio frequency. • Depending on the power of the device Bluetooth can be used over 1 meter (1mW), 10 meters (2.5mW) or 100 meters (100mW). • At present Bluetooth can transmit data between 1 Mbit/s (version 1.2), to 3 Mbit/s (version 2.0). Speeds of 53 - 480 Mbit/s (WiMedia Alliance) have been proposed. • There is no setup required on Bluetooth enabled devices, making it easy to use, as opposed to WiFi networks which require expensive equipment, greater power output, and complicated installation processes (such as setting up network addresses or giving multiple permissions). • Pairs of devices can establish a trusting relationship by sharing a passkey of 4 digits. Devices generally require pairing or prompt the owner before they allow a remote device to use any or most of their services. Some devices, such as Sony Ericsson phones, usually accept OBEX business cards and notes without any pairing or prompts.

3. How can Bluetooth be used in advertising? Basic application of the technology • Bluetooth technology can be integrated into posters, billboards, and bus shelters in order to produce an effective interactive advertising and marketing opportunity. These areas are known as “Bluetooth Hotspots”. The process as a whole is known as “Bluetooth Proximity Marketing”. • Within a range of 100 meters it is possible for these Bluetooth enabled billboards to scan for pedestrians’ Bluetooth mobile phone handsets (if they are set on ‘discoverable mode’ meaning that they are visable to other Bluetooth devices). • The billboards/ bus shelters would then send messages to the mobile phones requesting permission to send them content. If accepted music files, wallpapers, games, java applications, sales vouchers or short video clips can be transmitted from the billboard to people’s phones free of charge. • These pieces of free content would be intended to lead consumers to relevant product websites in order to buy the product, or merely to raise awareness of the product. In the case of music and film these free files act as tasters to whet the consumers appetite to purchase the full versions. • Bluetooth posters also allow viewers to request specific information that they require. This means that the posters do not merely ‘pump out’ information but act as a two way device. This means that the information received can be tailored to the individual. • The billboards can not only interact with Bluetooth enabled mobile phones but also PDAs and laptops that are equipped with Bluetooth.

4. What else can Bluetooth do? More advanced applications of Bluetooth Proximity Marketing. • Bluetooth posters can be used as a point of sale using reverse billing and PayPal services. This means that Bluetooth posters can not only be used as ‘teasers’ for products but they can enable consumers to buy there and then should they wish, by linking them to the relevant WAP sites on their mobile phones. • Bluetooth hotspots are able to monitor the messages that they are delivering in order to prevent sending the same information to the same mobile repeatedly and becoming an inconvenience to the consumer. • This is possible as the site can keep track of the unique codes that each Bluetooth handset carries (referred to as a ‘MAC address’) This means that the poster is not ‘spamming’ consumers indescriminently - which would be perceived as a nuisance and may negatively affect opinions of the brand being discussed. • Furthermore this feature can be used to record which information users of the service access, which could then be used in future marketing activity for the advertiser. This means that Bluetooth posters can act simultaneously as an advertising and market research device for one cost. • Mobile phone users can also display self made content on some more advanced video Bluetooth posters, making them truly interactive. Examples of this will be discussed later in the presentation but highlight the exciting and innovative nature of this medium.

5. Pepsi case study Bluetooth Poster Artwork • Pepsi (US) launched its first Bluetooth posters as part of an integrated advertising campaign in early April 2007 to promote it’s ‘Pepsi Smash’ music website & also the product Pepsi itself. The music website leant itself as a product to introducing Bluetooth technology as there was desirable content (music and videos of artists) to distribute to phone users. • Interactive bus shelters were installed in Washington DC, New York, L.A, Denver and Orange County; alongside pay phone kiosks in Pittsburg & Philadelphia. These Bluetooth posters were created using technology provided by Bluetooth company “Qwikker”. The campaign ran for 2 months. • Bluetooth mobile users were directed by the posters (right) to download video clips from the Pepsi ‘Smash’ commercial. The viral clips that were distributed were provided by Yahoo music and comprised of freestyle hip-hop (obviously chosen to be of interest to the young target market). • To see an example video clip of the content that was available for download (which also explains the process briefly at the end) visit this link & click ‘Watch’ for “Mic Pass - NYC Bluetooth:Pepsi Smash” • Alongside the bluetooth element of the campaign TV advertising was run including a slot featuring Fergie from popular band ‘The Black Eyed Peas’ in the prestigeous Superbowl ad breaks -see Pepsi Smash Superbowl TV ad here.

