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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://www.quablue.com
info@quablue.com

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.
1
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-traffic
including 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 by


QuaBLUE 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 not
to 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 about


how Bluetooth® Marketing technology may be adapted to an organizations
Marketing strategy.

Sources are cited throughout the paper.

For questions or for more information on QuaBLUE Proprietary Bluetooth®


Marketing Technologies, contact us at: info@QuaBLUE.com

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.
2
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.
3
An In-Depth Look at Bluetooth® Marketing

Part 1: Why Bluetooth Works as a Marketing Medium


Contents
I. Bluetooth® Marketing General Overview 5
1. The Origin of Bluetooth®
2. Bluetooth® Applied to Marketing
3. How it Works

4. The Individual Experience of Downloading Content 6


via Bluetooth®

II. Bluetooth® Compared with SMS/text messaging 7

III. The Business Case for Bluetooth® Marketing 8


1. Individual Claimed Adoption Statistics for 2006-2008

2. Web 2.0 Concepts Converge with Real-World 9


Application

3. Trackability for Real-Time ROI Analysis 10


4. Ad-Space Sale Opportunities

IV. Industry Trends in Adoption of Mobile Marketing 11

V. The Other Positive Effects of Advertising Qua BLUE 12


1. The Psychology of YES: What Opt-in Messaging Truly
Delivers
2. The Empowerment Principle: VIRAL AMPLIFICATION
3. The Modern Value of a Green Solution:
Communicating Your Company's Dedication to the
Elimination 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.
4
An In-Depth Look at Bluetooth® Marketing

I. Bluetooth® Marketing: General Overview


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

Today Bluetooth® has become a leading standard as a cable-replacement


technology, making it possible to wirelessly synch information between
mobile-phones, laptops, smart-cars, etc. Best known for it's standardized
use as a wireless headset solution, 95% of cell-phones sold in the U.S.
today1 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 Marketing


Standard Bluetooth® Marketing Materials are appealing graphical, multimedia
and/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 via
Internet-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-world
Social Networking.

3. How it Works
Bluetooth® operates in the 2.4GHz frequency range. While most devices can
only 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 and


advertising 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 device


within 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 and
will 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 the
message stored on her phone. If a user wants to stop any future transmission
requests 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 2008
2 IMS Research Report, "The Worldwide Market for Bluetooth® Technology — 2008
Edition"

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.
5
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.
6
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 substantially
different 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 maximum
impact out of a Mobile Marketing campaign. Bluetooth® makes it possible to
send 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 to
communicate 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 fees
and 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 Television
advertising.

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

Features Bluetooth® SMS Txt MMS Messaging


USED TO IDENTIFY MOBILE
PHONES WITHIN A GIVEN YES NO NO
PROXIMITY RANGE

USED TO SEND VIDEO,


PHOTOS, MP3'S, YES NO YES
INTERACTIVE CONTENT,
GAMES, ETC.

USED TO PROVIDE SMS


CODES FOR 'TEXT-BACK' YES YES YES
REDEMPTION

USED TO PROVIDE
UPCOMING EVENT YES YES YES
INFORMATION

USED TO AUTO- CONFIGURE


CALENDAR DATES IN MOST YES NO YES
PHONES

USED TO AUTO-CONFIGURE
CONTACT INFO. IN MOST YES NO YES
PHONES

USED AS A WIDE-AREA
BROADCAST YES YES YES
ANNOUNCEMENT

USED AS A CALL TO ACTION


FOR ON-LOCATION CELL- YES YES NO
PHONE USERS

In most cases Bluetooth® can be shown to far exceed the use-case scenarios
available for standard SMS text-messaging campaigns - especially when
deployed on-premise where on-location or nearby patrons are located -
making Bluetooth® Marketing an opportunity at expanding on-premise
advertising 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.
7
An In-Depth Look at Bluetooth® Marketing

III. The Business Case for Bluetooth® Marketing


1. Individual Claimed Adoption Statistics for 2006-20083

While there are still some individuals in markets around the world, including
the 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 by
Bluetooth® Marketing campaigns), almost all cell-phones sold in the U.S.
today are Bluetooth® capable. The above pictograph is represenative of a poll
taken by Millward Brown, published in 2008, which surveyed individuals as to
whether or not they were aware of purchasing or owning a Bluetooth® enabled
cell-phone. The actual rates of claimed purchases are expected to grow through
2010 as more-and-more individuals in the U.S. become aware of the
Bluetooth® that they have on their phone. No age requirements were stipulated
in 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® as
a Wireless Connectivity Technology was polled at 91%.

