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PROXIMITY MARKETING IN AIRPORTS & TRANSPORTATION The Proxbook Report The State Of The Proximity Industry Q3 2016

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TABLE OF CONTENTS Proximity adopters in airports and transportation

3

Proxbook executive summary

4

Proximity Solution Provider index

35

A message from the CEO & Co-founder

5

Innovation in hardware

38

What is proximity marketing?

6

Bluetooth adoption and the way forward

39

Proximity solutions in airports

8

Proximity sensors deployed globally

41

9

Beacon standards

42

For Proximity Solution Providers it’s all about the numbers

Proximity industry status

34

Introduction to proximity marketing at airports

10

Proximity products and services

43

Who is leveraging proximity?

11

Proximity software and technologies

44

Industry verticals

45

21

Proximity Solution Providers per country

46

Introduction to proximity marketing in transportation

22

Proximity Solution Provider categories

47

How can proximity solutions help?

23

Airport use cases

12-20

Proximity technology in transportation

Transportation use cases

25-33

Methodology

49

About Unacast

50

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PROXIMITY ADOPTERS IN AIRPORTS AND TRANSPORTATION Proximity solutions enables better traveler experiences

JASON COTTERELL Managing Director at Exterion Media UK.

“With 2.3 billion passenger journeys made on London buses a year, the partnership with Proxama creates an innovative platform for brands that want access to this hard-to-reach audience exclusively. The partnership also provides consumers with relevant, timely, and engaging content in an unobtrusive way. Not only can brands better target consumers, but the information collected will provide unique insights that will ensure future efforts are even more successful – allowing us to continue to make the everyday inspirational.”

“We have a limited scope of what value our data and our app can provide, so the reason for the development and deployment was to prove out how we can use beacons in an airport, and to see what kind of data we have, that has value. We have seen that the data generated has immense value, and so we want to figure out how we can manage and leverage that data to help partners, passengers and to grow more revenue for the airport.” RICK BELLIOTTI Head of Technology at San Diego International Airport

“By adopting Bluetooth in the Toronto Transit Commission, BAI Canada is looking forward to building upon the nation’s largest underground communication network by offering commuters more ways to stay connected. We’re excited to uncover new insights and discover how beacons can complement our Wi-Fi service TCONNECT by allowing apps to perform more dynamically based on their audience’s location.” KEN RANGER CEO at BAI Canada

“Our team works on the automation and optimization of operational activities. Having discovered an opportunity to count passengers' wait time in lines by the means of the Leantegra platform, we decided to give it a try. All hardware is installed and we started collecting the data from the aviation security and migration control zones. At this moment we are still in process of the system calibration and tuning, with an objective to retrieve the most representative data that can be VADYM DUBOVENKO used by the airport management to improve our operations in Head of IT Service at the future.” Boryspil Airport

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PROXBOOK EXECUTIVE SUMMARY

Exclusive insight to the proximity industry

Proximity market will be worth $52.46 billion by 2022

84% of global airports will be running a pilot or implementing beacon technology by 2019 according to SITA

Q3 was a record quarter for proximity sensors deployed globally with additional 3.5 million sensors adding up to a total of 11,770,500 sensors deployed globally out of which 7 million are beacons, 2.7 million Wi-Fi and 2.1 million NFC sensors

50% of global airports are planning to capitalize on beacon data within the next 3 years

Data monetization and proximity retargeting continue to be the fastest growing proximity services

Google Eddystone beacon adoption continues to spread with more than half of the industry players (55%) supporting the format

52% are willing to pay as much as 10% more if the travel would be paperless with real time updates

The app is not a bottleneck in transportation as 80% use their transit app two times or more during one day

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4

A MESSAGE FROM THE CEO & CO-FOUNDER

Proxbook is the world’s largest proximity directory

Dear all, Q3 was a huge validation period for the proximity industry as Market and Research forecasted the market to be worth $52.46 billion by 2022, mainly driven by proximity data availability and analytics. With an always connected customer base of travelers, proximity technology presents a massive opportunity for transportation providers to communicate with passengers in real time. We see that Airports & Transportation are definitely one of the most mature verticals in terms of understanding the value of proximity data. 50% of global airports are already planning to capitalize on mobile and proximity data.

THOMAS WALLE CEO & Co-founder Unacast

Transportation providers have done a great job in showing how proximity technology is not only about push communications. In the report you will find examples of how transportation providers are improving internal operations through connected employees and by getting to know the customers by analyzing the physical footprint. You will also learn how transportation providers are adding value to travelers by combining real-time information with location-based technologies. Hope you’ll enjoy the report! I look forward to your feedback. Best, Thomas

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WHAT IS PROXIMITY MARKETING? The cycle of proximity marketing

Beacons

Geofencing

NFC

Wi-Fi

Proximity marketing Proximity marketing is a granular type of location-based advertising, where the communication with the consumer is timely, relevant, and personal. This can be in form of beacons, NFC and Wi-Fi. Other location-based technologies, like GPS (lat, long) are often inaccurate and do not work indoors like proximity technologies.

Mobile communication To succeed with proximity marketing, you need to provide value to the customer while ideally aligning with an overarching marketing strategy. The value provided can be anything from personalized messages sent to the user, indoor mapping and navigation to help consumers find places of interest, among others.

Retargeting & Attribution Retargeting - When the client has left the venue it is possible to retarget them, continuing the communication that was initiated at the venue. The retargeting ad is shown when the customer surfs the web or uses their favorite apps. Attribution - After the customer has been exposed to the ad, one can measure attribution. Did the customer return to the venue as a result of seeing the ad?

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Monetization The interaction between the customer and the proximity sensors generates value that can be generated through monetization of the data. The demand for proximity data is higher than ever, as marketers are increasingly more aware of data accuracy challenges that GPS possesses.

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HELP US SPREAD THE WORD Our goal is to educate the world on proximity and if you find the report useful, you can contribute by spreading the "Word of Proximity" by hitting the share button!

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READ UP ON PREVIOUS REPORTS Q2 Report: Sports & Events

Q1 Report: Retail

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PROXIMITY SOLUTIONS IN AIRPORTS All use cases seen in the Report have been provided by Proximity Solution Providers that are members of Proxbook. Proxbook contains over 150 proximity use cases. These can be accessed on www.proxbook.com

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FOR PROXIMITY SOLUTION PROVIDERS IT’S ALL ABOUT THE NUMBERS

U.S. airports have more visitors than retailers, theme parks and stadiums combined

Entrepreneurs developing location and proximity solutions ideally need business plans underpinned by a focus on large markets with users that have money to spend and who carry smartphones. Airports are a venue that embody all of these qualities.

STEPHEN STATLER Author of Beacon Technologies: Hitchhiker’s Guide to the Beacosystem Book

AVG YEARLY VISITORS TO TOP 10 VENUES 61 million

The top ten airports in the U.S. average 61 million passengers a year, more than twice that of the top 10 shopping malls (27 million). The top theme parks (11 million) and stadiums (3 million) don’t even come close. Considering the demographics of air travelers, 89% of them carry smartphones. Why? According IATA, people earning high incomes travel 37 times more often than low income earners.

