Danoo marries Bluetooth marketing with flat-panel display ads

Danoo has been putting flat-panel TVs in places such as Starbucks coffee houses to show ads to customers while they’re waiting in line. And now it plans to roll out mobile marketing campaigns that use Bluetooth or Wi-Fi connections to beam ads from the displays to cell phones.

The San Francisco-based company recently conducted Bluetooth campaigns with clients such as ABC, Electronic Arts, and The History Channel in 39 locations in Los Angeles where it has flat panel displays. The results were very good. Only 7 or 8 percent of cell phone users had turned on their Bluetooth connections to discoverable mode. Of those, 28 percent responded positively to pitches coming from the TVs, said Doug Scott, vice president of marketing at Danoo.

“The screens are a good jumping off point for advertising,” Scott said. “The question is, how do you keep those people engaged? These are situations where people have a few seconds of boredom.”

The net download rate is less than 3 percent of total venue traffic. Danoo is rolling out the services across 200 locations soon. If the download rate holds up in the broader tests, then users could download 200,000 items in a two-week campaign. That’s a pretty clear return-on-investment for a marketing campaign. Of course, one of the questions is how repeatable are these campaigns. The response rate may be high because of the novelty of Bluetooth discovery, but it may wear off after a while.

The campaign ran over a couple of months. With Electronic Arts, Danoo ran ads for the Sims 3 game that debuted on June 2. The ads asked if cell phone users wanted to view the full trailer for the game. Other promotions ask customers if they want to download ring tones or other special offers. Starting in July, Danoo will run new campaigns in Los Angeles and New York.

Full told, Danoo has more than 1,000 locations in the top metropolitan regions, and it has 58 employees. The company was founded in 2006 with funding from Kleiner Perkins Caufield & Byers, DAG Ventures and Deep Fork Capital. Danoo’s rivals include Ripple, Channel M, Ideacast, and Captivate.


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