"The US, at 91%, has caught up fully with Asia and Europe in
overall 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 it
in the past.

Thus, the age-bracket most aware of the technology is also the


most targetable age-bracket, making individuals in the U.S. aged 18-32
a demographic grouping well-positioned for targeting with Bluetooth®
Instant Marketing materials.

3 Bluetooth Brand Equity Study, Millward Brown, Dec. 2008


4 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.
8
An In-Depth Look at Bluetooth® Marketing

2. Web 2.0 Concepts Converge with Real-World Application


In 2004 a new media concept was born termed 'Web 2.0.' It's birthplace was
San 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 business
revolution 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 2.0
results 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 the
model of user-generated content including Twitter, Facebook, YouTube, Digg
and 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 virally
disseminated 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 (as
opposed to the pre-2000 era of the internet) also apply to emerging mobile-
technologies including mobile-based augmented reality applications, social
networking extensions, and, for that matter, Bluetooth® - a powerful medium
capable of connecting phsyically and geographically diverse groups of persons
instantaneously.
While SMS/text messaging represents a great way to get out a call-to-action to
a 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, redeem
coupon-codes and pass-on information to friends if found to be engaging.
Bluetooth® thereby affords the end-user opportunities for interactive content
downloads 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 take
advantage of the development of Web 2.0 concepts and principles in the real-
world and in real-time for immediate results measurement and tracking. In
the 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 be
difficult 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 more
likely 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.
9
An In-Depth Look at Bluetooth® Marketing

3. Trackability for Real-Time ROI Analysis


Bluetooth® Marketing with QuaBLUE affords businesses a unique opportunity
at tracking real-world individual interaction and real-time end-user experience
with 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 from
multiple transmission points, at which point all cell-phones with their
Bluetooth® enabled and within range of each transmission point are then
located and a MAC address and Model/Brand for each phone is identified and
stored. 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 given
campaign might easily be immediately replaced until optimal results are
achieved and without any of the costs that would otherwise be incurred in
mid-campaign alteration using other media formats.
REAL-TIME STATISTICAL FEEDBACK:

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

Redemption codes can be offered for Viral dissemination of Marketing and


Advertising materials. Depending on the nature of the promotion, redemption
can 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 easily
configured for QuaBLUE General Administration Server Access to all devices.
Per-transmitter permissions can be configured with Server-wide reporting
functionality 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 by


selling 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.
10
An In-Depth Look at Bluetooth® Marketing

IV. Industry Trends in Adoption of Mobile Marketing

Entertainment Leads the Way in Adoption


followed closely by Automotive and Food

"The entertainment and automotive industries are


leading the adoption of mobile advertising, as 81% of
L.A. survey respondents [planned] to run a mobile
campaign 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 in


mobile 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-advertising
8 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.
11
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 first
step in developing a positive association between the immediately accessible
customer brand experience and the final decision to act on a call to action. The
more engaging the end-user experience is at the time of the connection in
viewing and/or using the downloaded information the more enthusiastic the
individual customer will be in responding to this new form of marketing. The
first "YES" will thereby pave the way to conversation, and many more YES's to
come from both the initial participant and their circle of influence.

2. The Empowerment Principle: VIRAL AMPLIFICATION

After an individual customer has downloaded Bluetooth® Marketing materials


onto their cell-phone they can become the first point of contact in a long-string
of "pass it forward" (aka, VIRAL) messages.

We call these indirect consequences of a direct-to-customer campaign the


VIRAL AMPLIFICATION of your Bluetooth® Marketing Materials.

3. The Modern Value of a Green Solution:


Communicating Your Company's Dedication to the Elimination of Waste in
the 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-place
advantages over competitors. Similarly, when the substance behind a Green
Initiative is defined in effective communications with both individual customers
as well as with share-holders the consequential added-value of doing business
with a Green company may be significantly improved: a fact which, when
realized, will yield better customer relations (i.e., sales & revenue) and better
stock values for a positive correlation between cost-savings and increases in
revenue.

