Apple – Starbucks deal launches proximity advertising
advertising, appleMany people were happy to see the release of the next generation of iPods. Most notably, the long awaited touch
screen iPod (iPod Touch). The new iPod not only has the iPhone’s user interface, but it’s basically the same device, minus the phone and camera (and AT&T).
As a part of the announcement, Apple introduced a new partnership with Starbucks. The new iPod (let’s call it the ChaiPod) as well as the iPhone works with WiFi in these establishments to allow for easy purchase of the currently playing song at the store. It creates an interface to make a spontaneous purchase of music while simply waiting in line or relaxing at a table. In a way, playing music in Starbucks now becomes more than a expose and forget medium. It becomes a true advertising medium for musicians with a much higher purchase per listen rate.
HOW THIS IS SIGNIFICANT
Like many, I was unenthusiastic about the announcement of what Steve Jobs hyped as the result of a 2 year project. But then I began to think. People have been theorizing of a day when you could walk down the street, pass a billboard, and have a targeted advertisement display on it. In this case, walk into a room and have the ability to instantly have advertising sent to you. Add the ability to make that purchase the advertised item instantly from there, and you have a powerful form of proximity advertising. There is no reason to think that this form of advertising is simply a one-time Starbucks thing. I believe we are seeing a glimpse of the future.
WHAT COULD THE FUTURE HOLD?
Could Apple be thinking of going the way of Google? To many, Google is simply a search engine. On the surface, that is exactly what they appear. But don’t mistake it. Google is an ADVERTISING company.
What if Apple was attempting to go down the same road? Utilize the technology that is being “test marketed” through Starbucks for this whole new form of advertising and e-commerce. Could Apple be the Google of proximity advertising?
REALLY GOING OUT ON A LIMB
Ok, you may think I’m crazy (and you would be right), but it actually makes some sense. What would happen if Google and Apple combine their resources to provide this proximity advertising? They already have a strong relationship. Google has been looking into purchasing part of the radio spectrum when the FCC auctions off the old television band. They already have tons of “dark fiber.” Google has all the information about you and your interests. Apple has the hardware to integrate that information with the world around you. Walk past a restaurant and your Apple device automatically shows you the menu and highlights items that would be most appealing to you. Walk through a mall and it selects stores and items that appeal specifically to you. AppleGoo would be a formidable force.
All that aside, it will be very interesting to see how this pans out. I’ve often talked about how important a niche is in new media and marketing. Perfectly targeted advertisements are the dream of any company. Will auto-targeted proximity advertising and impulse purchases become the rule in our every day lives? OR, will we simply get even more annoyed at the increased amount of ads?