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27 million

11 million 3 million Airports

Retail

Theme parks

Stadiums

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INTRODUCTION TO PROXIMITY MARKETING AT AIRPORTS Airports are getting smart with data

2015 was a record year for airports with passenger numbers for international travels up by 6,3%. An airport is a large ecosystem of different companies and moving parts, starting from all the airlines and ending with different concession stands. To maintain all the bits and pieces, technology plays a central role in the entire ecosystem. As the number of passengers increases it is a priority for airports to make sure customer satisfaction is going in the same direction. However, crowded spaces, navigation, baggage issues and service delays continue to be the top concerns, lowering passenger satisfaction.

35% of top 20 U.S. Airports have deployed beacons

In the smartphone era where 89% of the travelers carry a smartphone, proximity technology like Bluetooth and Wi-Fi are reinventing the industry, as the combination enables airports to provide indoor wayfinding, luggage tracking, real-time flight information and other real-time location based notifications. 35% of the top 20 U.S. airports have already deployed beacon technology and 84% of airports are planning a sensor deployment in the next three years. Proximity technology also opens up a new revenue stream for airports and 50% of airports are already planning to capitalize on proximity data.

84% of Airports are planning a sensor deployment in the next 3 years

50% of Airports are planning to capitalize on proximity data

Security is key on the way forward and proximity solution providers looking to focus on airports will have to be able to provide sensor technology with secure and rolling IDs amongst other safety measures. Another challenge in order to achieve scale is about how well app owners (airlines) and sensor infrastructure owners (airports) can work together, as customers are reluctant to download each airports own app.

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WHO IS LEVERAGING PROXIMITY?

35% of the top 20 airports in U.S. have already implemented beacons

Newark Liberty international

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SAN DIEGO INTERNATIONAL AIRPORT

TECHNOLOGIES USED

GEOGRAPHY United States

Use case by Spark Compass

Beacons Geofencing Wi-Fi

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY Enable better traveler experience Improve operations and staff efficiency Increase revenue Next step: Expand the solution to assist the user starting from their home, to the curb at the airport, throughout the departure airport and finally at the arrival airport.

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OBJECTIVE: Enhance traveler experience, improve operational efficiency and find new revenue a stream The San Diego International Airport wanted to create a solution to improve the traveler journey and they had need for an app for internal purposes. The motivation for deploying beacons was to enhance the customer experience initially, and it began by having a focus group of 60 employees who participated in the beta phase. Apart from the obvious, the beta phase had a very interesting objective: What kind of data can one generate through beacons and how can it benefit the airport, the partners and the passengers? It took almost a year for the airport to figure out all the different use cases and details until they were ready to launch the commercial deployment. The beacosystem The use case is a perfect example of the macro and micro location technologies combination, where the communication starts before arriving to the airport. Directions and travel time to specific sections at the airport is enabled through the app. Geofences near the airport enhance and deliver features near the airport, Proxbook is a service provided by Unacast

with beacons at parking structures and on buses. The proximity deployment serves the entire ecosystem of the San Diego International Airport: travelers, airlines, concessioners and the airport itself. Travelers can use the flight information feature on the AwayYouGo app to receive timely and relevant messages about their schedule, weather and luggage. If passengers are looking for their gate or another place of interest, the Spark Compass platform leverages Apple’s indoor positioning technology to allow bluedot wayfinding in both iOS and Android apps. The app shows waiting times for the ticketing lobby, security checkpoints and taxi lines. It enables you to reserve a parking space, rent a car and keep track of your luggage.

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SAN DIEGO INTERNATIONAL AIRPORT

TECHNOLOGIES USED

GEOGRAPHY United States

Use case by Spark Compass

Beacons Geofencing Wi-Fi

BRANDS INVOLVED

SOLUTIONS BY

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OBJECTIVE: Enhance traveler experience, improve operational efficiency and find new revenue a stream For concessioners, there is a chance to tap into the sensor infrastructure by leveraging their own app or using the San Diego International Airport app. The brands can then communicate relevant offerings through the app which provides the airport a new revenue stream which was not possible before.

SUMMARY Enable better traveler experience Improve operations and staff efficiency Increase revenue Next step: Expand the solution to assist the user starting from their home, to the curb at the airport, throughout the departure airport and finally at the arrival airport.

Internal communication The beacon-enabled app also serves as a tool of internal communication, initially within the IT department. For instance, when a scanner gate at the airport goes down, the usual protocol is to call the IT department who will then try to find a person that is on duty and who is near. Instead, IT personnel now wear a Samsung Gear S2 watch, which is connected into the beacon platform. Every time there is an IT-related issue, the nearest person on duty gets notified, a ticket is generated in the existing enterprise IT workflow management system.

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The San Diego International Airport represents the first time that a common beacon installation is able to provide location and bidirectional communication to four types of stakeholders, all integral to the success of the system: the travelers, the airport, its merchants, as well as leaseholders like airlines and gate operators. For the future The next step is to have the AwayYouGo app live that enables a seamless user experience to flow from any connecting airports through to the arrival airport. This way the traveler will have a uniform experience that carries along her from home, to the airport, throughout the departure airport – all within one app. Spark Compass is already installed at other venues across cities, so the seamless traveler journey across a complete city is soon a reality.

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BRUSSELS AIRPORT

TECHNOLOGIES USED

GEOGRAPHY

Use case by In The Pocket

Belgium

Beacons

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY An operational win: Passengers arrive on time A commercial win: Passengers are at ease and can use their remaining time to shop. A customer win: Travelers are informed step-by-step, making the trip a lot more enjoyable.

OBJECTIVE: Get to know passengers and end pre travel stress

Gateways to personal information In The Pocket installed over 150 beacons at entrances, check-ins, screenings, shops and gates across Brussels Airport. They push information to the traveler’s smartphone, based on the exact location. The app will help passengers track flights, check gate changes, find the conveyor belt that's holding their luggage or calculate the cheapest parking fare in the area. Through the HARALD platform, Brussels Airport Company (BAC) in turn gets an overview of their beacon campaigns, the interaction rate and the overall data. It allows them to analyze their customer behavior (such as passenger flows, heat maps and dwelling times) in a more efficient and direct way. It also enables them to send customers vouchers and in-store coupons with promotions and discounts at the right time.

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Airport 3.0 For this project, In The Pocket used bigger type of beacons, ensuring battery life to last several years, and aiming for Airport 3.0. By the end of 2016, HARALD will enable their new context aware app that can inform passengers on 3 different dimensions: flight, time and location. To communicate with travelers, the beacons activate interactions at the exact right moment and place: the feature showing queue time at the check-in disappears immediately as that check-in is passed. So the contextual feed updates and changes constantly, avoiding unnecessary or outdated info for each and every visitor. Notifications are only pushed when the gates open. Still got two hours to go? You will get info on shops and retailers nearby. Your plane takes off in five minutes? Commercial messages disappear and info focuses on you catching your flight on time.

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TRACK&GO SAMSONITE

TECHNOLOGIES USED

GEOGRAPHY

Use case by Accent Systems

Worldwide

Beacons

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY In 2014 alone, more than 24 million pieces of baggage were lost. More than 1 million was never recovered The luggage can be flagged as lost and the app leverages its user base to help the owner find it The user can easily check the location of the luggage within a distance of 70 meters, and will be notified if it is being moved closer or further away from the user

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OBJECTIVE: Keep track of luggage and never lose it

Never lose your luggage with Track&Go Travelers spend their lives discovering new places and meeting new people from all around the world. It can be such a wonderful experience, but sometimes it can turn into a disaster when your luggage gets lost. In 2014 alone, more than 24 million pieces of baggage were lost. Fortunately, 95% of them were found and returned to their owners. However, that leaves more than 1 million items of baggage that have never been recovered. Samsonite has introduced Track&Go, the definitive solution to easily and privately find your lost luggage. In this project, Accent Systems acted as a hardware partner for Samsonite, the world’s leading luggage brand. In The Pocket was the developer of the app.