6. Was the Campaign Effective? Pictures from downloadable video content • In the first week of the Pepsi campaign the opt in rates to download data were 27% across the network. This is an impressive level - especially as the medium is relatively new to consumers. This medium lends itself to early adopters. • By the end of the campaign over 70,000 hits were delivered by the Bluetooth enabled poster sites and nearly 8000 people successfully downloaded the music video content (over 10% of those who were offered it). • These rates of participation stand up well to other types of media. Mobile SMS campaigns have a similar response rate of around 12%, whereas more traditional media such as direct mail have poor response rates of only 2 - 3%. This is likely to be because of the ease of downloading content on your mobile, as opposed to having to post something away to learn more which takes a lot of effort. • As the video clips downloaded can be passed from phone to phone free at the user’s leisure via Bluetooth it is also likely that those who accepted the content from the posters & kiosks went on to share the Pepsi video clips with their friends & family. This would have increased the amount of people being exposed to the advertising content. • As the content was highly branded it is fair to say that each time the mobile user viewed the music video “Pepsi” as a brand will have been activated in their minds. Psychological studies (Zajonc 1968, 2001) have concluded that this repeated activation (referred to as “mere exposure”) is likely to foster subliminal feelings of familiarity & preference towards the stimulus which is being repeated (in this case the brand ‘Pepsi’) This could then translate to choosing Pepsi over other colas in this market of parity products. • If the phone users decided to use their downloads as ringtones the aforementioned effect would be even stronger as “Pepsi” would be activated in their minds each time their phones rang. Undoubtably a positive effect for Pepsi. This repeated access to people’s consciousness day and night in their private worlds cannot be reached by TV commercials or print ads.

7. Improvements that could be made to this campaign • I feel that Bluetooth technology could be integrated into a number of other places, not just bus shelters and outdoor phone kiosks - if the technology could be integrated into vending machines then (with further software being developed) it should be possible to receive a ‘reward’ of a piece of music, a video or a wallpaper for your phone each time a can is purchased. In this case the Bluetooth device would only be active for say 1 minute after each purchase to encourage a sale, and meaning that people just standing near the vending machine could not access the content. • It could also be possible for there to be codes on the ring-pulls of Pepsi cans or on the inside of Pepsi bottle lids which could be entered when in range of the Bluetooth poster so that further (not available to everyone) content could be accessed. At this point a choice could be offered so that a person could collect a number of different clips if they wished. • The Bluetooth enabled posters would also do well to be positioned in places such as Cinemas, bowling alleys and ice-skating rinks near the point of sale of Pepsi, and where a lot of youths go. With cinema posters the content could be tailored to the films that were showing - for example wallpapers of the celebrities in the films, or soundtrack clips being available for Bluetooth download. In sports venues sports stars could be involved, so that the audience would be maximumly interested in the content available. • At the adshell interactive bus stops, as the audience have some time available to them they could integrate some form of two way interaction into the bus shelter. For example, the audience could film themselves singing or performing a special trick using their mobile phones, which could then be Bluetooth-ed to, and displayed on the bus shelter for a period of time. People could even go on then to view the different clips and vote for their favourite. This would require the shelter to be reinforced for safety of the video screen but could be done.

8. How else has Bluetooth been used in advertising? 1) ASB Bank ‘Pago’ - Integrated Campaign • In December 2006 ASB bank New Zealand launched a new piece of technology that allows people to set up a ‘digital wallet’ and to text money to one another. This was given the brand name ‘Pago’. • The bank stipulated that non traditional ‘through the line’ advertising techniques be used in order to make an impression on their target market - namely opinion formers and early adopters referred to as being ‘digital natives’ & a ‘techno-savvy youth audience’. • An integrated campaign was designed by TBWA/WHYBIN New Zealand including modified $5 notes - which had a sticker placed over Sir Edmund Hillary’s face to make him appear pixellated, ‘Post it’ note installations in the main train station in Aukland, posters and Bluetooth enabled Adshells. • ‘Hypertag’ Bluetooth technology was used to turn the adshell posters into cash machines. During a three week radio promotion listeners were alerted to a time and place where the Bluetooth adshells would ‘go live’ and would then send them ‘cash’ (in the form of digital vouchers) to motivate them to set up the digital wallet service. • These posters interacted with both Bluetooth and infrared devices. RIGHT 30,000 ‘Post it’ notes were made into a mural of the modified 5 dollar note in a train station. The notes all contained the vital information about the service. The notes were removed by the public and the display was decimated within a week. ABOVE - The face of explorer Sir Edmund Hillary was covered with a sticker making it appear pixellated. These were fed into circulation with permission of the New Zealand Mint

