Advertising on mobile or cell phones seems to be at the top of everyone’s agenda these days, no matter whether it be a start-up focusing their business plan around it or venture capital companies investing millions of their limited partner’s cash on this seemingly forever expanding golden market opportunity. Predictions abound that the market will grow into a multi-billion dollar market over the next few years and they are probably right, though market growth has proved to been painfully slow to date – some even say ‘glacial’.
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Much of the slow growth has to do with the challenges of the mobile phone as a platform as they still difficult to use with user interfaces designed by people who seem to have never used their designs. Accessing the mobile Internet is still a challenge for many and horror stories still abound about bills of thousands of pounds for downloading content while roaming.
Most users are still stuck in the quagmire of the GPRS performance – or lack of it – that can often be as lethargic as the first days of the Internet nearly twenty years ago. However, this is really beginning to change. The advent of Apple’s iPhone (and now its copycats) setting the mobile world ablaze with user interfaces par excellence and the roll-out of high-speed 3G data interconnectivity using HSDPA, CDMA or Wi-Fi really is beginning to make mobiles usable for accessing Internet based services. Dare I say that it is even beginning to be fun?
Mobile advertising is a broad church and includes many ways to engage and interact with elusive consumers including traditional graphic banner ads and ’splash’ pages on mobile web sites, SMS or MMS messaging or ad inclusion in mobile video or pushed content. The opportunities are endless and there are many companies offering aggregation, syndication and publication technologies and services to brands or agencies that wish to gain the attention of those individuals hooked on using their mobiles twenty four hours a day.
An interesting sector of mobile services are Location Based Services (LBS) – Location based services are alive and well. These are applications that enable the delivery of content or information based on a knowledge of the location of individual mobile phones. Locations are provided as a commercial service by mobile service providers. Location information is derived from triangulation techniques based on received signal strength and delays of an individual mobile phone wireless signal as it is received by multiple cell base stations. This enables the creation of map-based services that can provide the location of interesting near-by facilities such as ATM machines, bars or restaurants. This can also provide information about friends’ (or as Americans call them, buddies’) locations. This capability is often called ‘Presence’ and was covered in an earlier post – The magic of ‘presence’. For example, the service can tell a user whether their friends are physically close to their current location and would be willing to meet up. Linking this to a social networking service with an embedded instant messaging service enables the creation of some very innovative services.
A second interesting sector that currently has less visibility than Location Based Services is known as Proximity or Bluetooth Marketing (PM). Proximity or Bluetooth Marketing is a much more localised geographic basis than is possible with a Location Based Service as it uses either infrared, short-range Bluetooth (The Bluetooth standards maze) or Wi-Fi technologies installed on mobile phones. This involves setting up a Bluetooth based Content Server that can detect nearby mobile phones and interact with consumers who are enticed to ‘opt-in’ to received downloaded content.
As a consumer’s location is exceedingly local to the Proximity or Bluetooth Marketing Content Server, it is possible to provide content that consumer’s really do want to receive through the opt-in process. For example, the Proximity or Bluetooth Marketing service can be used to download purchased MP3 music or ringtones or images to place on the screen of the mobile phone.
It’s also possible to use Proximity Marketing to provide information – think about visiting a museum or art gallery and being able to receive information and background on each exhibit or painting on your mobile phone as you pass by. These are called Experiential Services.
Let’s get one thing out of the way before we go any further.
Is Proximity or Bluetooth Marketing just another form of SPAM?
Although Proximity or Bluetooth Marketing is quite well known within the advertising industry, it’s quite interesting to see the reaction of individuals who are outside of the industry when this subject is raised. Often, the off-the-cuff reaction is to say “That’s SPAM isn’t it?”. To me, this is clearly not the case. SPAM, as we all know it in our email in-boxes, consists of junk that no-one wishes to read or indeed open due to well-founded concern about viruses and malware. Moreover, it gets to my in-box whether I like it or not – there is no opt-out option with real SPAM.