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This launch represents a turning point in respect to the existing smart suitcases in the market, due to the fact that it is the first one that uses Eddystone-EID (Ephemeral ID) to securely locate lost luggage, thanks to the open beacon format from Google. Accent Systems has built the Bluetooth Low Energy beacon inside the suitcase which uses the new open Eddystone frame type, the Ephemeral Identifier (EID), recently released by Google. In a traveling context, this will help quickly recover luggage without taking the risk of being identified by malicious third parties. All that the traveler has to do is register as the owner of the luggage on the Travlr app from Samsonite, allowing it to start sending encrypted and rotating IDs.

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TRACK&GO SAMSONITE

TECHNOLOGIES USED

GEOGRAPHY

Use case by Accent Systems

Worldwide

Beacons

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY

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OBJECTIVE: Keep track of luggage and never lose it

How it works If the luggage goes missing, the owner can flag it as lost on the Travlr app. After this, Travlr leverages its user base to help the owner find it. When other users come within 70m of the lost item, the app picks up the luggage’s EddystoneEID, an encrypted signal which makes is impossible to track by third parties. This triggers a notification, which specifies the time and exact location of the suitcase, to be sent out only to the luggage’s registered owner.

Users can easily check the location of the suitcase within a distance of 70 meters and also be notified if it is being moved closer or further away from the user. Thanks to Eddystone-EID, it’s already possible to establish a secure connection between lost luggage and the app installed in other user’s smartphones. This helps the owner to easily find their belongings and reduce the stress of travel.

In 2014 alone, more than 24 million pieces of baggage were lost. More than 1 million was never recovered The luggage can be flagged as lost and the app leverages its user base to help the owner find it The user can easily check the location of the luggage within a distance of 70 meters, and will be notified if it is being moved closer or further away from the user

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BORYSPIL INTERNATIONAL AIRPORT

TECHNOLOGIES USED

GEOGRAPHY

Use case by Leantegra

Ukraine

Beacons

BRANDS INVOLVED

SOLUTIONS BY

Wi-Fi

Page 1 out of 2

OBJECTIVE: Enhance traveler experience, improve operation efficiency, marketing campaigns Leantegra real-time location system (RTLS) solution collects non-personified data via BLE and Wi-Fi from smart devices (smartphone, tablet, etc.). The system allows to detect the devices and identify the passengers’ routes in all mapped locations.

SUMMARY The deployment allows to detect devices and identify the passengers’ routes in all mapped locations. Enables measuring dwell time a passenger spends in a particular zone Performs passenger calculation in a structured, mixed or priority service line

RTLS enables measuring dwell time, which is the time a passenger spends in a particular zone. Leantegra’s solution calculates passenger count in a structured, mixed, or priority service line and queues that are not included into the servicing zone. In the portal, a user can generate real-time and historic data reports, like: location popularity, new/returning visitors, average dwell time, etc.

Purpose of implementation 1) Improve effective planning and optimization of airport operational activity and enhance personnel efficiency based on data-driven location analytics. 2) Reduce passenger wait times in order to improve customer experience and grow passenger loyalty. 3) Provide advertisers and tenants with information about sales forecasts considering the foot traffic volumes detected in a particular zone. 4) Optimize offline ad placement, finding the best spot for its exposure, based on maximized visibility (a zone with a large number of impressions).

User can generate real-time and historic data reports, like: Location popularity, new/returning visitors, average dwell time, etc.

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17

BORYSPIL INTERNATIONAL AIRPORT

TECHNOLOGIES USED

GEOGRAPHY

Use case by Leantegra

Ukraine

Beacons

BRANDS INVOLVED

SOLUTIONS BY

Wi-Fi

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OBJECTIVE: Enhance traveler experience, improve operation efficiency, marketing campaigns 5) Perform efficient rental property calculation taking into account foot traffic information and the most popular routes. As a result, this data will enable the airport management to elaborate a clear and easy-to-understand list of rates for all rental property zones.

SUMMARY The deployment allows to detect devices and identify the passengers’ routes in all mapped locations. Enables measuring dwell time a passenger spends in a particular zone Performs passenger calculation in a structured, mixed or priority service line User can generate real-time and historic data reports, like: Location popularity, new/returning visitors, average dwell time, etc.

2. Improve customer experience and enhance personnel efficiency by measuring and influencing passenger wait time. The full deployment will:

6) Capture passenger indoor routes and identify areas with beneficial location that can be used for shops, cafes and other amenities.

Predict the wait time for the passengers who have just joined the line, and inform them via display boards, website and mobile apps about the real timing for a particular service.

Plans for the future The following scope will be implemented under the full deployment stage:

Allow passengers see the wait time for the previous periods, so they can plan their time accordingly.

1. Display interactive passenger route maps with problem areas highlighted to improve the process of ‘line’ management. These features will accelerate the reaction time to any problems/delays occurring in the passenger servicing zones.

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MUNICH AIRPORT

TECHNOLOGIES USED

GEOGRAPHY

Use case by Favendo

Germany

Beacons

BRANDS INVOLVED

SOLUTIONS BY

Wi-Fi

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OBJECTIVE: Value to tenants and clients, comfort and convenience for travelers and discover a new revenue stream Airports are growing Over the last few years airports seems to have changed to big shopping malls with aeronautical services. Airports are making a proportion of revenue from non-aviation land leases, rental car charges, and retail space fees.

RESULTS As a result of pushed notifications to the visitors of the VIP lounge, the number of website visitors on the air carriers online shop had tripled in the first seven days after the launch 33% click-through rate for push notifications

One of the biggest growing markets in airports is automated retail units. Selling products from everything from hair care products to the latest technology. Parking fees and terminal concessions directly follow airline terminal space rentals and landing fees. Therefore, Munich Airport was very interested in offering its tenants the most attractive environment to do better business and asked for a showcase that summarizes proximity marketing.

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Favendo built a beacon infrastructure in the car park of Germany’s second largest airport. They also equipped the VIP lounge of one air carrier with proximity beacons. Enabling the mailing of vouchers, the transmission of baggage carousel information and travel information like gate and waiting periods.

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MUNICH AIRPORT

TECHNOLOGIES USED

GEOGRAPHY

Use case by Favendo

Germany

Beacons

BRANDS INVOLVED

SOLUTIONS BY

RESULTS As a result of pushed notifications to the visitors of the VIP lounge, the number of website visitors on the air carriers online shop had tripled in the first seven days after the launch 33% click-through rate for push notifications

Wi-Fi

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OBJECTIVE: Value to tenants and clients, comfort and convenience for travelers and discover a new revenue stream External and internal benefits The installed hardware includes 120 “bluloc Big Bays”. These “power beacons” inhabit an extremely powerful lithium polymer AA battery and make the transmission of signals possible for distances up to 100 m. As for the special security needs of an airport, Favendo could guarantee secure signal encryption by the beacons via “rolling key” and compliance with the latest german fire protection standards. For visual reasons they adjusted “invisible” mountings. The beacons also enable to“sniff” WLAN and Bluetooth-data within the reception radius. The data that can be collected includes timestamps for entering and leaving a defined zone. As a result, it is possible to measure visitor streams without the visitors using an app.

