Proximity Marketing: How It Works and Why Your Business Needs It

The goal of proximity marketing is to reach your target customer with particularly targeted and individualized adverts at the optimal moment and location. When used in conjunction with the appropriate marketing tactics and methods, it produces good outcomes for companies?.

Companies have been deploying proximity marketing techniques to improve user engagement at stores and airlines for the past two years. Marketers in a range of sectors are increasingly starting to understand the significant advantages proximity advertising provides beyond simply distributing coupons. 

These technologies make it easier to comprehend what clients seem to want. The distinct patterns in consumer behavior allow businesses that employ them to create the picture?. 

Because of COVID-19, we may very well witness a restructuring of marketing techniques for this modern technology as we move further toward 2023. 

What to know about proximity marketing 

Proximity marketing leverages dynamic displays, direct communication, and targeted promotions to engage potential buyers near points of sale or service delivery?.

It offers personalized advertising and detailed product information within specific geographic boundaries. Through advancements in technology, businesses can enhance customer interaction by providing augmented reality experiences and multimedia content.

This allows customers to access in-depth product details, instructions, demonstrations, and ethical considerations. Specialized applications and QR codes enable consumers to explore additional multimedia materials and gain a comprehensive understanding of the products offered?.

One notable aspect of proximity marketing is its consumer empowerment, as customers have the autonomy to accept or reject advertisements based on their preferences.

By effectively utilizing proximity marketing strategies, businesses can captivate their core demographic, boost customer engagement, and drive sales.

What is proximity marketing 

Mobile advertising that is tied to a geographical position is proximity marketing.

Clients may receive customized messaging or be given access to various marketed dynamic content whenever their smartphones pass a specific spot. An electronic geolocation system is entirely credited for this?‍?.

As an illustration, you could utilize proximity marketing to email your consumers a text or maybe a voucher when their phones are near your physical business. With the help of proximity advertising, companies can perfectly combine in-person interaction with consumers entering your location with the online smartphone industry, where they spend the majority of their spare time.

Digital advertising uses many different kinds of geolocation tech, many of which are classified as proximity marketing?.

How does proximity marketing works 

Bluetooth proximity advertisement entails positioning a Bluetooth-enabled smartphone or tablet at a certain location inside a beacon’s spectrum and transmitting data via the associated mobile website in the form of written information, photos, or multimedia?. To use this marketing method, you need to have a few prerequisites. As follows:

  • While implementing proximity marketing automation, the customer must be utilizing a Bluetooth-enabled smartphone or tablet.
  • To transmit and receive targeted ads or other data, a transmitter must be installed in the vicinity of the user’s present location.
  • The prospective client should have successfully installed the required software platform on a smartphone that can receive text alerts. You may take your personal company’s software for it or a broader building’s application (such as the directory of a supermarket or an application for a special product within the store)?.

proximity marketing Strategy

Define your target audience:

Identify the specific demographic and psychographic characteristics of your target audience. Understand their preferences, behaviors, and needs to tailor your proximity marketing campaigns accordingly.

Choose the right technology:

Select the appropriate proximity marketing technology that suits your business goals and budget. This could include Bluetooth beacons, NFC (Near Field Communication), Wi-Fi, or geofencing?.

Set campaign objectives:

Determine the goals you want to achieve with your proximity marketing campaigns. Whether it’s increasing foot traffic, driving sales, promoting a new product, or enhancing customer loyalty, clearly define your objectives.

Develop compelling content:

Create engaging and personalized content that resonates with your target audience. Tailor your messages and promotions based on the customer’s location, preferences, and past purchase history to increase relevance and effectiveness.

Implement location-based technologies:

Deploy the chosen proximity marketing technology, such as Bluetooth beacons or geofencing, in your physical locations. Ensure that the technology is properly installed, configured, and integrated with your marketing systems?.

Optimize customer experience:

Prioritize delivering value to your customers through proximity marketing. Focus on providing relevant and timely information, exclusive offers, personalized recommendations, and seamless interactions to enhance the overall customer experience.

Analyze and iterate:

Regularly monitor and analyze the performance of your proximity marketing campaigns. Track key metrics such as foot traffic, conversions, engagement rates, and customer feedback.

Use these insights to optimize your strategy, make data-driven decisions, and improve future campaigns.

Comply with privacy regulations:

Ensure that your proximity marketing activities comply with relevant privacy regulations, such as obtaining user consent for collecting and using location data. Transparency and respect for user privacy are critical to maintaining trust and avoiding legal issues.

Integrate with broader marketing efforts:

Integrate your proximity marketing initiatives with your broader marketing efforts to create a cohesive and consistent brand experience across channels. Coordinate messaging, offers, and promotions to reinforce your brand’s value proposition.

Continuously innovate:

Proximity marketing is a rapidly evolving field. Stay updated with emerging technologies, industry trends, and consumer preferences to stay ahead of the competition. Experiment with new approaches and technologies to continuously improve your proximity marketing strategy?.

