The Next Big Thing
In our ever-changing world of media and technology, every week brings another headline detailing the “next big thing.” But Nearfield Communication (NFC) technology seems to be sticking around and making an impact in the Out of Home (OOH) advertising industry. It may actually be the “Next Big Thing” and not just another shiny new toy.
NFC isn’t only a Football Conference
NFC isn’t just the football conference of the New Orleans Saints and Chicago Bears. It is a technology in some smart phones that allows users to share information with each other by simply tapping their phone to another NFC enabled phone or an NFC “tag”. Tags are small radio-frequency identification chips that are small enough to be embedded into signs and can transfer information to an NFC enabled phone.
NFC technology is mostly used in the U.S. for mobile wallets – allowing consumers to pay for items via their phone. In Japan and Europe, it is widely used for anything that requires a ticket (such as transit) and has been making in-roads into marketing plans.
For marketing purposes, NFC tags can be added to almost any pedestrian level, out-of-home media. The smart phone user simply taps the NFC tag to receive a variety of brand content, from streaming a product video or launching a URL to receiving directions to a nearby retail location or a coupon.
The possibilities are endless and much more user-friendly than scanning a QR code or sending a text message to get this information. The tags are small and easy to change – allowing for flexibility in messaging. You could have an NFC tag embedded into a retailer’s bus shelter ad that offers a buy one-get one free promotion the first week and a 25 percent off one item the next week. You could even optimize week to week, by tracking which offer resonated the most with consumers.
Moving the Chains
One of the most exciting possibilities of NFC consumer communication is the data that can be collected through this type of campaign. A UK fashion brand Zumo recently rolled out an NFC plan. Its stores started by educating the consumer on what an NFC tag was and how to use it. They then started using the tags for in-store offers, loyalty card programs and to supply information about specific clothing items. As the consumer became more engaged with this type of communication, Zumo began using NFC tags in their store windows and on their OOH advertising media. The brand saw increased sales, social media conversation and customer loyalty.
Early Adoption in U.S.
While 6.8 million smart phones were activated on Christmas Day in the U.S., many consumers don’t know what Nearfield Communication is, what the benefits are, nor if their phone even has the capability. While several Android phones and Blackberrys are NFC enabled, iPhones are not. If NFC is to reach its full marketing potential, there will need to be a lot education to U.S. marketers and ultimately consumers. In the meantime, hopefully a broader adoption of NFC technology will take place with smart phones.
:: By Gretchen Reisner, Media Strategist