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The technical infrastructure enables Favendo to implement a multilingual turn-by-turn indoornavigation and a car finder for the car park. The operators also asked for proximity/zone location based content and the possibility to analyze and visualize the obtained data. The backend system makes it easy to rent out the infrastructure to airlines, concessioners and car rentals. All services were integrated into the showcase app and also into an SDK that was integrated in a third party application provided by the air carrier. As a direct result of the pushed notifications to the visitors in the VIP lounge the number of website visitors on the air carriers’ online shop had tripled in the first seven days. Every third push resulted in visiting the website.

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PROXIMITY TECHNOLOGY IN TRANSPORTATION All use cases seen in the Report have been provided by Proximity Solution Providers that are members of Proxbook. Proxbook contains over 150 proximity use cases. These can be accessed on www.proxbook.com

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INRODUCTION TO PROXIMITY MARKETING IN TRANSPORTATION Proximity solutions have a lot of potential in transportation In New York City, the transportation company Metropolitan Transportation Authority (MTA) reported an annual ridership of almost 2.5 billion transit passenger, with a total annual ticket revenue of 7 billion in 2015. The main challenge for transit riders in New York is that tickets needs to be bought through a ticketing machine before being able to enter the transportation. This leads to long queues and waiting lines in the busiest periods of a day. There’s also little real-time information available, making the traveling even more challenging. There are a lot of everyday commuters which puts emphasize on reducing queuing, scheduling of transport and the need for real-time information.

80% of U.S. transit riders willing to pay more per ride if it’s paperless

80% use their transit app two times or more during one day

Transit agencies are looking to reduce the production and cash-handling costs. New York MTA prints and encodes 160 million cards a year, at an average annual cost of about $9.5 million. One ticket machine alone costs approximately $50.000 and carries with it additional maintenance and repair costs. According to research “Transit Mobile Payments: Driving Consumer Experience and Adoption” and an “Exploratory Analysis of Transit App in New York City” transit riders want to make their traveling easier, allowing transit companies to be innovative when delivering new technological solutions: 80% of U.S. transit riders indicate that they would be willing to pay more per ride for a completely paperless journey. Over 75% would pay more if they could use their smartphone for ticketing. 52% would pay at least 10% more for travel if they were offered technological enhancements such as the ability to use smartphone as a ticket while traveling. 80% of the users checked their transit app two times or more during one day to plan their trips.

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Transit companies can cut costs by enabling smartphone ticketing

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HOW PROXIMITY SOLUTIONS CAN HELP

Real-time Information reduces perceived wait times by 30% Proximity solutions can help transit riders have a more pleasant travel. Bus riders in Seattle, Washington, who used mobile real-time information before arriving at a stop waited approximately two minutes less than other riders. Their perceived wait times were approximately 30% less than riders who did not use real-time information. As public transportation can be unreliable, real-time information will help riders plan their trips better and reduce both perceived and actual waiting time. Integrating smartphone apps with ticketing and allowing brands to tap into a sensor infrastructure with real-time information from beacons has a lot of potential. This enables marketers and brands to communicate with transit riders and send relevant offers and promotions when they are on or near the transportation.

Use real-time information to decrease wait time

In larger stations it can be a challenge to navigate around. The platform from where the transportation were supposed to go could change, riders might be in a hurry but need to find a specific place of interest before leaving. Proximity technology can help the riders by using indoor navigation showcasing real-time information of their transport, what platform the transportation is leaving from, and enabling them to find places of interest around them.

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Increases satisfaction among transit riders

Helps transit companies to increase the ridership

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FUTURE AND PREDICTIONS Increase revenue and cut costs

As 80% of U.S. riders are already

New York’s Metropolitan Transportation Authority (MTA) could increase their annual revenue by as much as $350 million when increasing the ticket price as little as 5%

willing to pay more per ride for a completely paperless journey, and 52% would be willing to pay at least 10% more

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TECHNOLOGIES USED

MAPWAY

GEOGRAPHY

Use case by Proxama

United Kingdom

Beacons

BRANDS INVOLVED

SOLUTIONS BY

Page 1 out of 2

OBJECTIVE: Real-time travel updates, contextual in-app ads

In March 2016, Proxama launched the UK’s largest iBeacon experience across 500 buses throughout London. In partnership with Exterion Media, Europe’s largest privately owned out–ofhome advertising business, utilising Mapway’s Bus Times London app. Available across both Android and iOS platforms, the service reaches a consumer audience of half a million.

RESULTS 45% unique Clickthrough Rate (CTR) on utility led notifications (28% without beacons) 9 – 15% CTR across interstitial adverts served (1 - 2% without beacons) The average London commuter spends £44 a week buying merchandise during their daily commute

By integrating Proxama’s beacon Mobile SDK into their Bus Times London app (Android & iOS), Mapway is currently deploying a utility-led consumer engagement experience to bus passengers in London. The experience is delivered across beacon-enabled buses, which is underpinned by Proxama’s TapPoint® beacon campaign and management platform.

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Room for brands to engage consumers Bus travel in London accounts for more than half of all bus journeys in the UK and the average journey time is 17 minutes. Brands are using the service to engage with consumers via their mobile whilst experiencing moments of dwell. Those passengers are more inclined to engage with beacon notifications and contextually relevant advertising (the average London commuter spends £44 a week buying merchandise during their daily commute - The Centre for Economics and Business Research). Mobile advertising is increasingly playing a more central role in marketers plans and budgets. With consumers increasingly using mobile devices to browse the internet, there remains a large untapped opportunity to reach those (who want to be reached) using mobile devices as the browsing tool of choice.

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TECHNOLOGIES USED

MAPWAY

GEOGRAPHY

Use case by Proxama

United Kingdom

Beacons

BRANDS INVOLVED

SOLUTIONS BY

Page 2 out of 2

OBJECTIVE: Real-time travel updates, contextual in-app ads

In 2015 mobile ad spending accounts for 49% of digital ad spending. With this widespread adoption and the advent of ad blockers, comes increasing consumer pressure to eliminate spam advertising. Ad publishers need to find innovative solutions to improve ad targeting by making it relevant and consumable.

RESULTS 45% unique Clickthrough Rate (CTR) on utility led notifications (28% without beacons) 9 – 15% CTR across interstitial adverts served (1 - 2% without beacons) The average London commuter spends £44 a week buying merchandise during their daily commute

When users are presented with new technology, two key factors influence their decision about how and when they will use it: perceived usefulness and perceived ease of use. With mobile phones used as a personal device, Proxama had a challenged to ensure that they could enhance an app users’ experience, provide relevant information, avoid offending by going against what a user values (avoiding spam) and ensure credibility.

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Objective The objective was to leverage Transport for London’s API already used within the app and integrate with a large transport based iBeacon network. In order to target those who have the time and propensity to engage, whilst turning the concept of ads as being detrimental and intrusive on its head. This in-app locationserved-advertising aims to ensure the ad is relevant and valuable to the person interacting based on their location and that they are experiencing a period of dwell (traveling on a bus).