Tips for proximity marketing

There are several things to take into account while deploying beacons for proximity marketing, ranging from the power options to the best type of beacon. The communication takes place in 3 simple phases when the brand places a transmitter in the location selected for advertising:

  • Device detection:

A beacon frequently communicates its Identification code, which is specific to it, while searching for nearby Bluetooth-enabled Android platforms?. 

The proximity-aware Android application will also store a database of all the transmitters’ activation ID numbers and link those to their locations. 

The gadget notifies the proximity-aware smartphone application that a transmitter is near when it successfully compares a beacon’s ID with the ID stored on the application.

  • Request for permission:

It will request access to customers attempting authorization to connect with their Android platforms for any Bluetooth-enabled smartphone spotted within the vicinity radius of the transmitter?.

  • Upload content:

Based on how the application has been set up, the user will be notified with an indicator on the home screen after giving consent for the application to demonstrate the requested text. 

By accessing the text, the app launches at a device with personalized, targeted advertisements about the sport or activity selected for the advertising or a similar item found one step away. 

These messages may include messages, photos, sound recordings, and video?.

Types of proximity marketing 

Some of the most widely utilized techniques for proximity marketing are listed below:

NFC (Near-field communication)

NFC enables safe communication between a local smartphone and an RFID (radio frequency identification) sensor, allowing the sensor to give the smartphone personalized information.

NFC is most frequently used in retailers for seamless smartphone payments, such as those made with Apple Pay and Google Pay. Nonetheless, there are numerous applications for NFC in proximity advertising?. 

To provide quick information (such as brief descriptions, photographs, recordings, and opinions) when clients hold their devices towards the sensor, you may put RFID chips in your items or stores. 

For instance, several apparel retailers email clients’ device images and recordings of how the products might be presented, including eye-catching runway photographs.


A company can use the geofencing technique to notify a phone anytime a customer enters a specified area surrounding a geographical site. You can build a digital “fence” surrounding your company with the use of sensors and transmitters (which allow a device’s location functions). 

As a client crosses the “fence,” you can easily notify them of a sales notice or a limited-time coupon. By doing this, you may send information to your clients just when they are nearby and pertinent?.

The application for your company can be used to establish geofencing messaging, but users must have the application enabled to receive notifications. Instead, you might use Text messages, which will activate even if your application isn’t active.


Beacons function identically to geofencing, except rather than relying on sensors and cellphone towers, they use Bluetooth connectivity. A beacon is a small, Bluetooth-capable gadget that is about the shape of a cell phone and has a range of 50 to 150 yards. 

In this way, beacons can assist with hyper-targeted advertising when a consumer is already within your shop or is very near to the company’s location?. 

You might even employ several beacons, each with a limited field of vision, to convey details about certain products to customers as they approach them (and take benefit of micro-moments).

Internet Browsing 

Another well-liked proximity marketing strategy involves launching promotions and messages when clients connect to the internet nearby. When clients use the WiFi at your establishment, you might implement this?. 

Rather, you may employ the location-based services provided by cell phone browsers to serve up creative web content to users who are in or close to your storefront.

Pros and cons of proximity marketing

Increased targeting precisionPrivacy concerns and potential invasion of privacy
Enhanced customer engagementHigh implementation costs
Real-time, location-based promotionsReliance on customer opt-in for success
Personalized messaging and offersLimited reach outside physical proximity
Improved customer loyalty and retentionTechnical challenges and connectivity issues
Effective in driving impulse purchasesPotential for overwhelming customers with messages
Opportunities for data collection and analysisReliance on mobile device adoption and usage

proximity marketing examples 

These are some actual instances of premium companies using proximity marketing to success: 


Eat, a network of fast-casual restaurants partnered with Weve’s consumer loyalty program, Pouch. The app’s purpose was to keep track of a company’s client engagement cards and deliver discounts to them. 

The goal of this relationship is to improve both digital and in-store experiences. Throughout its advertising, Eat hailed this decision as a “strategic pillar?.” 

Making accurate choices about how to impact client conduct enabled the corporation to obtain more data about client behavior and produce data analytics.


Through the use of transmitters and a unique proximity business plan in their 15 cafés in Istanbul, Mcd’s sought to further cement its ties with consumers and advertise a fresh range of caffeine drinks. 

A key component of this venture, the restaurant used Shopping Genie, a well-known engagement app in Turkey, to attract clients as they passed by a nearby McDonald’s Café. Consumers received discount codes via smartphone, luring them to buy a coffee and obtain a complimentary drink from the Slurpee collection. 

McDonald’s was also capable of achieving a 20% exchange rate, with 30% of customers that viewed the offer due to their proximity promotional campaign using beacons?.


GE and Walmart have joined up to conduct an original iBeacon experiment. The commercial powerhouse employed GE incandescent bulbs as transmitter casings to notify in-store consumers of discounts and special offers via email alerts. 

These beacon-equipped LED lamps can monitor customers inside a retail store by employing the transmitters concealed within them. As a result, these stores were no longer required to purchase additional beacon-related equipment?.