Are banner advertisements on web sites created by advertising aggregators such as Google AdSense™ SPAM? No! Proximity or Bluetooth Marketing, cannot be considered as SPAM as it is always based on the consumer opting in to receive the information or downloaded content. Consumers really want to interact and download what is on offer. I really couldn’t explain it any better than as found in Wikipedia:
“It used to be the case that due to security fears, or a desire to save battery life, many users keep their Bluetooth devices in OFF mode, or ON but not set to be discoverable. Because of this, often regions [locations] where Bluetooth proximity marketing is in operation is accompanied by advising via traditional media – such as posters, television screens or field marketing teams - suggesting people make their Bluetooth handsets discoverable in order to receive free content. A discoverable Bluetooth device within range of the [content] server is automatically sent a message asking if the user would like to receive the free content.”
So, let’s put the idea that Bluetooth-based Proximity Marketing is SPAM to bed; consumers usually request to receive proximity based content because they actually want to receive it. Also, Proximity or Bluetooth Marketing is 100% legal. Don’t worry that the next time you walk past a billboard you are going to be inundated with unwanted SPAM as it’s much more likely you will actually want to see what is on offer and download it.
Few individuals will freely admit that they enjoy watching adverts and want them interrupting their daily dose of interacting with their friends through SMS or using their mobile based social networks. However, their attitudes can be easily modified through the use of incentives such as cash or money saving coupons and providing really interesting and innovative interactive advertising that really engages consumers.
One UK company that is very active in Proximity or Bluetooth Marketing is Hypertag Ltd.
Hypertag (1) (www. hypertag.com or www.myproximitymarketing.com) is based in Cambridge, UK and was pretty much the first company to offer Proximity or Bluetooth Marketing services starting in 2001.
Hypertag focuses on running Proximity Marketing campaigns for many of the world’s largest and well known consumer brands and advertising agencies (Top 100 Most Powerful brands). Hypertag is unusual in that it has not only developed its own specialist software but also an optimised Proximity Marketing Content Server called, not unsurprisingly, a ‘Hypertag’.
A Hypertag is a small dedicated computer that runs Hypertag’s in-house developed software suite and is effectively a wireless base station. A Hypertag can communicate with mobile or cell phones equipped with infrared or Bluetooth communication facilities. The Proximity or Bluetooth Marketing campaign content is stored in the Hypertag’s memory and can be updated in real-time if the Hypertag is connected to the Internet. The reason I say ‘if’ is that there are two types of Hypertag; a wearable Hypertag and a static Hypertag which are described below.
Wearable Hypertags
A wearable Hypertag is physically worn by campaign promotional staff so it could be called a ‘wearable computer’. The individuals who wear the Hypertag wander around events such as exhibitions and festivals and interact directly with visitors. For example, they could be giving away discount coupons or other promotional software or video clips. Specific examples of real Hypertag campaigns are described below.
From a technical perspective, content is loaded onto the Hypertag early in the day which is powered by a battery pack attached to the shoulder strap. Because promotional staff proactively interact directly with individuals throughout the event, the number of downloads can be very high.
Each time an opt-in transfer occurs, all the relevant data is recorded and a full analysis report can be provided to the paying brand manager. This is of crucial importance these days as brand managers have to justify every penny or cent spent on advertising and promotion.
Static Hypertags
Static Hypertags are powered by mains or line voltage rather than batteries and are usually embedded in interactive poster displays or video screens. As can be seen in the picture on the left, consumers are shown the content that can be downloaded in the poster. In this example, consumers are told to “activate Infrared on their mobile or cell phone and point it at a red spot” on the poster where they will be able to download a ring tone.
Importantly, because the Hypertag is in a fixed location it can be connected back to a central content management system called a Hyperhub so that content can be updated or usage statistics uploaded for consolidation with data from other deployed Hypertags running the same campaign.
‘Backhaul’ connectivity between Hypertags and Hyperhub can be achieved via the Internet using a USB port or local Wi-Fi. If Hypertags are located where neither of these options are available, they can automatically connect to Hyperhub according to a programmed schedule using a GPRS data link. Interestingly, this is more than often the case, especially if the Hypertag is located outside.