26

TECHNOLOGIES USED

SYNTUS

Use case by Kontakt.io

GEOGRAPHY

Netherlands

Beacons

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY Granting users access to mobile ticketing, digital timetables and planners Connecting commuters with local offers throughout their journey The app is in regular use around the country

OBJECTIVE: Encourage scheduling of journeys, reduce rush hour congestion, send local offers and promotions 3,000 Beacons Used to Drive Off-Hour Traffic Whether they are used for push notifications or indoor navigation, beacons are becoming increasingly common in public transport. When used creatively, they can benefit commuters greatly. In hopes of creating a more modernized public transit system, Syntus, the leading public transport operator in the Netherlands, turned to Kontakt.io. Over 3,000 Kontakt.io Tough Beacons were installed across the country, making this the largest integrated travel solution in western Europe to date. Previously, travelers used magnetic cards for their journey but Syntus found the technology could not support a broad, mutually beneficial loyalty program. They decided to leverage Kontakt.io beacons and create a more connected system that quickly became popular with travelers. Syntus wanted their solution to address one key problem: rush hour traffic. Overflowing busses and trains can create serious issues for service Proxbook is a service provided by Unacast

providers and travelers. Thanks to the beacon infrastructure, customers can now gather points and rewards just by traveling outside of peak hours. This means both a more positive experience for commuters and a more manageable transport system. Now, Syntus is preparing to take the next step. While beacons have proven invaluable in creating a loyalty program, their true long-term use is in data generation. The beacon network is a perfect tool to gather rich records on how visitors travel. That data can be used to evaluate bottlenecks, opportunities, and create a system that offers even more value to travelers. Western Europe’s largest integrated travel solution may already have plenty of fans, but it is far from complete. Newly generated data will continue to help Syntus optimize the system and create a more enjoyable experience for their customers. Commuters will have to wait and see just what that data can do.

27

SWISS FEDERAL RAILWAYS

TECHNOLOGIES USED

Use case by Infsoft

GEOGRAPHY

Switzerland

Beacons Geofencing Wi-Fi

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY “My Station” app helps passengers to find their way through multilevel Zurich main station The app suggests the ideal way to the chosen platform and also considers barrier free routing Passengers can find points of interest, like restrooms, cash machines, shops and restaurants in an interactive map that guides passengers via turn-byturn navigation

OBJECTIVE: Enable navigation within the station, showcasing places of interest, send local offers and promotions Everything does not always work according to plan when traveling. Has there been a platform change or delay? Departure from platform 12. Or was it platform 21? The “My Station” app by Infsoft can help in these situations. By the means of indoor navigation, the passengers can find their way within the largest railway station in Switzerland, Zurich main station. At any given time they can access up-to-date arrival and departure times and receive a message in case of a change. An interactive map of the building shows all important points of interest such as cash machines, rest rooms, ticket counters and lets passengers navigate there. Merchants can present themselves in detail and display location based ads. The map data can also be used with all relevant information as a terminal solution on-site. The services are available to customers via smartphone app (iOS/Android). Indoor positioning is possible with accuracy of a few meters.

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Retail Features Large railway stations offer a lot of shops and services – in most cases on different floor levels. The digital strategies of the retail sector, for example location based marketing combined with indoor navigation, increases revenues and offers clients many advantages. With locationbased marketing, store owners can reach their target groups even better. Additional purchase incentives can be displayed via coupons and push notifications, dependent on the user's location and interests. Within the app, all relevant shops on the travel chains path are displayed. The “Around me” function provides an overview of all shops in the user's environment. Perfect for the waiting time. The functions Interactive map, Shops and services, Services and parking at the station, “Around me” function, Meet friends, Walking tours, Special offers/couponing, Events at the station, Chat with employees, Departure tables.

28

AUTOLINE INSURANCE GROUP

TECHNOLOGIES USED

Use case by Accent Systems

GEOGRAPHY Northern Ireland and broader UK

Beacons

BRANDS INVOLVED

SOLUTIONS BY

OBJECTIVE: Monitor drivers behavior on the road, rewarding the driver with premiums

The better you drive, the more you save Are you a good driver? Can you imagine being rewarded for your insurance company each month you’ve had a fancy drive? The only two things needed are a device that assists in monitoring driving patterns and a car insurance willing to do it. It’s called “ChilliDrive” and it is found in Northern Ireland and the broader UK market.

SUMMARY The beacon allows Autoline to track all their drivers' behavior Placed in each car and paired with the “ChilliDrive” app Monitor the behavior of their clients on the road and records how well they drive Rewards the driver with lower premiums; so the better they drive, the more they save

It is a project of Autoline Insurance Group, one of the fastest growing financial services companies, offering a broad range of insurance, mortgage and financial products. The device that allows this company to track all their drivers’ journeys is Accent Systems iBKS beacon. It is placed in each car and, paired with the “ChilliDrive” app, to monitor the behavior of their clients in the road and records how well they drive. As they say, “it rewards the driver with lower premiums; so the better they drive, the more they save”.

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Unique partnership As seen in this concrete use case, the iBKS beacons (synchronized with the app) are used as an aided device to assist in monitoring driving patterns. As Carlisle said: “We decided beacons were a simple solution to assist our clients in the most cost effective way to ensure accuracy of journeys being recorded”. The beacon tells the smartphone when the driver has got in the car, and the app measures the driving for smoothness, anticipation, cornering and speed. And after each journey, they’ll get a score. The first time Autoline introduced beacons to their clients was in August 2015, under the motto: “Drive safely and make big savings on your car insurance”, and nowadays there are more than 3,750 of the iBKS beacons spread all around UK cars.

29

SASA PUBLIC TRANSPORTATION COMPANY

TECHNOLOGIES USED

GEOGRAPHY

Use case by Onyx Beacon

Italy

Beacons

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY Transforming public transportation into a game with ecological purposes Passengers are awarded with points for every kilometer of bus travel Passengers receive rewards that can be shared via social networks and all their results are publicly presented in a ranking, so they feel like being in a continuous competition with other users

Page 1 out of 2

OBJECTIVE: Gamification experience and providing interactive real-time information for passengers Public transportation turned into gamification In the Bolzano region of South Tirol in Northern Italy, public transportation is not anymore just a service, but is going to be a game with generous environmental purposes. The regional transportation company SASA is trying to educate and motivate its customers to prefer public transportation instead of own vehicles. In order to reduce fossil fuels consumption, avoid pollution and protect the environment.

How it works The boarding point and the drop-off point for each travel are precisely determined by using the Bluetooth beacons deployed in each point of the transportation network. So the number of kilometers, the number of travels and all the interactions via mobile app between passengers and the transportation company can be transformed in points and accumulated in a general score.

The number of kilometers is precisely calculated for each mobile user which turns on the Bluetooth on its mobile device. Every bus and every bus stop reached by SASA buses are covered with Onyx Beacons. These devices provide, via mobile app installed on the mobile phone and via a Content Management System platform, an accurate measurement of the onbus dwell time for each mobile user.

Passengers are awarded with points for every kilometer of bus travel, but they can gain supplementary rewards when responding to various challenges launched by the transportation company. They are invited to follow and go onboard to the ecologic fuel cell buses (powered by hydrogen engines), to accumulate a given mileage in a month or to participate at - “The Mobility Days”.

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30

SASA PUBLIC TRANSPORTATION COMPANY

TECHNOLOGIES USED

GEOGRAPHY

Use case by Onyx Beacon

Italy

Beacons

BRANDS INVOLVED

SOLUTIONS BY

SUMMARY Transforming public transportation into a game with ecological purposes Passengers are awarded with points for every kilometer of bus travel

Page 2 out of 2

OBJECTIVE: Gamification experience and providing interactive real-time information for passengers For each level passed in the game, passengers receive rewards that can be shared via social networks and all their results are publicly presented in a ranking. So they feel like being in a continuous competition with other users. Using the public transportation system is not anymore a boring daily routine, but becomes a fun, entertaining and challenging experience. Having an ultimate purpose - the protection of the environment, the reduction of the air pollution and a better and friendly traffic in the region. Passengers become an active community, their social interactions and relationships are stronger and they have a real contribution to the improvement of the quality of life in their region.