In the case of Bluetooth® Marketing, the Green Solution is readily and


immediately available upon every on-site customer experience that occurs
throughout the course of a Bluetooth® Marketing campaign.

This is significant since individual customers are not likely to take recurring
notice of the efficiency of a typical business' energy distribution system, data
storage management system or any variety of other 'behind the scenes' cost
savings.

Rather, in a very real sense Bluetooth® Marketing Technology delivers a Green


flier into the pocket of the individual customer reminding them upon every
interaction 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 and
even 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.
12
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.
13
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 16


Step 1: Determining Viability based on Nearby
Foot-traffic
Step 2: Case Study References and Collection of
Demographic Information
Step 3: Understanding the Demographics
& Achieving Awareness of Campaign

II. Cost Effectiveness 17


1. Cost Comparison: Print
2. Cost Comparison: Billboards

3. Supplanting the Cost of Regularly 18


Redeploying Other On-Premise Signage

III. Creative Resources 19


1. In-House Capabilities
2. Out-Sourced Capabilities via QuaBLUE

IV. Immediate and Long-term ROI Considerations 20


1. The INITIAL Cost of HW as the Greatest Cost In
Deploying Bluetooth® & Yields a Fast Return
2. Strategic Integration into Ongoing Marketing
Strategy & Vision

V. Formats for Communication 21


1. Digital Coupons
2. Digital Videos
3. Interactive Animation &/or Tutorials
4. Video Games
5. Maps
6. Calendar &/or Contact Info

VI. Redemption Opportunities/Systems 22


1. "On-Sight" Redemption
2. POS Redemption Systems
3. Web-Based Redemption Systems
4. SMS/Text Message Redemption

VII. Immediately Proposed Campaign Concepts: 23


Formulating a Strategy for Initial Implementation

VIII. Staff Education: Training in the Real-World Application 24


of Web 2.0 Principles within the Physical Environment
1. Ongoing Staff Training & Consultation Services
2. Applying the Lessons of Web 2.0
3. A New Model for Increasing ROI
4. 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.
14
An In-Depth Look at Bluetooth® Marketing

Introduction to Part 2
As detailed in Part 1 of this Whitepaper, Bluetooth Marketing is becoming an
increasingly attractive medium for interacting with customers.

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

Part 2 of this Whitepaper details both the challenges and the opportunities
which 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.
15
An In-Depth Look at Bluetooth® Marketing

I. The Third Screen: Capitalizing on On-Premise


Opportunity
Step 1: Determining Viability based on Nearby Foot-Traffic
Understanding where and when an opportunity exists is the first step in recognizing
a 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 a
given 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 to


estimate the number of Bluetooth® enabled phones within range of a given
location, 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 to
determine the actual number of Bluetooth® enabled phones in a given area.

Step 2: Case-Study References and Collection of Demographic Information


While 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 that
no 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 the
request then opted-in to receive the message.

These numbers reflect the performance of past "blind" campaigns (campaigns run
without signage instructing people to "Turn On Your Bluetooth®".)

When running ongoing campaigns simply hanging additional signage or providing


other 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 300
will 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 On
Your Bluetooth®" the number of devices detected will significantly increase while
the ratio between devices detected and 'opt-in' downloads will also show dramatic
improvement.

In a stadium deployment, for instance, multiple transmitters would be managed on a


fully redundant mesh network. This means that once an individual has downloaded
a 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 a
new campaign has begun.

Step 3: Understanding Demographics & Achieiving Campaign Awareness


While we have found that individuals aged 18-32 (and younger) are more likely to
have their Bluetooth® enabled & to understand how to use it with little-to-no
instruction, we have also found that when provided with appropriate instructions
individuals aged 32-55 are just as likely, if not more likely to redeem a digital
coupon 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 individual
trusts the source of the transmission, they will be much more likely to participate
then 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.
16
An In-Depth Look at Bluetooth® Marketing

II. Cost Effectiveness


1. Cost Comparison: Print

When compared with the use of digital coupons or fliers, printed fliers are
costly 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, delivery
and 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
versus
10,000 Full Color, Digital Brochures/Coupons: $32.00 or .32c each9