Proximity or Bluetooth Marketing Campaigns
According to Hypertag’s Commercial Director, Elaine Haines, Proximity Marketing is still seen as “a little bit edgy” by the big brands and is often not yet seen as a part of the “main stream”. This seems to be put Proximity Marketing into the same camp as other types of advertising on mobile or cell phones. According to Haines, many brands do have “champions” that understand the power of Proximity Marketing and see it as a “cool” method to really intimately interact with targeted consumer groups. It’s a no-brainer assumption that these groups tend to consist of the younger generation who seem to live their lives through their mobile or cell phones.
So even if Proximity or Bluetooth Marketing is seen as the ‘new kid on the block’, Hypertag seems to have achieved real success in driving forward Proximity marketing campaigns as they claim to have run some 400 to date either themselves in the UK or through their channel partners around the world. Typical Hypertag campaigns are generally not based on simple advertising but based on creative ways to engage consumers through experiential marketing. The most successful Proximity marketing campaigns are those that focus on providing content at locations that is closely associated with consumers’ interests. Examples of events that can lead to real one-to-one interaction with consumer are:
Exhibitions: Individuals usually attend exhibitions because they are interested in the subject matter. Therefore campaigns run at exhibitions provide content that is, by definition, of interest to attendees. One of the most active areas are the big automotive shows where all the car manufacturers are keen to get photographs or specifications into the hands of the attendees.
Music Festivals and concerts: Attending a musical festival in the middle of a wet field to listen to their favourite bands or groups is one of the favourite pastimes of the younger generation. Or they could be attending a fantastically expensive ticketed concert held at The O2 in London by one of the rock legends. Either way, every single attendee could be interested in downloading pictures, MP3 files or ring tones onto their mobile or cell phones. Campaigns based on wearable Hypertags can be particularly successful as such events as the wearer can directly interact with attendees gained through direct eye contact.
Museums, art galleries, gardens and visitor attractions: Visitors to such places are interested in receiving information about what they are viewing at any point in time. Visitors can be provided with background information of an item and maybe a little history to bring it alive. Moreover, visitors could download for free, or purchase, photos or other content related to the attraction that is of interest to them.
Bars, clubs and restaurants: Bars, clubs and restaurants provide ideal venues to run Proximity Marketing campaigns for the drinks industry that maybe include a voucher for a free drink or the ability to participate in a competition.
Shops, shopping malls and airports: Many such venues ban paper based advertising due to the mess that they can create so Proximity Marketing is a growing mechanism to interact with shoppers. Proximity Marketing Content servers can be placed near the entrance to tell shoppers about offers or special events. They can also be placed next to display screens and provide the ability for shoppers to download information about their favourite consumer product brands.
Taxis: Taxi passengers are a good target for mobile Proximity Marketing as they have the time available to interact with download offers from video screens within the taxi passenger compartment.
Typical downloaded content
Anything and everything can be downloaded from a Hypertag to a consumer’s mobile phone as long as the phone is capable of running it, playing it or displaying it. One of the considerations that needs to be taken into account are Digital Rights Management (DRM) and copyright issues. This is a complex area but content owners need to clear about the consequences of consumers forwarding downloaded content onto friends and colleagues. Of course, this may be the very essence of a campaign in trying to create a mass viral distribution of their content.
Examples of content downloaded in recent Hypertag campaigns are:
Ringtones and audio clips (MP3): Audio files can be downloaded for free or purchased including songs, jingles or podcasts.
Flash files: Product promotion animations or animated instructions.
Ringtones: Annoy fellow travellers or impress friends with ring tones of your choice.
Java Applications: Downloaded applications could include calculators, time managers, games, communications tools, Instant Messaging clients, social network applications, maps, widgets of all kinds, or other branded applications. The list is endless.
Vouchers and competitions: Very few of us can ignore an offer and one of the most popular forms of download is that of vouchers or competition entries to save money or win prizes on the spot.
Information and guides: In exhibitions it is possible to download information about a particular display. This could be in the form of text, voice or animations.
Video and animations, images and screensavers: The list of what could be downloaded is only “limited by your imagination” to use that old clichéd saying.
Reminders: These could be text based or an automatic insertion into a diary application.
In addition, the power of a Hypertag is that any combination of the above, with randomisation, serialisation and time-based changes of content on offer can be downloaded.
Running a Proximity Marketing Campaign
What steps are involved in running a Proximity Marketing campaign on behalf of a large brand owner or agency?