Passengers receive rewards that can be shared via social networks and all their results are publicly presented in a ranking, so they feel like being in a continuous competition with other users

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Gamification Gamification becomes an effective method to involve and stimulate local public towards an increased use of public transport. By transmitting a virtuous message such as protection of the environment and by providing a game tied to the actual reality people become more and more active and interested in this context. SASA is the first company locally as well as on the national level in Italy to take on the challenge posed by the ever more widespread concept of the Smart City. This is the second phase of implementation for the SASA Bus mobile application, based on Bluetooth Beacon technology. In the first phase of the project, 1000 Onyx Beacons were placed on all buses and bus stops.

31

TECHNOLOGIES USED

BAI CANADA

GEOGRAPHY

Use case by AP1

Canada

Beacons

BRANDS INVOLVED

SOLUTIONS BY

Wi-Fi

Page 1 out of 2

OBJECTIVE: Programmatic Bluetooth Low Energy (BLE) media platform, infrastructure monetization AP1 is teaming up with BAI Canada, leaders in underground communication networks, by developing the world’s first Proximity-based media platform using hardwired beacons to compliment BAI’s existing sponsored Wi-Fi service, TCONNECT in Toronto’s subway system, the TTC.

SUMMARY Explore numerous locations that trigger events via Bluetooth directly through the programmatic proximity marketplace platform and utilize filters to learn of surrounding retail mix for more accurate segmentation Actionable insights via the collection of active data and passive data to observe trends and performance of each campaign

As a result, AP1, with the help of BAI Canada’s robust Wi-Fi network, will aim to connect with TTC’s 1.2 million daily commuters by collecting data and prompting engagement via Bluetooth Low Energy (BLE). Ken Ranger, CEO of BAI Canada shares his vision, “By adopting Bluetooth in the TTC, BAI Canada is looking forward to building upon the nation’s largest underground communication network by offering commuters more ways to stay connected. We’re excited to uncover new insights and discover how beacons can compliment our Wi-Fi service, TCONNECT by allowing apps to perform more dynamically based on their audience’s location”.

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In order to accomplish this, AP1 is working with BAI Canada on implementation, development and integration to enable the publisher to programmatically manage and sell additional advertising inventory through BLE. The system is custom designed to assist BAI Canada to potentially generate additional revenue by offering advertisers the opportunity to extend their reach by leveraging Wi-Fi for activation, and BLE for performance and analytics. As a result, this secure, self-service platform enables advertisers to automatically prompt mobile moments that are accurate, timely and relevant in locations where other systems such as geolocation is unable to access.

32

TECHNOLOGIES USED

BAI CANADA

GEOGRAPHY

Use case by AP1

Canada

Beacons

BRANDS INVOLVED

SOLUTIONS BY

Wi-Fi

Page 2 out of 2

OBJECTIVE: Programmatic Bluetooth Low Energy (BLE) media platform, infrastructure monetization Ultimately, the marketplace is built to make beacon technology more accessible for media agencies, advertisers, brands and publishers to see how it can potentially play a more significant role in advertising by enabling them with the capability to further measure consumer trends in-location to justify new media spends, identify more performance metrics and advertise at scale.

SUMMARY Explore numerous locations that trigger events via Bluetooth directly through the programmatic proximity marketplace platform and utilize filters to learn of surrounding retail mix for more accurate segmentation Actionable insights via the collection of active data and passive data to observe trends and performance of each campaign

How It Works For Advertisers Explore numerous locations that are accessible to trigger events via BLE directly through the marketplace platform and utilize filters to learn of surrounding retailers for more accurate segmentation. Actionable insights via the collection of active beacon data.

Value Proposition for Publishers Full control - In order to sign up to gain access to a publishers programmatic inventory, advertisers must sign a document releasing the terms of purchasing including payment terms. Publishers can select what kinds of advertisers can view and bid on their inventory. Secure network - protect the integrity of each bid on the network through rotating identifiers.

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33

PROXIMITY INDUSTRY STATUS The information contained in the following section has been aggregated from all data input by Proxbook members. To navigate between companies use the advanced filter labelled “Company Directory” at www.proxbook.com

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34

INTRODUCING THE PSPi Announcing the first Proximity Solution Provider index - an automated calculation to rank Proxbook profiles under the categories of platform and hardware

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35

PSPi

Proximity Solution Provider index Announcing the first Proximity Solution Provider index. 
 This is an index based on the information provided in the company’s profile in Proxbook, and it is therefore not a scoring determining the success of the companies but the matureness of the Proxbook profile. 
 


The companies are split into hardware and platform to make it more valid for all parties. We are showcasing the top 5 hardware and top 20 platform providers. The total number of companies delivering platform solutions is higher, therefore the PSPi ranking list is longer for platform compared to hardware. 
 The following measurements were taken into account for the ranking: use cases in the Proxbook profile (max 3 points) whether the company is in commercial or pilot stage (max 2 points) clients (max 2 points)

PSPi HARDWARE 1. Estimote (UK)

8,85

2. Kontakt.io (Poland)

8,15

3. Accent Systems (Spain)

4,70

4. Cisco (US)

4,70

5. Sensoro (US)

4,60

sensors deployed (max 2 points) number of employees (max 0.5 point) geographic presence (max 0.5 point) It is possible to get a total maximum 10 points, and the scorings are weighed differently depending on what is most important (see above). For example, to have the company at a commercial stage is a more important aspect compared to the number of employees. 
 


In order to be classified at a commercial stage, it is mandatory to have at least one commercially launched use case in addition to listed client(s), in the Proxbook profile.

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36

PSPi

Proximity Solution Provider index PSPi PLATFORM 7,75

1. Proxama (UK) 2. Gimbal (US)

6,45

3. In The Pocket (Belgium)

5,90 5,65

4. OnyxBeacon (Romania) 5. Tamoco (UK)

5,60

6. Spark Compass (US)

5,60

7. inBeacon (Netherlands)

5,55

8. XtremePush (Ireland)

5,45 5,40

9. BluVision (US) 10. Liki Solutions (Finland)

5,35

11. BEACONinside (Germany)

5,25

12. ShopAdvisor (US)

5,20

13. ShopKick (US)

5,20

14. Zoniz (Romania)

5,15

15. Place of Interest (Turkey)

5,05

16. Signal360 (US)

4,95

17. Ubudu (France)

4,95

18. Lightcurb (Netherlands)

4,85

19. Smart Beacon (Italy)

4,85

20. inMarket (US)

In the first edition of the PSPi ranking, Estimote and Kontakt.io are head to head in the Hardware category, while Proxama came out on top in the Platform category followed by Gimbal

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37

INNOVATION IN HARDWARE

New products from Kontakt.io, Estimote & Cisco

Kontakt.io released their new portfolio of four new products. Firstly, the Card Beacon, which can trigger context-relevant actions. It lets you know where your co-workers or event attendees are spending most of their time. The Beacon Pro knows its environment and facilitates the move to automated industry. It is chargeable and long-lasting. It has a 60 month battery life, and can be powered by USB. The Gateway erases the need for smartphones or human interaction to push data to the cloud. It helps you locate assets or people, display the range of your beacons on a heat map, collect and analyze beacon data, and trigger truly proximity-based, individualized events. This in combination with the new Location Engine, enables a better solution for industrial IoT. Estimote’s newest product offering is the Mirror Beacon which allows the user to communicate with nearby phones and their corresponding apps. It takes the content from those apps and displays it on any digital screen around the user where the beacon is placed. Finally, Cisco showcased the new vBeacon. This one physical beacon can deploy eight virtual beacons by using the cloud. The radius of the virtual beacons can be determined with the highest range at two hundred feet, and the smallest at five and a half feet. The main drive behind this development was to help people with better indoor navigation, using hospitals as the main use case.

