Smart Posters and Mobile Marketing Dominate NFC Tag Applications
LONDON—Nov. 29, 2011—Smart posters and mobile marketing are the greatest opportunity for service providers and manufacturers of NFC (near-field communication) tags, according to ABI Research’s “RFID and Smart Cards & Embedded Security” report. Those applications account for over half of the shipments to date and are expected to be the fastest growing use segment, accounting for 70 percent of shipments in 2016.
Companies, including Avery Dennison, Identive and UPM Raflatac, have all released products targeting the growing interest for the non-payment services that NFC enables. In total, this market is expected to be worth $298 million over the next five years.
“There are a number of high profile technology companies already rolling out smart posters and information pick-up using NFC,” says John Devlin, group director, security and ID. “Companies such as Google, Nokia, and RIM, as well as innovative MNOs, are all exploring new business models and looking for the revenue opportunities outside of payments.”
The ability to deploy, program and quickly update NFC tags is what makes them so suitable for businesses and service providers in an area that is often price sensitive and needs to be able to react quickly to changing consumer trends. The ability to localize and tailor the offers, combined with the fact that there is little or no additional infrastructure required, makes NFC so well-suited to posters and other information pick-up services. Another beneficial factor: compared to Bluetooth and location-based services, NFC is opt-in by nature, giving the consumer more control and countering any concerns regarding privacy.
Devlin concludes, “Smart posters are not the only application for NFC tags; there are already large scale commercial systems in place for worker check-in within home healthcare. Further potential will also be realized as service providers develop plug-ins with gaming and social networking applications. The ability of NFC to extend companies’ brands and mobile apps, making them more interactive within their physical surroundings, will allow them to improve customer loyalty and service experience.”
ABI Research’s new study, “NFC Tags,” forecasts the demand and value of the primary applications for NFC tags, including smart posters, information pick-up, check-in, infotainment, and personalization, and other non-payment services.
About ABI Research
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services.