Content creation: The first step is to create the content that is to be downloaded. This is the world of the highly creative brands or agencies who try to find ways that will engage the consumer (and win them industry prizes). Clearly, there are limitations to what can be achieved due to the limitations of the mobile platform and the physical size of the content that can be downloaded. If a download takes too long the consumer will get bored and move on before the download can be completed.
Content formatting and personalisation: In the world of personal computers, it is relatively straightforward to create content that can be displayed on most of the computers as there are only a limited number of Internet browsers that can be used. However, even designing content to look the same on all leading PC browsers is a difficult enough task and achieving this on all mobile phones is virtually impossible. The reason for this is that nearly all mobile phones models are different in every possible way including, screen size, browser used, operating system and accessible features.
This was covered in previous posts such as Mobile apps: Java just doesn’t cut the mustard? and Content transcoding hits mobiles. Content files need to formatted into multiple forms and when a consumer connects to the Hypertag, the Content Server has to decide what the model of the mobile phone is and download the appropriate form for that particular model or decline the download request if the phone is not capable of running the content. The management and updating of a phone capability database or ‘fingerprint’ is a never-ending activity at Hypertag I would suspect. Things are helped in that Hypertag do obtain first-hand statistics of what mobile phones consumers are using to access content and this list provides early indications of what the latest fashions in phone usage actually are.
Delivery: In a deployed location, Hypertags continually interact with consumers’ requests to download content. The process of content download is monitored on an end-to-end basis and statistics are collected for each transaction.
Reporting: It is usual that multiple Hypertags are used in a single campaign. Hypertag campaigns could be located at the same general location, or at multiple simultaneous locations, or could run on different dates. Either way, statistics from all Hypertags running the same campaign are assembled into a report after the close of the campaign and forwarded to the brand or agency to enable them to assess the success of the campaign and justify their spend.
Example campaigns
Here are three examples of campaigns that Hypertag have run in recent years.
Ford Motor Company, The Sydney Motor Show, Australia: The posters, as shown on the left, invited the consumer to interact with the Hypertag using their mobile phone and receive free content. Consumers could interact with the Hypertags by activating the infrared or Bluetooth on their mobile and pointing it at the Hypertag. Consumers who did this were able download a range of content relevant to the type of car they were near; either the Ford Focus, Falcon, UTEs or SUV. Each Hypertag distributed content including videos, MP3’s, wallpapers and images in a random order. Phones that could not receive this content instead received an electronic business card.
The reasons for using Hypertags were to raise awareness of the launch of Ford’s new vehicles and provide a novel mechanic to allow people to download digital assets related to the Ford vehicles directly from the Ford stand. Ford benefited from 10,000+ interactions downloaded over 11 days from only four Hypertags.
Castle Lager, South African Test Matches: SAB Miller wanted to promote the Castle Lager brand at the cricket Test Matches in Durban and Cape Town by reinforcing visibility of their sponsorship of the events, rewarding brand choice and creating a dialogue with consumers. A team of promotional staff using ten wearable Hypertags invited consumers to interact with the Hypertag using their mobile phone. The promotion targeted attendees at two International Test Cricket matches.
In this particular campaign, consumers could randomly download a prize voucher, ringtone or wallpaper. Anyone interacting with the Hypertags had a 1 in 5 chance of receiving a prize voucher. The prizes were “One Run” – Free Beer, “Two Runs” – Key-ring bottle openers and Lanyards, “Four Runs” – Carabina Key-rings and “Six Runs” – Castle Back Pack. Mobiles that could not receive this content instead received an electronic business card. Castle Lager benefited from 18,000+ interactions over 8 days from 10 Hypertags.
O2’s iPod Touch Nationwide Promotion: O2 launched the iPod Touch in December 2007 and was looking for ways to improve the sales of the handset and create a buzz around the launch. In order to do this, they approached Hypertag. In addition to driving sales of the iPod Touch, O2 was also keen to promote the brand amongst shoppers and build brand awareness. This was a particularly complex project for Hypertag, not only as the promotion took place in 50 O2 retail outlets nationwide, but also because the whole project was organised in 4 days! O2 got in touch on the Tuesday and the campaign was rolled out on the Saturday.
