October 13, 2012, 8:41 PM — This vendor-written tech primer has been edited by Network World to eliminate product promotion, but readers should note it will likely favor the submitter's approach.
Near field communication (NFC) is being hailed in some quarters as the future of mobile marketing. NFC tags that are embedded in products or on posters and signage can open a mobile browser in an NFC-enabled device (such as a smartphone) to transmit an offer or message. To start the communication, the consumer simply taps his or her smartphone to the tag to receive the transmission wirelessly.
NFC technology has made inroads as a mobile payment tool, such as the Google Wallet, which allows wireless payment via a smartphone app. And it's starting to appear as a proximity marketing tool in places like city bus stops, subway platforms, shopping mall kiosks and other venues to transmit advertising messages. It's definitely a trendy way to communicate with consumers in a proximity marketing setting.
Currently, Bluetooth and Wi-Fi are the primary platforms enterprises use to transmit proximity marketing messages, but some analysts expect NFC to become a significant rival. In fact, some contend that NFC will eventually overtake other proximity marketing communication methods and become the dominant way to conduct a location-based advertising campaign.
But there are significant obstacles to this scenario. One barrier to consumer receptiveness to NFC campaigns is that smartphone users may have to download an app to use the NFC tag to receive messages. Virtually every smartphone already comes equipped with Bluetooth and Wi-Fi capabilities.
Another potential barrier is that NFC ad campaigns require consumers to initiate the engagement. First, they have to read the poster or sign, and then they have to decide to tap their device to receive the message. Since many consumers are already engaged with content on their devices in public spaces, they are less likely to notice the invitation to receive the message.