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38

BLUETOOTH ADOPTION AND THE WAY FORWARD Bluetooth will not be an obstacle on the way forward

WAY FORWARD iPhone 7 - No jack

BLUETOOTH ADOPTION

50% 40%

Wearables

Smart Homes

Bluetooth headsets count 54% of total headsets in the U.S.

Forecast: 322 million wearable devices sold globally in 2017

Bluetooth is the leading signal as market penetration is expected to hit 60% of households by 2021

Connected Cars

New iBeacon/PoS?

VR & AR accessories

A new Apple device has passed through the FCC and will come with Bluetooth and NFC

Pokemon GO 30 million daily active users, Snapchat 150 million daily active users

33%

2014 Source Beekn

2015 Source Rover

2016 Source Google

90% of new cars shipped by end of 2016 are going to be Bluetooth enabled

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39

PROXIMITY SOLUTION PROVIDERS BY COUNTRY Global distribution of Proximity Solution Providers

1-5 PSPs 6-10 PSPs 11-20 PSPs 20-50 PSPs 50+ PSPs

There are 350 Proximity Solution Providers that have signed up to Proxbook as of Q3, representing 49 different countries. United States and United Kingdom are still the leading countries with 127 and 36 companies, respectively.

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40

PROXIMITY SENSORS DEPLOYED GLOBALLY Q3 is the record quarter in sensor growth

SENSORS DEPLOYED GLOBALLY

The total number of proximity sensors continues to increase further in Q3. Over the last quarter there has been an increase of 3,497,000 proximity sensors.

11,770,500 (+42%)

As of Q3, there are 11,770,500 proximity sensors deployed globally by members of Proxbook. The sensors are split into 6,921,500 beacons, 2,102,000 NFC sensors and 2,747,000 Wi-Fi points. The total number of sensors is growing continuously over time. Over the last quarter there has been a steep 42% increase. The number of Wi-Fi points increased by 2,634,000 since the Q2 report. This is due to Cisco joining Proxbook, representing a large proportion of these deployments.

8,273,500 (+33%)

6,201,000 (+22%) 5,103,500 (+52%)

3,349,000 (+208%)

879,500

The physical world is being indexed further as the number of sensors deployed increases each quarter, this time to an impressive 42% from Q2.

Q2 2015

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Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

41

BEACON STANDARDS

Google Eddystone catching up to Apples iBeacon The most recent beacon protocol to launch is Eddystone by Google. By using Eddystone you can trigger both URL’s in browsers on smartphones as well as notifications in mobile apps, and it is supported on iOS and Android. More and more proximity companies are adding Eddystone support into their product portfolios, and Google is strengthening it’s position in the beacon standard competition each quarter.

POPULARITY OF DIFFERENT BEACON STANDARDS % of total Proxbook members supporting a beacon standard

96% 96% 93% 90% 89% 90%

iBeacon is the beacon protocol made by Apple. iBeacon can trigger notifications within mobile apps and is natively supported on iOS. Apple has been quiet since the release of iBeacon in 2013. However, a new Apple device has just passed through the FCC and it will come with both Bluetooth and NFC. They also recently removed the headphone jack from the iPhone 7, putting more emphasis on Bluetooth. Could this be Apple’s way of forcing the market to adapt to Bluetooth before releasing the new iBeacon 2.0?

As of Q3 more than half of the proximity industry is using Google Eddystone.

45% 49%

55%

38% 25% 5%

Q2 2015

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Q3 2015

Q4 2015

Q1 2016

Q2 2016

Q3 2016

42

PROXIMITY PRODUCTS AND SERVICES

PSPs continue to add value to their product portfolios PRODUCTS Companies are continuing the focus on improving their product range, as seen by the increase in all categories from last quarter. Proximity Advertising networks is still the area with the most growth (enabling 3rd party brands to deliver hyper targeted advertising through existing sensor infrastructure). There is also an increase in Data Monetization and Online Retargeting. Meaning that PSPs are focusing on delivering more value with their products other than push notifications. It is an increasing trend to enable marketers and brands to tap into the data for advertising purposes. In addition, more companies are looking into consulting services as the process of beacon deployment becomes more demanding in terms of setting up and managing a large scale infrastructure.

76%

Mobile Communication

73%

54%

Indoor Navigation

51%

Proximity Advertising Networks

39%

29%

Online Retargeting

24%

28%

Mobile Payments Digital Signage Data Monetization

45%

24%

16%

14% 11%

16%

OTHER SERVICES 54%

Project Management

54%

50%

Beacon Networks

Proximity Solution Providers are continuing to broaden their product portfolio and are adding more value to their solutions.

Consulting

49%

48%

45%

Q3 2016 Q2 2016

% of total Proxbook members providing products and other services

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43

PROXIMITY TECHNOLOGY AND SOFTWARE More proximity technologies

TECHNOLOGY 93%

Beacon services

There are eight main proximity technologies that are used to offer proximity solutions and four categories of software. Beacon based services are still the most popular beacon technology whereas 326 PSPs are delivering this service. However, Wi-Fi based services have increased over the last few quarters in comparison with the other proximity technologies, starting to catch up with GPS and Geofencing services. The number of companies including mobile apps into their portfolio and companies solely focusing on proximity apps also continues to increase. It becomes increasingly important to integrate mobile apps into the industry, as reaching the customers is one of the most crucial aspects in the industry as of now.

94%

55%

GPS/Geofencing

54%

33%

Wi-Fi Services

30%

17%

NFC Services

17%

15%

Audio Services

16%

13%

QR Code Services LED Services Magnetic Positioning

12%

5%

4%

3%

3%

SOFTWARE 83%

Content Management System

84%

77%

Analytics

More proximity companies are starting to include even more proximity technologies such as Wi-Fi based services.

76%

65%

Mobile SDK Mobile App

62%

36%

33%

Q3 2016 Q2 2016

% of total Proxbook members supporting a technology and software

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44

INDUSTRY VERTICALS

Continuous growth in verticals Retail

Proxbook covers 19 industry verticals where proximity technologies are leveraged. Retail, Shopping Malls, Hotels & Tourism, Stadiums & Sports and Airports are the top 5 verticals where we see companies operating.

Shopping Malls

67%

Hotels/Tourism

51%

Airports

Since the Q2 report, the biggest percentage increase has been in PSPs operating in Stadiums & Sports, Transportation and Themeparks & Zoos. Those verticals together with Concerts & Festivals, Museums, Cafes & Restaurants have also grown a lot looking at numbers back in Q3 2015. This shows the potential of using proximity technology in other industries than the obvious ones such as Retail and Shopping malls. PSPs are looking to operate within more verticals rather than specializing only on a few. As more solutions can be used across verticals, this makes it easier for companies to operate in more verticals at the same time and to be more flexible.