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 was
expensive or even unfeasible due to high cost of print (plus distribution!) the
final cost of creation, administration, distribution and full results-reporting of a
QuaBLUE Bluetooth® Marketing Campaign means greater ROI at an
exceedingly low fraction of the cost of running traditional print campaigns!
Hence, new advertising opportunities will be discovered where take-home
advertising 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 delivered


using Gross Rating Points. As far as we're concerned that's about as good as
guessing! We deliver real results analysis based on connection statistics using
the same philosophy that has made Google's approach to advertising a modern
success, 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 the
discrepancy!

GRP Impression Avg Costs (for Billboards in NE Ohio):


$3-$5 per Impression
versus
25c - $1.00 per Bluetooth® Digital Impression/Connection10

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 by
QuaBLUE 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.
17
An In-Depth Look at Bluetooth® Marketing

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


Signage (including static image, digital, etc.)

Be it on-premise vinyl banners, printed posters, upright signage or window


graphics, 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 a
new promotion is launched, a single banner that says "Turn on Your
Bluetooth®" might easily cut costs so that the only promotion that requires
constant 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-action
necessary to provide the actual information used to drive your customer to the
desired action - thus providing yet another incentive to participate in the
Bluetooth® campaign. This also applies to digital billboard signage - simply
telling people to "Turn on Your Bluetooth®" only requires a single up-front
production cost and thereby eliminates the time and resources that would
otherwise go into developing custom videography for per-campaign needs.

Example Banners: Originally Installed Downtown Akron, OH

3'x4' Horizontal Instructional

8'x24' Vertical Billboard

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
18
An In-Depth Look at Bluetooth® Marketing

III. Creative Resources

1. In House Capabilities
A company with an in-house Marketing Department that is dedicated to
managing and constantly revising ongoing marketing campaigns will
significantly decrease costs in time allocated to planning, implementing (that is,
distributing) and tracking campaigns whenever and wherever traditional media
management is strategically supplanted by the administration and creative
application of QuaBLUE Bluetooth® Marketing Technologies.

In the event that QuaBLUE is hired by a client to develop a solution, a


designated allotment of consultation services are included with any
transmission 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 technology
with in-house management resources. In so doing we aid our clients in
determining the most cost-effective method for managing their QuaBLUE
Bluetooth® Marketing Solution.

2. Out-sourced Capabilities via QuaBLUE: SMB Applications


With every initial package that we design or sell through our corporate
headquarters we also include a FREE Bluetooth® Digital Coupon Template. This
template is valued at a minimum of $125 in design costs (assuming no custom
photography or videography required.) Any redesign of this template by
QuaBLUE 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, where
upload and reporting each cost $12 if performed by QuaBLUE. We offer this
flexibility in management options since we recognize that many of our clients
may have technical staff capable of managing specific campaign details though
they 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-house
management 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. This
ensures that our clients are provided with a standard time-frame by which to
determine their own capacity to perform administrative functions in-house.

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
19
An In-Depth Look at Bluetooth® Marketing

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 single
transmitter 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 net
gain must be from any given campaign and/or redemption offered in that
campaign.

For instance, a Tire Store may offer a deal on the installation of 4 new tires to
100 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® deployment


regularly 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 assuming
management by QuaBLUE) costs will be higher and ROI will take longer than
if Bluetooth® campaigns are more regularly scheduled and/or less-frequently
changed (and assuming managment by client.)

If 4 new tires at $60/tire is making a Tire Store client 10% profit/return, 3 new
clients/week would result in a $72/week ROI with a maximum of 7 months
lapsed 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 average


of 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! This
example is provided merely as an illustration since most of a Stadiums
measurable ROI will likely come from Advertisers.