Based on O2’s brief, the content mechanic employed was a simple yet effective one: anyone interacting with the Hypertags was able to download a discount voucher entitling them to money off if they purchased an iPod Touch. The added advantage of using Hypertag’s wearable proximity marketing solutions is that consumers can interact and download content completely free of charge and without giving away any personal data – unlike other mobile marketing promotions where phone numbers and other data is collected.
Benefit inventory
There are a high number of potential benefits to brands and agencies using Proximity Marketing as a component to their campaigns. A few that come to mind are:
Power of a ‘moment in time and place’: Proximity Marketing could be considered to be one of the most powerful ways to directly engage consumers in brand related content activities. It is possible to interact with a community of like minded consumers that have come together at a particular location at the same time. This combination of location and ‘moment in time’ enable the creation of a campaign that is focused and highly engaging with an almost guaranteed high uptake percentage.
Desired interactivity: Campaigns include desired interaction with consumers and active opt-in by the consumer based on relevant and wanted content downloads. Few other traditional advertising mediums have this ability – how many video screens did you walk past in last few days without remembering what was showing?
Free of charge: One of the big benefits for the consumer is that it is possible to download content – regardless of the target file’s size – free of charge without suffering the possibility of an ensuing large download charge. Of course, content download can be paid for if that is appropriate.
Integrated analytics and reporting: In these tough times, brand managers and agencies who pay for campaigns need to justify every penny spent on promotion based on a forecast of uptake included in the business case. Unlike traditional advertising, the use of Proximity Marketing can provide hard data relating to usage. Details of each download is recorded and if a campaign is executed using a number of Hypertags all this information is aggregated into a single report that is sent to the brand manager after the campaign finishes. Information can include a list of daily interactions, unique users, dates and times, mobile phone type used, voucher or prize report, utilisation and usage efficiency.
Roundup
Proximity or Bluetooth Marketing is not an uncomplicated business! Delivering advanced Proximity Marketing campaigns requires the use of specialist Content Servers running a specialist application software connected to a communications hub to coordinate and monitor campaigns. Also, content creation and campaign result analysis requires a multiplicity of proprietary applications and we shouldn’t forget the need to monitor what mobile phones are popular at any time and adapt campaign content to individual phones.
Proximity Marketing may still be considered to be at a relatively early stage of adoption by global brands and agencies but its future is undoubtedly bright. It has a clearly defined position in the world of promotion and campaigns that can provide benefits that are difficult to deliver using other traditional promotion techniques.
Perhaps, next time you see a poster or ’someone’ asking you to turn on Bluetooth, take a look around and you may be pleasantly surprised!
Addendums:
Hypertag have now launched a blog -http://mybluetoothmarketing.com/
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Take a look at Hypertag’s campaign work: |
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For an excellent overview of Hypertag take a look at ITNLocal’s short video: Cambridge firm at front of mobile revolution (Click the link at the foot of the page) |
(1) I would like to declare an interest in Hypertag as I am an adviser to the company.


Posted by Chris Gare 
In this vein, I’d like to take the opportunity to write about one company that has taken a highly innovative approach to address improved efficiency in next generation networking. Moreover, their business model is that of a service provider rather than a technology vendor. You don’t often come across a service provider that bases its business on internally developed and patented innovative technology, 
Importantly, this method of layer-1 dynamic bandwidth allocation does not require packet processing / switching at the backbone network interfaces but only at the access port’s bandwidth (e.g., avoids need for packet layer logic at 10Gbps ring interfaces in case of 1Gbps access, as well as avoids need for packet level logic for 100/160Gbps transport interfaces in case of 10/40Gbps access). This dynamic bandwidth layer-1 circuit based packet transport of ITN significantly, in the order of 10:1, reduces the cost of packet layer processing compared to the use of a traditional packet-switching networks, which need to process packets at the backbone line speed as shown in the diagramme on the left.