Retail and Shopping Malls are still the biggest verticals. However, more companies are starting to increase their vertical range.

51%

Cafe/Restaurant Museums Concerts/Festivals Conference Theme park

39%

Healthcare

39%

Transportation

38%

Cinema/Theatre Automotive

35%

Banking Education Real Estate

30%

Gas/Service Stations

29% 27% 27%

Logistics

55%

54%

Stadiums/Sports

38% 36%

73% 69%

74%

54% 53%

52% 51% 51% 49% 48% 46% 47% 46% 41% 41% 40% 39%

35% 34% 34% 33% 32% 30%

Q3 2016 Q2 2016

% of total Proxbook members providing services in a certain vertical

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45

PROXIMITY SOLUTION PROVIDERS PER COUNTRY North America is closing the gap to Europe As of Q3, there are 350 Proximity Solution Providers in Proxbook that represents 49 different countries.

United Kingdom 10,3%

Canada 4,3%

United States 36,3%

France 3,7%

Looking at the changes from the Q2 report, Europe is still ahead of North America, but only with 42% vs 41%. The United States and the United Kingdom are the two fastest growing countries to adopt proximity, with United States still far ahead of United Kingdom, representing 36% of the global proximity market.

Italy 3,4% Netherlands 3,1%

Even though Asia has been a bit behind in adoption, their adoption continues to grow. China has quickly climbed into the list of the countries with most PSPs, now with 10 companies.

Australia 2,9% Norway 2,9% China 2,9% Germany 2,6%

Asia is still behind Europe and North America in the adoption of proximity. However, China is growing fast in the industry which could indicate that they are going to catch up much faster than expected.

Other 27,7%

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46

GROWTH TRENDS OF PROXIMITY SOLUTION PROVIDERS Number of proximity companies starting up still increasing So far, 66 new PSPs was founded in 2016 according to the profiles in Proxbook. That is nine more companies since the Q2 report, and an increase of 24 companies since Q1. The main boost happened after the release of the iBeacon in 2013 and many companies have been funded after this period, which has led to innovations within the industry. Some big players are starting to dominate in certain product categories and within specific verticals. Smaller players are still able to enter as there are many unexplored areas. They can come up with new ideas and products, as well as discover new verticals where proximity can be leveraged.

PROXIMITY SOLUTION PROVIDERS BY YEAR FOUNDED % of total Proxbook members founded by year

83 (24%)

66

61

(19%)

(17%)

51 (15%)

36 (10%)

Just since the previous report, Estimote, Kontakt.io and Cisco have each released new products in the market. Most likely, we will still see a number of new players coming into the industry with innovative products, new verticals as well as complementing existing ones.

14 (4%)

2008

2009

The proximity industry is continues to grow rapidly, with new companies and products entering the market.

17 (5%)

2010

21 (6%)

2011

2012

2013

Launched

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2014

2015

Launched

47

CATEGORIES OF PROXIMITY SOLUTION PROVIDERS There are five categories of proximity companies 154 companies are focused on providing a proximity platform. A proximity platform consists of a content management system, analytical dashboard, a mobile app for consumers and a mobile SDK. A proximity platform is used to offer products like mobile communication, proximity advertising networks, data monetization, indoor navigation, digital signage, online retargeting and mobile payments. Examples of proximity platforms: Footmarks and Plot Projects.

5%

9%

30 proximity solution providers focus mainly on hardware. A proximity hardware provider typically provides beacons, NFC, Wi-Fi, RFID or other sensors. To manage the hardware, tools for fleet management and SDK’s are provided. Examples of proximity hardware providers: Kontakt.io and Estimote.

Consulting

App

PSP CATEGORIES IN PROXBOOK

118 members of Proxbook provide both a proximity platform and hardware. 
 Examples of platform and hardware are Signal360 and Gimbal. 32 members focus on providing and distributing proximity apps (which are essentially proximity platforms). Examples of apps are ShopAdvisor and Check.

44%

17 companies focus on proximity solution consulting such as Statler Consulting and HeyBuy.

Platform

34% Proximity Solution Providers can be divided into five main categories.

Platform & Hardware

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9% Hardware

48

METHODOLOGY

The Proxbook Report is published quarterly The Proxbook Report is based on data from Proxbook as of October 1, 2016 and conducted by Unacast. Data and information used in Industry standards section is submitted by Proximity Solution Providers (PSPs). The amount of sensors deployed on page 41 is based on a number range (e.g. 50-100) submitted by the PSPs where the average of the range (e.g. 75) has been used to calculate the numbers of sensors deployed. The PSPi is an automated calculation based on use cases in the Proxbook profile, whether the company is involved in commercial or pilot stage projects, clients, sensors deployed, number of employees, geographic presence Proxbook was launched in June 2015 by Unacast, in cooperation with the Location Based Marketing Association and Statler Consulting LLC (Stephen Statler). The Proxbook Report is published quarterly, download previous reports here. You can contact us at [email protected]

REFERENCES SITA - Airport IT Trends Survey 2016 (https://www.sita.aero/resources/type/surveys-reports/airport-it-trendssurvey-2016) EyeforTravel - Airport 3.0 the Technology and Data Transforming Aiport Operations 2016 (http://www.eyefortravel.com/ airport-30-technology-and-data-transforming-airport-operations) Federal Reserve Bank of Boston - Transit Mobile Payment 2016 (https://www.bostonfed.org/publications/paymentstrategies/commuting-gets-a-little-easier-with-transit-mobile-payments.aspx) Research: Trends in Mobile Transit Information Utilization: An Exploratory Analysis of Transit App in New York City 2016 (http://scholarcommons.usf.edu/cgi/viewcontent.cgi?article=1530&context=jpt) Research: An Analysis of Commuter Rail Real-Time Information in Boston 2015 (ares.lids.mit.edu/fm/documents/ commuter_boston.pdf)

Proxbook is a service provided by Unacast

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ABOUT UNACAST

Unacast is the world’s largest proximity and beacon data platform Today’s location-based industry is heavily focused on geo-location and lat/long which is probabilistic. As this data comes from apps and bid requests combined with a geo-location API, the accuracy is very difficult to pinpoint - especially indoors. Beacons on the other hand, provide deterministic, accurate data and they work indoors. So far it has been difficult for advertisers to access that data as it is fragmented between hundreds of brands and proximity companies that own the deployments. With 2 million beacons and 65 partners, Unacast is building the Real World Graph™ by connecting all global proximity sensors, like beacons, into one platform. By aggregating data from our proximity partners, we solve the fragmentation problem and provide value to the entire ecosystem. For the first time, advertisers have scalable access to proximity data through a single integration and can use the data for retargeting and attribution, based on the taxonomy that we have created for the physical world. Proximity companies receive an opportunity to monetize their sensor infrastructure, enabling a passive new revenue stream helping to win more deals. Visit us at www.unacast.com to learn more, and to sign up to PROX.

Overall Winner, ICOM Data Venture Challenge Awards 2016

“Best LocationBased Campaign”, 2015 Local Visionary Award

“Unacast is one of the top 10 global companies in the 3,5$ billion retail analytics industry”

“Unacast: The Prototype for the New Advertising Generation”

Proxbook is a service provided by Unacast

Unacast chosen to Unilever’s Foundry 50 out of 4500 companies

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