These are considered to be VERY conservative numbers as they are based on an


estimated 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 an
early-adopter, as referenced above. The intrigue involved in redeeming an offer
while the utilization of Bluetooth® Marketing is still new in the market-place will
likely aid in driving early-stage participation. Ongoing strategic integration of the
technology into the marketing strategy of a given firm will optimally situate
early adopters for ongoing increases in ROI due to deployment efficiencies (i.e.,
process streamlining) and creative proficiency in leveraging Bluetooth®, as well
as the maximization of ongoing impact in interactive media wherever the same
principles apply. Thus, preparing early-adopters for future adaptations to
technological 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.
20
An In-Depth Look at Bluetooth® Marketing

V. Formats for Communication

Just as Television is a medium for a variety of programming and just as the


internet is a medium for a variety of media formats, so Bluetooth® is a medium
for 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-code
scanning 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 and
is 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) digital
video produced for the cell-phone is naturally less-expensive and more
affordable than videography produced for the big-screen, since compression
ratios and pixel-counts often play a factor in determining the final cost of video
production. That said, Bluetooth® affords an opportunity at killing many birds
with one stone: YouTube + Bluetooth® + potentially even T.V. ready video
yields instant cost-savings alongside immediate results measurement and a
captive 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 the
motions of your Avatars' on-screen performance. Interact with your customers
via an animated overview of a specific product or experience. Whatever the
case, 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 providing
games that stimulate the senses that you want to stimulate. Create passion,
conviction, envy or enthusiasm. Video-games are a great method by which to
stimulate emotional interaction and may be easily downloaded via Bluetooth®.

5. Maps
Provide your patrons with Interactive Java Maps that point the way to the
nearest 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 making
for a great immediate and even accidental future point of reference on the part
of 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.
21
An In-Depth Look at Bluetooth® Marketing

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 offers
allowing 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 sum
total amount of redemptions without requiring costly integration with a given
POS system.

This redemption style is termed the "On-Sight" redemption method since no


verifiable proof is required of the POS employee other than a keypress
indicating 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 POS


system 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 all


redemption information annotated and stored for ongoing reference.

Information such as emails, demographics, cell-phone numbers, etc. may be


maintained 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 Common
Short 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 attainment
of specific geographic information and/or demographic information is a priority,
since the collection of carrier exchange data and/or specific carrier demographic
information may be referenced upon the receipt of specific information from the
participating 'texter'.

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
22
An In-Depth Look at Bluetooth® Marketing

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 multiple


initial factors be put to consideration:
1. Awareness (telling people to "Turn on Your Bluetooth®")
2. Instructions on Using and Redeeming Downloaded Information
3. Simplicity of Initial Campaigns being Delivered to Cell-phones
4. Fresh, Engaging, Relevant Campaigns: Creating Added-Value Promotions
5. Redemption
6. Tracking Results

When all of these factors are taken into consideration a comprehensive


campaign may be managed and delivered to individual customers for a
complete 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 when
a 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 a
digital flier, promotion or coupon calling for an immediately relevant action on
the 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 we
have 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 Technology may at times preclude a certain potential for
presumption amongst early-stage adopters that simply because they are utilizing
this incredibly effective technology it will be effective no matter the ends
sought or the creative strategy employed in the design of relevant campaigns.
For this reason alone we emphasize the fact that the technology is simply a
conduit for the prompt and efficient communication of information. The proper
and effective utilization of the technology will alone result in whatever degree
of effectiveness is achieved.

The Point: Don't be afraid to Deploy - but Don't be afraid to be constantly


learning 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, and
what added value you seek to provide them with. Without these key
ingredients, the greatest effort may be put into a Bluetooth® Marketing
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.
23
An In-Depth Look at Bluetooth® Marketing

VIII. Staff Education: Training in the Real-World


Application 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 implementation


of Bluetooth® Marketing Technology and Campaigns, we believe that customer
service, support and relationship development are key to the proper utilization
of the medium.

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

Understanding per-client corporate values, internal organization and individual


staff motivations should play a key role in establishing the procedures necessary
to 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 we
can take away from the Social Web (Web 2.0) experience are invaluable when it
comes to effectively engaging individual customers.

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

If the experience is truly engaging and impresses the individual customer they
won'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 new
marketing technologies tomorrow.

Thus, while right now it makes sense to apply the lessons that we're learning
from the Social Web to the real-world customer experience, the lessons learned
at this stage in the game from the application of those principles will provide
golden 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 more
and more picky, making relevance and excercise of best-practices of primary
importance.

Bluetooth® provides great opportunities to get ahead of the game at an early


stage!