9. Was the Pago campaign Effective? • This revolutionary integrated campaign yielded highly positive results. Within the first three months there was a 40% awareness of the Pago system amongst the target market of 18 to 24 year old men and women. • The original goal of the campaign was to drive 400 people to subscribe in the first week of the launch. This was achieved three-fold with over 1200 subscriptions to the service being achieved within the first week of the campaign. • Pago content was delivered via the Hypertag Bluetooth technology to 3821 mobile phone handsets, with a staggering 76.4% of them going on to subscribe. This is undeniably an exceptionally high acceptance rate. This is likely to have been due to the competition and ‘free cash’ element of the campaign but also that the Bluetooth technology allowed you to be directed to a WAP site where you could join the service quickly and easily. • The Pago campaign was not only a hit with consumers but also with the creative industry - receiving five honours at the Cannes Lions International Advertising Festival in 2007. These included Media Grand Prix in the ‘Financial Products & Services’ category; a Bronze Media Lion in the ‘Best Use of Ambient Media: Small Scale’ category; another Bronze Media Lion in the ‘Use of Mixed Media’ category; a Bronze Direct Lion in the ‘Alternative Media’ category for the pago Money Sticker; and a Promo Lion in the ‘Best Integrated Promotional Campaign’ category. • The campaign was also shortlisted in the Titanium and Integrated Lions awards. • The beauty of the use of Bluetooth in this campaign was that it was tailored to the target market who already had a good knowledge of mobile phone and Bluetooth technology, meaning that the terminology in the posters was understood easily and uptake rates were high. In this case the medium of Bluetooth adshells seemed to be intuitively linked with the product which is also used via mobile phones. This medium would not have been appropriate if the target market where the older, less techno savvy generation

10. 2) Ecko Unltd - “Bluetooth Citylight” • Clothing company ‘Ecko Unltd’ used Bluetooth technology in a novel way by creating interactive posters (in Hamburg, Germany). These LCD displays allowed passing Bluetooth users to ‘tag’ the display using their mobile phones. • The colour and intensity of the ‘paint’ being used could be controlled via the phone (see photo right). By using the cursor on the phone the paint would appear to be spraying onto the poster. This is in homage to Mark Ecko (founder of the Ecko clothes label)’s early love of graffiti. • Although this campaign used Bluetooth in an innovative way there are a number of possible problems, the first of which being monitoring the content that is ‘sprayed’ onto the posters. It would not be a positive thing for Ecko if abusive language (such as racism, sexism, or swearing etc) is placed on the poster in association with the brand. • The amount of time that it might take to do a design - with the setup that is required, may deter users from using the poster interactively, whereas the Pepsi bluetooth content was relatively quick and easy to access. • The campaign has however garnered much public response on blogs & forums on the internet(see here) with a large number of people reacting positively seeing it as a mess free and ‘cool’ way of displaying graffiti. This medium of expression is a good way for Ecko to ‘bond’ with their target audiences (as Ecko clothing is designed for young people who are urban and socially conscious)

