trending the future: apple ibeacon
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Confidential and Proprietary space150 ©2013
presented by Marc Jensen
April 2014
Trending the Future: Apple iBeacon
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Who is this guy?
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I’m Chief Technology Officer + Managing Partner
at space150
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We use technology to create amazing experiences that connect
people to brands
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Our mission is awesome: Destroy Convention to Create Demand
(see more at space150.com)
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Okay, let ’s talk iBeacon
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What is iBeacon?
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iBeacon is a new technology created by Apple to enhance location
services for mobile devices.
image source: Apple
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iBeacon was created to enable your phone to do things when you’re
close to a specific location
image source: Apple
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iBeacon was created to enable your phone to do things when you’re
close to a specific location
like alert you when you’re in front of this Apple Store
image source: Apple
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So, why did Apple create iBeacon?
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Shopping habits and consumer expectations are
changing quickly
Shopping isn’t what it used to be
sources: New York Times, Business Insider, USA Today
Retail foot traffic is downFoot traffic is down 50% in three years from 2010 to 2013. !Online commerce is having a large and permanent impact on the traditional retail environment. !!!!!!
source: Wall Street Journal
E-commerce continues to growDigital sales are growing at the expense of offline sales. !“growth is coming from existing online shoppers who are spending more time and money - and in a wider variety of categories - online” !!!!!
source: Mashabl
Change brings opportunityIn all this change, there are bright spots. While traditional malls struggle, the Mall of America is set to double in size, as they focus on the destination and the experience. !Omnichannel retail serves the wants of consumers that expect a brand to be present across all physical and digital channels.
sources: Fortune / CNN Money, Forbes
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iBeacon was created to connect physical to digital
image source: Apple
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Let’s take a closer look at iBeacon and Location Services
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iBeacon was announced and released as part of iOS 7
image source: Apple
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The primary goal of iBeacon is to enhance location services
image source: Apple
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You may ask: “Isn’t my phone great at determining my
current location?”
image source: Google
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Yes and no, depending on what you’re trying to do
Location Accuracy
We have incredible maps and services on our phones, but they’re limited by the existing technology they’re built on. !When I took this screenshot, I was actually in the building across the street, on the second floor.
image source: Apple
Precision
It’s not Foursquare’s fault, but they just don’t know exactly where i’m at. !I’m in the space150 Minneapolis office, and it shows “90 ft away”. !Current technology is great for finding a building, but problematic after that.
image source: Foursquare
Location Tech
The accuracy of this is about 30ft (10m), much worse in buildings and urban areas. !This location is determined by a combination of GPS, Wi-Fi and Cell Triangulation.
image source: Google
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Let’s look at a real world example
Apple Store App
Apple has rolled out iBeacon to all of it’s 250+ US stores. !If you have the latest Apple Store app installed, you can experience this yourself by going to a physical Apple Store. !
image source: Apple
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When you’re close to an Apple store, you’ll see a push notification that serves two main purposes: !
Bring the proximity of the store to your attention Show you what’s possible with the combination of the mobile app and the physical store
image sources: Apple
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mobile payments genius appointments events + workshops
image sources: Apple
Specific Location
Once you’re in the store, specific areas will trigger notifications: specials, new products, or anything else they’d like to highlight about the area you’re in.
image sources: Apple
Digital Payment
You can easily pay for products using your iTunes account and existing payment information. !This is a powerful way for Apple to leverage existing digital payment methods.
image source: Apple
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Apple is using iBeacon to connect physical to digital, streamlining the
existing in-store experience
image source: Apple
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What are the important details of iBeacon?
Confidential and Proprietary space150 ©2013image source: Icomoon
iBeacon aims to improve location-based services through proximity.
Confidential and Proprietary space150 ©2013image source: Icomoon
Proximity and location are different, and the difference is key
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Mobile location is represented as a point and a radius of accuracy
image source: Google
Confidential and Proprietary space150 ©2013image source: Icomoon
Proximity is knowing that you’re close to a specific physical location
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Example: I’m in front of this coffee shop
image source: Colonial Warehouse
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Example: I’m at this display
image source: Martin Patrick 3
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iBeacon is not strictly limited to Apple devices
image source: Estimote
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this is an Estimote Beacon
image source: Estimote
iBeacon is not strictly limited to Apple devices
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How does iBeacon work?