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
24
An In-Depth Look at Bluetooth® Marketing

Part 3: A Roadmap for Adoption

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25
An In-Depth Look at Bluetooth® Marketing

Part 3: A Roadmap for Adoption


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

II. Steps Explained 28


STEP 1: Analysis of Available Data
STEP 2: What is the Radius of the Area
Requiring Bluetooth® Transmission
Coverage?
STEP 3: Determine the HW Requirements
for the 1st Phase of Deployment

STEP 4: Design both Strategy & Creative 29


for Initial Campaign
STEP 5: Determine Early-stage Management
Resources and Allocate Accordingly
STEP 6: Institute Protocols for Measuring
Ongoing Campaign Performance &
Ensuring Best-Ppractices
STEP 7: Deploy, Measure Results & then
Begin Planning for Phase 2 Rollout

III. Starting on the Quest 30


1. Contact QuaBLUE
2. Dialogue and Relationship Development
via QuaBLUE Consultation Services

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26
An In-Depth Look at Bluetooth® Marketing

I. - 7 Step Roadmap to
Adoption of Bluetooth®
Marketing Technology

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

Question: Were the results of the demographic analyses and/or Case


Studies strong enough to merit an investment (in expectation of ROI?)

IF YES, STEP 2: Determine Desired IF NO: Then Consider whether


Location(s) Surface Area & revisitation of future case-study
Number of transmitters opportunities may be worth later
Required for optimal coverage investigation

Step 3: Determine the hw


Requirements for 1st Phase IF YES: Then set IF NO:
Deployment within allocated budget
Date for future Understand
Case study Issues &
record
STEP 4: Develop engaging campaign Findings for future
& locate opportunities for Increasing consideration
awareness of Bluetooth® campaign Go Back to
STEP 1
STEP 5: Determine early-stage
Management Resources
and Strategy

STEP 6: Institute protocols for


ongoing campaign performance
review and utilization of
best-practices

STEP 7a: DEPLOY!


STEP 7b: Measure Success
STEP 7c: Plan for Phase 2 Roll-out

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27
An In-Depth Look at Bluetooth® Marketing

II. Steps Explained


STEP 1: Analysis of Available data

In deploying a first-time on-premise Case Study, the primary purpose is to


determine 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 message
downloads. Unless future blind campaigns are planned as a primary method of
Bluetooth® Marketing outreach strategy, finding this download ratio will likely
have little effect on the success of future campaigns since downloads and
awareness will be externally prompted.

It may even be possible to test redemption as a third test-factor based on


existing POS facilities, though it is not advised that redemption tracking be
included 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's
necessary to prove ROI potential. Though getting to the stage of testing
redeemable promotions comes after confirming that a target audience exists in
close enough proximity to the premise who either A) has their Bluetooth®
already turned on and is prepared to download the information without any
external prompting or B) is close enough to the point of transmission that they
may be effectively prompted to participate in the campaign.

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


coverage?

This is easily enough determined based upon a consideration of both budget


constraints 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 being
carried out. Later tests may be required to confirm estimates as to how many
transmitters 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 also
the optimal number of transmitters needed to cover a given area) the next step is
to put together a Hardware Package with all of the pieces essential to the
relevant 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 'optimally
robust'' the initial solution will be.

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28
An In-Depth Look at Bluetooth® Marketing

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' existing
marketing strategy, initiatives and on-premise approach to marketing whereby
an 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 engaging


advertisements that capture the attention and get the desired results while also
spurring on a powerful viral 'buzz'.

STEP 5: Determine Early-stage Management Resources and Allocate


Accordingly

After deciding on an initial Creative campaign, the next step is determining who
will manage the campaign, when it will launch, what terms will be offered to
the 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 the
results be tracked.

While this may seem like a lot of details, the decision making process is
actually as simple as analyzing resources and identifying who is best prepared
to 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, campaign


deployment and all other relevant aspects of the ongoing strategy provides a
framework for internal accountability. While quality control, decision making,
partner or advertising sponsor involvement and ongoing campaign performance
measurement all require certain procedures be in place for consistent utilization
of Bluetooth® Marketing Technology and campaigns, procedures also make the
isolation 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 Best
Practices simplifies the development of procedures for the sake of streamlining
the 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 2
Rollout.