11. 3) “Orange Babies” for HIV awareness. • The Dutch HIV awareness charity “Orange Babies” was set out to raise awareness and create funds for HIV infected African mothers. • Ogilvy Amsterdam created a unique interactive display at the ‘Millionaire Fair’ in Amsterdam utilising Bluetooth technology, which created a highly captivating execution on a very small budget. Bluetooth is a cost effective medium and therefore creates a lot of ‘bang for the buck’. • The Orange Baby stand featured an interactive video screen showing a baby crying. As visitors approached the stand they were Bluetooth-ed the message “Do you hear a baby crying? Let her smile again. Orange Babies” along with a photo of an upset baby girl (see image top left). • When people then placed money or notes into the stands above the video screens the baby turned from tearful into smiling and giggling. The campaign focused around the campaign line “Your donation makes the difference” • The results of this application of Bluetooth technology was successful with over 45000 euros being raised for the charity. The response rate to the Bluetooth message was 8.3%, which as aforementioned is higher than some traditional media such as direct mail (only 2-3% even for charities). • Although this was only used in one location, Bluetooth proximity marketing could be particularly effective for charities, with the possibility of donations being made via the internet on mobile phones rather that literally putting money into a box (which would be less viable in non secure places). This would allow people to donate to charity without the annoyance of people hassling them with clipboards in the street. • The content that would be shown would have to be chosen carefully however so that it was not too distressing, as this would be off-putting and people might avoid looking at the poster/video all together,

12. Evaluation of Bluetooth. Positive Points • Bluetooth enabled posters etc are cost effective, as they are relatively cheap to set up when you compare them to other media such as TV or print. A single basic bluetooth hotspot costs approximately £1000 plus the rental of the space. • If Bluetooth sites are used to gather information this also means that difficult to otherwise obtain data can be obtained from the public for little extra cost (only the extra price of the additional software) • The viral effect of the content that is sent to phone users should also not be underestimated, as if the content is passed from one person to another via bluetooth then this further advertising is completely free of charge to the advertiser. • Bluetooth enabled posters allow people access to content they genuinely want, and which will remind them of the brand that sent it to them every time they use it. The free content will also make the brand appear generous and will help foster consumer relationships which are particularly important in parity markets - such as with Pepsi. • Bluetooth posters such as the Ecko example allow people to be truly interactive with a brand, which is not possible with TV, press and radio which are one way communications • Unlike infrared Bluetooth can deliver messages to multiple people at one time, and outside a direct line of sight.

13. Negative Points • People do not always keep their mobiles on ‘discoverable’ mode (for security reasons - as people can ‘hack into’ your phone and details using Bluetooth), or they don’t have Bluetooth turned on all together, which means that messages from Bluetooth enabled posters would not be received. • A large number of people, particularly those of the older generation are not au fait with how to use the Bluetooth functions on their phones, even if the Bluetooth is turned on. This could however be helped with good instructions on the posters. This problem should diminish with time as all generations will be more IT literate. • Some brands of mobile phone (Nokia particularly it seems at this point in time) have more problems with others in receiving, and sometimes they don’t work at all. The new iPhone also appears to have a number of ‘glitches’ with it’s bluetooth functions. • At this point in time Bluetooth only works over a relatively short range. This is more of a problem for billboards, where people will be trying to interact from further away than for posters (where in order to read them they will almost definitely be in range) • People may perceive Bluetooth to be an invasion of their privacy, as mobile phones are considered to be a highly personal domain. • This will be worsened if Bluetooth posters are not self monitoring, so that they will try to send the same message to the same person multiple times. This can be avoided by the devices remembering people’s unique MAC addresses so as not to ‘spam’ people.

14. What do the experts say? • "Among 18 to 34-year-olds, particularly in the younger parts of the age range, Bluetooth is the channel of choice for receiving and sharing content....The encouraging news is that they [consumers] see it as any other media channel and so expect to be advertised to through it. The market appears very willing to receive sponsored content and offers, so long as they're opt-in and compelling...What's also encouraging among the older part of that age group is that business people on the move are using the technology to synchronise mobiles, PDAs, laptops and computers. So the technology is a huge opportunity that's being widely used and now comes as standard on most phone and PDAs. It's a huge new opportunity”. MMA chairman, Nick Wiggin. • “It’s using sight, sound and motion [to] sample our programming,” explained George Schweitzer..This is the best way to sample a TV show, he said, adding that everybody likes a free sample” George Schweitzer, president of the CBS Marketing Group • “I would be shocked that it wouldn’t have positive impact...This is a perfect product demo. When the ad becomes the content, I think it works perfectly.” Greg Stuart, CEO of the Interactive Advertising Bureau in New York

15. Blogs & Websites for more info... • Ogilvy's Rohit Bhargava's blog - Landrover Bluetooth campaign • Media Week blog on Bluetooth advertising • "Bluetooth Weblog" • ad2hand.co.uk • Tom Hume bluetooth blog

16. Thankyou Claire Phillips ClaireP2001@aol.com