The Girls’ Night celebration was made more fun by using iBeacon devices at the Meadowhall Department Store in Sheffield, UK, where businesses gave away gifts, rebates, and incentives in exchange for participation. 

Several retailers attended the celebration, including Krispy Kreme, Cath Kidston, Hôtel Chocolat, and Hall of Fraser. To get a notice if they were near a beacon, users had to install Meadowhall’s sensor application?. 

Over 500 applications were downloaded during the celebration’s first few hours, and nearly 500 coupons were used.

Within the initial half an hour of the program, all 120 WiFi registrations were used. Meadowhall’s use of “groundbreaking” smartphone beacons earned it a Purple Apple Merit Award for good advertising.

Best Buy

To boost profits and enhance customer personalization, Best Buy adopted a beacon approach. The shopping powerhouse decided to use its own software and the Shopkick marketing software to entice customers to enter a store. 

Beacons weren’t used much for in-store sales and marketing?.


To enhance the tailoring of customers’ buying experience, Hammerson installed transmitters in all of its retail stores. Their Plus app, which utilizes ultrasonic sensors, was developed and tested at Les Terrasses du Port in Marseille and rated as one of France’s best ten lifestyle applications. 

Hammerson has almost 6,000 transmitters positioned across its commercial establishments in the UK and France, and more than 80,000 clients have even installed the Plus application?. 

The retail center insists on utilizing technology to track how clients move throughout the malls and to send targeted offers to them in particular spots.


In collaboration with household products business Unilever, UK grocery giant Tesco started its “largest experiment” of the iBeacon system by installing beacons at 270 of its locations throughout London. 

As a cornerstone of the Pink and Black promotional strategy, they released the “Mpulse app.” Customers who drove by deployed transmitters at 270 Tesco Express outlets after downloading this application instantly received special vouchers for priced Pink and Black Magnums on their smartphones?.

Oscar Mayer 

While the majority of businesses were deploying beacons widely, Oscar Mayer struck an innovative agreement with retailers that would permit them to install transmitters at the cafeteria section. 

Thanks to this arrangement, they may persuade customers to purchase the weekly offers while standing in line at the counter.

Amazon Go Store 

In Seattle, Washington, the sales powerhouse Amazon opened a new utility market in January 2018. Simply put, Amazon Go is an? 1800-square-foot mini-market with cuisine and gadgets. 

To provide a unique shopping experience, they have installed a variety of camera systems, transmitters, and other proximity detectors. The store’s unique selling proposition is the absence of checkout counters. 

Beacons are utilized throughout the shop to track the items purchased and improve customer interaction. These shops have established a new benchmark for successful businesses around the globe. Walmart and Nike are updating their shop concepts to work with the upcoming Go outlets!

Neiman Marcus 

The upmarket retail brand Neiman Marcus tested proximity advertising transmitters at three of its locations: in Austin, Texas; Walnut Creek, California; and San Antonio?. 

Their main objective was to publicize in-store activities like trunk displays, appearances by guest artists, autograph signings, and so forth. In the case that a customer is available at the shop that day, the emails would provide the location of the event, it’s timing and instructions.


Toyota employed proximity promotional techniques to reach out to those who were most inclined to buy new automobiles and persuade them to stop by nearby showrooms. 

The business not only received 1,200 ?visitors to the showrooms that were the focus of the promotion but there were several trips to surrounding, smaller retailers. Outback Steakhouse employed GPS proximity advertising to reach potential consumers close to important places. 

The ad surpassed industry norms by 80% and saw a 25% spike in queries about eating at Outback.

Ulta Beauty 

The beauty company Ulta Beauty decided to use proximity marketing to announce the launch of its latest store. The company opted to advertise to those who live close to its new shop.

Consequently, their storefront received widespread attention and became significantly more productive than the existing platforms.

They were capable of completing their weekly goals on aggregate 45% more quickly and 26 days early thanks to beacons than that to the establishments they didn’t install them in?.

FAQ for proximity marketing

How is proximity marketing implemented?

A user enters a simulated variable in proximity advertising, and upon doing so, their smartphone is sent an online message. This notification might contain a deal or offer or provide further details on a nearby activity.

How is proximity marketing used?

Large companies frequently employ proximity marketing to persuade customers to buy their products. When they detect you haven’t stepped in for a period, they can offer you discounts or advertisements based on how regularly you frequent a shop.

What aspects of the shopping experience does proximity marketing enhance?

Since proximity marketing offers highly customized communications that are relevant to each customer, it can be quite helpful. The duration people spend looking is cut down, and they could invest more as a result.

What kinds of proximity marketing are there?

The delivery of media at sporting and social events, traveling, checking into hotels, and shopping are common usage.

Does proximity marketing work well?

If done right, proximity advertising can be quite successful. It’s critical to comprehend your clientele’s needs and shopping preferences. Your organization can enhance its marketing techniques if you better understand your customers.

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