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

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

It is a cyclical process whereby constant progressive improvements in both


strategy 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 and
which may even eventually become a natural force of habit.

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29
An In-Depth Look at Bluetooth® Marketing

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 to
get setup with a team of consultants, project engineers and creative advisors to
aid in determining the viability of a prospective Bluetooth® Marketing
application.

2. Dialogue and Relationship Development via QuaBLUE Consultation


Services

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

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

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

Contact us to today to start your Quest into the world of Bluetooth® Marketing:
info@QuaBLUE.com

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30
An In-Depth Look at Bluetooth® Marketing

Part 4: Principles and Best-Practices

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31
An In-Depth Look at Bluetooth® Marketing

Part 4: Principles and Best-Practices


Contents
I. Principles 33
1. Simplify

2. Enrich 34

3. Be Honest 35

4. Understand 36

II. Best- Practices 37


1a. Driving Awareness
1b. 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 44


to Redeem the offer upon Receipt

III. MMA Code of Conduct Guidelines 45

IV. Frequently Asked Questions (FAQ)_____________________________46

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32
An In-Depth Look at Bluetooth® Marketing

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 anywhere


else that additional information may be located on-web or on-premise.

Simply put, keep it simple.

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33
An In-Depth Look at Bluetooth® Marketing

2. Enrich

Captivating an audience requires an understanding of who that target audience


is and what get's their attention. The novelty of a Bluetooth® Delivery system
won'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 with
fresh 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 context
in which that offer is being promoted are essential to achieving maximum
impact.

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

Think of Bluetooth® as a Communication Portal as opposed to simply just


an Advertising Medium - Bluetooth® is a medium of exchange capable of
enriching the relationship between an organization and it's constituent
patrons.

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
34
An In-Depth Look at Bluetooth® Marketing

3. Be Honest
Make clear the full-extent of your intentions at every new opportunity to
connect with an individual customer.
If they should download a Bluetooth® ad for the sake of promotion that's
only 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 keep
up on the latest promotion.
No bait and switch campaigns. Tell them why they should turn on
their Bluetooth® and then let them decide if they want to.

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
35
An In-Depth Look at Bluetooth® Marketing

4. Understand
The better that we understand every element of the customer relationship to
both the promoting company and the specific campaign, the better prepared we
are to deal with the variety of needs that exist on both sides of the relationship.
Similarly, when developing a campaign think not only about who your target
audience is but think also about how they will perceive the engagement.
In the 20th Century, Advertising was almost always performed using "Shotgun"
techniques that hit anyone they came into contact with.
Today, we don't need to be quite so crude.
Instead, we can develop campaigns custom tailored to the individuals best
suited to respond to our calls-to-action.
Through our partners, QuaBLUE is prepared to perform market research
including on-line surveys, polls & even focus groups.
We are offering a new level of intimacy in communicating with on or near-
premise patrons.
Understanding the individual response to a given campaign is just as
important as the dollars that the campaign brings in.

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.
36
An In-Depth Look at Bluetooth® Marketing

II. Best-Practices

1a. Driving Awareness

In priming an audience to participate in a campaign, maximum exposure is


essential to achieving maximum results, though it is also important to ensure
that 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 radius
from a given point of transmission though on-site testing may be required to
confirm 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 on
the changing of the promotions; for instance, if we are communicating that the
Bluetooth® promotion is to receive "Today's Lunch Special" then this call can
also be fixed and the entire campaign is a single fixed banner (or digital/audio
announcement.) 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 up


connection 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.

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
37
An In-Depth Look at Bluetooth® Marketing

2. Delivering the goods

When performing a Bluetooth® Marketing campaign, it is important to rise to


the expectations that you set. Delivering an effective message is the best way to
capitalize on the initial increase in awareness. For every positive interaction
that your customers have with Bluetooth® Marketing campaigns, they become
that much more likely to reengage Bluetooth® Marketing on their return.

Additionally, the buzz that occurs as a consequence of both the novelty of the
experience and the value of the campaign itself offers a golden opportunity at
explosive viral marketing when Bluetooth® Marketing Technology is properly
utilized.