Innovative topology: A second opportunity for optimisation lies at a topology level. For example, take a simple closed 5-node network that is functioning as a service provider’s optical network. The requirement is that each node has a total traffic exchange capacity with other nodes of doubled 10Gbps, any breakdown of which aggregate between the four source/destination node specific connections needs to be dynamically supported (based on real-time inter-area traffic load variations) in order to not block revenue-generating traffic. As shown in the diagram, implementing this connectivity requirement with conventional, non-adaptive network physical layer, would require in total ten such bi-directional mesh connections, each of which would need to support 10Gbps in order to not limit the network throughput. The doubling of the mesh for protection purposes would require in total 20 such layer-1/0 connections, which conventionally would be mapped to 20 optical wavelength loops on a fibre ring.
Why should this be so? In this five site example, on any section of the 40Gbps OC-768 ring, both 20Gbps halves of the ring can support two individual 10Gbps STS-192 Adaptive-concatenation Multiplexer Buses (AMBs), each of which provides a dynamically optimised bandwidth STS-X circuit per each source node along the AMB to its destination node (ITN Interface Module, IM) and there are two destination nodes to be reached on any given ring section along either ring direction, as per the diagramme. Thus, with AMBs, non-oversubscribed any-to-any connectivity among five sites with 40Gbps of traffic exchange capacity at each can be provided over 20Gbps of ring capacity, and 40Gbps ring can support two such (protecting) AMB mesh networks.
Corporate, ASP, CDN or wireless service provider backbone networks: An OCS Adaptive-Mesh can be deployed for a application, information or communications service provider backbone or a corporate Wide Area Network (WAN) application over any fibre optic network and interconnect any layer-3 or layer-2 routers / switches of the customer.
Telecom service provider backbone network upgrades: With a service provider who currently owns at least some optical network capacity, the OCS’ Adaptive-Mesh will work as a self-operating optimisation layer, between standard WDM Optical Add-Drop Multiplexors (OADMs) and the edge routers. (Note: A service provider does not need to add any new equipment to their networks due to OCS’ Adaptive-Mesh based network upgrade, as OCS provides the Adaptive-Mesh connectivity as a managed service, not as an equipment vendor)
Resilient Packet Ring (
If you would like to learn more about OCS, visit their
Posted by Chris Gare
Posted by Chris Gare 

14:41 GMT, Monday, March 3rd 2008: If I have been a bit quite recently, this is the reason why. With no great drama we are pleased to say that we have gone live with the trymehere service – 
If your network strategy guys come from the ‘purist’ MPLS camp then it is clear that they will see MPLS being deployed both in the core and metro access network. However, MPLS is often now seen as an expensive and complex technology to maintain in real environments and this has prevented carriers from rolling out MPLS to the edge of their networks, often known as local metro-networks. A carrier usually has only one core network but often has many local access or metro networks which directly connect to their customers’ buildings and private LANs. If MPLS were deployed throughout this infrastructure costs could skyrocket.
If the above scenario is to pan out in practice, then carriers must be able to to seamlessly and transparently deploy and manage services across both technologies and this has been a real if not impossible challenge to date. This has much to do with the immaturity of PBB-TE technology and lack of compatibility with MPLS. For example, MPLS uses pseudowire tunnels for the transport of services across a core network, while PBB-TE uses E-LINE which has been defined by the
In the webinar, Dr. Ray Mota, Chief Strategist and President of 






I first came across true content transcoding when I was working with the first real implementation of a Video on Demand service in Hong Kong Telecom in the mid 1990s. This was based based on proprietary technology and myself and a colleague were of the the opinion that it should be based on IP technologies to be future proof. Although we lost that battle we did manage to get Mercury in the UK to base its VoD developments on IP. Mercury went on to sell its consumer assets to NTL so I’m pleased that the two of us managed to get IP as the basis of broadband video services in the UK at the time.
In the late 1990s the world was agog with the Internet which was accessed using personal computers via LANs or dial-up modems. There was clearly an opportunity to bring the ‘Internet’ to the mobile or cell phone. I have put quotation marks around the Internet as the mobile industry has never seen the Internet in the same light as PC users.
Personally I am against transcoding in this market and reason why can be seen in this excellent posting by 
Payforit is a cross-network mobile payment scheme. It is also called ‘trusted’ (but this needs to be demonstrated rather than claimed up front) because it has been set up as a collective initiative by all of the UK’s largest mobile operators – Vodafone, Orange, 3, O2 and T-Mobile.