Shopping platforms are continuously improving their services by enhancing the level of relevance and personalization using various methods. Beacon-based proximity advertising is one of the most effective methods that has proven to bring effective engagement.
The biggest advantage of beacons is contextual marketing. This contextual approach has made proximity advertising 16 times more effective than Google though it costs less. Also, the advent of Bluetooth 5 is expected to largely boost the effectiveness of beacon-based proximity advertising owing to the enhanced broadcasting capacity.
Social media marketing channels, such as Facebook and Twitter ads witness click-through rates (CTR) lower than that of beacon campaigns. In 2018, the average CTR of Facebook and Twitter ads is 0.119% and 1-3% respectively. But, the average CTR of beacon campaign ads is 3-4%. Also, the well-executed beacon campaigns have proven to yield a CTR of 12-15%!
Overall, the average CTR of beacon-based marketing campaigns is approximately 80 times the CTR of display ads, across all advertisement formats and placements (0.05%).