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
38
An In-Depth Look at Bluetooth® Marketing

3. Real-time Results Tracking

Decide on the length of the campaign, then track the results upon campaign
completion. Understand where and when the results spiked. Utilize this
information to better tailor your campaigns to the individual customers you're
targeting. When done right, the results should be ongoing improvements in the
marginal value of every campaign. This means higher ratios of people with
their Bluetooth® turned on, higher ratios of people downloading content and
higher 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.
39
An In-Depth Look at Bluetooth® Marketing

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 new
communication portal between business and the individual customer and that all
communications are 100% Opt-In. If someone doesn't want to be bothered with
on-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 terms
have 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.
40
An In-Depth Look at Bluetooth® Marketing

5. Using Green to boost PR

As an evolving protocol for communicating with the public, we recommend


that businesses interested in promoting the Green value of their Bluetooth®
Marketing Solution note the below facts:

1. Bluetooth® Marketing is a cost-saving solution


2. Bluetooth® Marketing is a paper replacement technology
3. Bluetooth® Marketing is 100% opt-in
4. Bluetooth® Marketing foregoes all of the standard hazards that are incurred
in 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.
41
An In-Depth Look at Bluetooth® Marketing

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 the
technology to the market-place. It is recommended that customer surveys be
incorporated 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 the
elements of a campaign that contribute to it's success.

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This information is Solely & Confidentially Disclosed by QuaBLUE to the Disclosed Parties and is NOT licensed for redisclosure without written permission.
42
An In-Depth Look at Bluetooth® Marketing

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 campaigns
run once every hour they will keep their Bluetooth® on if they are interested in
receiving regular promotions.

Remember, someone who has Opted-Out has done so only for the length of that
specific 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 achieving


high 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.
43
An In-Depth Look at Bluetooth® Marketing

8. Psychologically Preparing the Individual to Redeem the offer upon


Receipt (achieved in the communication of the initial promotion)

Prior to receipt (and upon receipt) the individual customer should be prepared
to 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 method


of delivering promotions and those promotions remain both engaging and
respectful, they will be more likely to act as directed.

Analysing, understanding and factoring-in the values of your individual


customers 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.
44
An In-Depth Look at Bluetooth® Marketing

III. MMA Code of Conduct Guidlines

The Mobile Marketing Association Code of Conduct provides some basic


Industry guidelines for performing Mobile Marketing Campaigns. While
these guidelines were originally intended for use deploying SMS & MMS
campaigns, they also apply to Bluetooth® Marketing Technology
Deployment.

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 promotional
materials from their cell-phone.

The second is a listing of Terms & Conditions that may be as simple as a few
lines of disclaimer at the bottom of the Signage where the initial call to "Turn
on 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's
stipulation 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 sent
anything more than a request.

3. Customization
As noted earlier in our Best-Practices section Discovering Trends via Surveys
we highly recommend customizing Bluetooth® Marketing contents for the
participation of specifically targeted individual customers.

4. Constraint
We make our best effort to keep every campaign relevant as per the
expectations of the end-user. Similarly, we highly discourage bombarding
people with ads and connection requests that only serve to annoy them. For this
reason, we strongly emphasize developing per-use protocols for scheduling
campaign programs to ensure that individual customers know what to expect in
the course of a set of campaigns.

5. Security
Many 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 that
we can access about the end-users phone is it's make, model and MAC address -
none of which is private data.

6. Enforcement & Accountability


When deploying our technology we work with our clients to develop protocols
for 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.
45
An In-Depth Look at Bluetooth® Marketing

IV. FAQ
1. Is Bluetooth® Marketing SPAM?

The answer to this question is NO! Most of us know SPAM as the dreadful
stuff 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 to
connect 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 receiving
information from us using Bluetooth®, simply turn your Bluetooth® off or set
your phone for 'Invisible" mode and we won't send you a single request to
connect.

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 to
compromise 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 in
making the use of Bluetooth® standard in the U.S. Bluetooth® Marketing uses
Bluetooth® as a Wireless Communication protocol for delivering information to
Cellular Phones within proximity of a point of transmission (100 meters in most
cases.)

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 2
years ago, you may need to check with your service provider or the
manufacturer 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 wireless


communication 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
phone is equipped with Bluetooth® it is free to 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.
46

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