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iBeacon is built on Bluetooth, the common wireless technology
image source: Bluetooth SIG
Bluetooth Low Energy
iBeacon is built using Bluetooth Low Energy, part of the latest version of Bluetooth hardware (version 4.0) !BLE is intended to use very little power, and has a realistic range of about 150 to 200 feet.
image source: Bluetooth SIG
Basic Example
You need a transmitter and a receiver. When a receiver detects a transmitter nearby, you can trigger an event. !The transmitter is a beacon, and it’s continuously transmitting a signal. !The receiver is an app on your phone that is looking for a beacon.transmitter
(“beacon”)receiver
(iPhone app)
image source: Icomoon
Proximity to a location
far beacon
receiver phone
near beacon
immediate beacon
With iBeacon, you can initiate actions that are appropriate for being in the “immediate vicinity,” “near,” or “far” from the beacon. These distances are not fixed, but are thresholds. Your specific needs, environment and hardware will determine this.
image source: Icomoon
Multiple Beacons
You can use multiple beacons in a single environment to trigger location specific events. !When an event is triggered, you can be confident about the proximity to the location. !In this example, beacons are at the entrance, in a department, and at the checkout counter, each can trigger appropriate events.
entrancecheckout
department
image source: Icomoon
App Required
iBeacon is opt-in. Users must have an app installed. !iBeacon functionality can easily be integrated into existing apps.
image sources: Apple
Beacons
Beacons are designed to be small, use little power, and last for a long time on small button batteries. !On the left is an Estimote beacon, they’re compatible with iBeacon, are $99 for 3, and last 1-2 years on the built-in battery.
Exposed
They’re simple inside - it’s basic bluetooth hardware and a battery. The actual devices themselves are built from simple components.
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Who is using iBeacon, and what are some uses for them?
Retail + Grocery
Safeway and Giant Eagle grocery are partnering with InMarket to roll out iBeacon to 200 stores.
image source: Techcrunch
Retail + Fashion
Shopkick plans to bring iBeacon to 100 American Eagle stores.
image source: Techcrunch
Sports + Entertainment
Major League Baseball is bringing iBeacon technology to more than 20 ballparks for opening day of the season 2014.
image source: Major League Baseball
Sports + Entertainment
The NBA and the Golden State Warriors are using iBeacon to target iPhone users. When guests arrive at the top of the escalators for the “nosebleed” seats, they’re immediately presented with an offer to upgrade their seat.
image source: Apple Insider
Automatic
Automatic is a bluetooth device that connects to your car to monitor and improve your driving (it’s like Fitbit for your car). !Automatic updated their device to operate as a beacon, opening the possibility for automatic payments (toll booths, etc).
image source: Automatic
Enhanced, more automated serviceMany apps benefit from location information. As an app creator, think about how this technology could benefit your app. !It used to be that you could determine that an app user was near your building - now we can know that a guest is in your store, or at a specific location
image sources: Google, Icomoon
Hospitality
Restaurants that offer ordering and pickup could improve the experience by notifying guest services automatically when customers actually arrive, streamlining the pickup experience.
image sources: Chipotle, Panera
Starbucks
Starbucks will be adding the ability to pre-order your coffee for pickup. !iBeacon would be the perfect technology to let the staff know a customer really has arrived and is in the store, and can also help initiate mobile payments, further simplifying that process.
image sources: Engadget, Starbucks
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Any competition? Yes.
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Apple first saw the potential of this tech, and created iBeacon. Other
companies are creating alternatives.
image source: Qualcomm
Android Support
Radius Networks is creating iBeacon hardware and software that allows Android to leverage very similar functionality. !The same exact hardware can be used for Apple iBeacon and custom Android (and other) platforms, simultaneously.
image source: Qualcomm
Qualcomm
Qualcomm launched it’s own version called Gimbal. The devices can be configured to work with Apple’s iBeacon, it’s own system, or work in other custom scenarios, across iOS and Android platforms.
image source: Qualcomm
Hospitality
Starwood is extending their existing mobile apps to allow hotel guests to open their room doors with Bluetooth powered phones and apps. !They’re testing in two locations now, and plan to support iOS and Android devices.
image source: CNN
Paypal Beacon
Paypal is launching the Paypal Beacon. !Using the same Bluetooth Low Energy technology, they’re building a custom version specific to their needs, to speed checkout at physical stores that accept PayPal. The proximity of beacons can help improve security and simplify the user experience.
image source: Paypal
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Let’s Summarize
Confidential and Proprietary space150 ©2013image source: Apple
iBeacon is a technology created by Apple that brings proximity awareness to mobile devices
Confidential and Proprietary space150 ©2013image source: Bluetooth SIG
iBeacon is built on standard Bluetooth technology
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Competing and custom alternatives are emerging
image credit: Qualcomm
Confidential and Proprietary space150 ©2013sources: Gigaom, Accenture, Washington Post, MITSloan
Consumers increasingly expect seamless digital to
physical experiences
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Physical and digital are no longer separate: it’s one big experience
image sources: Apple
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The concept is simple, but the details are very important
image source: Icomoon
http://www.space150.com/work
Reach out, we’d love to talk details !
Marc Jensen, Chief Technology Office + Managing Partner space150 Minneapolis, New York, Los Angeles
!marc.jensen@space150.com
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