A Complete Guide to Bluetooth Beacons

Bluetooth beacons are small devices with singular attributes that enable them to be used effectively in many business and industrial situations. We will discuss the details of what constitutes a Bluetooth beacon, how they work, and how they can be incorporated into Internet of Things (IoT) implementations that require proximity measurement, low-power sensing, or indoor navigation. We’ll also look at some of the industries that are making use of both stationary beacons and mobile Bluetooth tags.

What is a Bluetooth beacon?

A Bluetooth Beacon is a small radio transmitter that is typically battery- powered, that has replaced many RFID alternatives. It is used to mark a location, designate a point of interest, or transmit sensor data to a Bluetooth-enabled application, usually running on a mobile device. The beacon transmits a minimal amount of data in the form of an ID that is processed by the receiver. Based on calculations that indicate the receiver’s location and the information sent by the beacon, an action may be initiated or performed by the device.

Bluetooth beacons are available in a wide variety of form factors that lend themselves to different applications and use cases. Bluetooth beacon is the term used to designate stationary devices that are used for purposes such as facilitating indoor navigation. Bluetooth transmitters that can be attached to or embedded in a moveable object like a supply chain component are called Bluetooth tags. We will primarily be talking about Bluetooth beacons but will touch on the use cases for tags as well.

What is a Bluetooth beacon?

The history of Bluetooth beacons begins in 1989 with the creation of Bluetooth technology by Dr. Nils Rydbeck and Dr. Johan Ullman of Ericsson who developed a technology that was initially called MC Link, this along with contributions from engineers at Nokia, IBM, Intel and Toshiba ultimately became Bluetooth.

The Bluetooth Low Energy protocol was introduced in 2010. The one-way broadcast communication mechanism that it provided to enable Bluetooth devices to be discovered by each other (Bluetooth advertising packets) enabled the creation of the beacons. Beacon technology was given a huge boost in visibility and popularity by the release of Apple’s iBeacon protocol in 2013 which allowed mobile apps to receive and respond to signals from beacons.

The deployment of Bluetooth beacons, manufactured by Qualcomm’s Gimbal team, using the iBeacon protocol, in all of Apple’s US stores inspired other retailers to adopt the technology. Apple was generally regarded as one of the world’s leading brick and mortar retailers and had the highest dollar per square foot revenue of any retailer at the time. They used iBeacon as a way of triggering the “store mode” of the Apple Store shopping app.

By 2014, more than half of the top 100 retailers in the U.S. had implemented Bluetooth beacon technology for data gathering and proximity advertising. Today, these beacons are widely used to create an enhanced customer experience through proximity marketing that delivers special offers to the mobile devices of shoppers running dedicated Bluetooth applications.

Beacons are also used extensively for indoor positioning and navigation. This application of the technology deploys a network of beacons mounted within a building that communicates with a mobile app to guide an individual or offer information about their current location.

How Bluetooth beacons work

Bluetooth beacons transmit data providing real-time information at regular intervals. Devices and apps running on them use this data for a wide variety of purposes that includes initiating an action or activity. A beacon typically only sends data and is not a receiver.

A Bluetooth Low Energy beacon employs Bluetooth Low Energy technology that is similar to Classic Bluetooth. Both communication technologies support short-range wireless radio transmission in the unlicensed 2.4 GHz ISM bandwidth. Bluetooth Low Energy has distinctive features that make it an effective choice for use in beacons.

BLE vs.
Bluetooth Low Energy

You may encounter the term BLE beacon used to refer to Bluetooth Low Energy beacons. BLE is a commonly used online acronym for Bluetooth Low Energy but its use is not endorsed by the Bluetooth SIG. The accepted way to reference the technology is Bluetooth Low Energy.

As its name implies, Bluetooth Low Energy operates efficiently with minimal power consumption. Energy is saved by a more power efficient protocol with lower data throughput than Classic Bluetooth and beacons using the protocol can afford to be in sleep mode for longer periods. They don’t need to be awake listening for new connections as they spend the vast majority of the time they are awake broadcasting for very short periods. The device wakes up periodically to transmit data. The extended battery life enables beacons to be used in many scenarios not possible with Classic Bluetooth.

Bluetooth Low Energy beacons can be deployed for extended periods without maintenance. Another attractive feature is the ability to communicate with an unlimited number of receivers. Simultaneous communication with multiple receivers facilitates the use of beacons for indoor marketing and positioning applications.

Bluetooth Low Energy beacons communicate by transmitting an identifier that is translated by an application on the receiving device. Additional information may be gathered by the receiver including the power level or angle of arrival (AoA) that can be used for sensing or to determine location. AoA enables a much greater degree of location accuracy as the reader uses the angle information to triangulate to sub-meter levels of precision.

A beacon transmits the same identifier to all receivers. The application on the receiving device decides what, if any, actions should be taken. This communication enables actionable insights that initiate specific activities. For example, patient data can immediately be displayed on a healthcare worker’s tablet when they enter the individual’s hospital room.

Bluetooth beacon protocols

Multiple protocols are used to implement the communication capabilities of Bluetooth Low Energy beacons.

iBeacon was released by Apple in 2013 to enable communication between beacons and mobile devices. The iBeacon protocol supports the transmission of a single three-part identifier (UUID, Major and Minor device numbers).
Eddystone is an open source and cross-device protocol introduced by Google in 2015. The protocol supports four different packet types.
AltBeacon was launched by Radius Networks in 2014. It is an open source protocol that is compatible with a wide range of beacon applications.

The three protocols employ Bluetooth Low Energy technology and use channels 37, 38, and 39 to avoid impacting WiFi traffic.

Other proprietary formats exist but they tend to be layered on to these popular protocols.

Bluetooth beacon range and accuracy

The range of Bluetooth Low Energy beacons is dependent on the specific beacon, the chipset used, the antenna, and its intended use. While the theoretical range is about 100m, the typical transmission range is 30m with no obstructions. Battery consumption increases with the beacon’s range.

The received signal strength indicator (RSSI) can be used on the reading device to detect broadcasts and different ranges. Devices using Apple iBeacon protocol use three ranges that allow actions to be taken by the receiving devices and the applications that are called.

Far initiates an activity as soon as the device is in range of the furthest reach or the weakest signal from the beacon.
Near performs an action as the receiver moves closer to the beacon.
Immediate actions are initiated when the receiver is extremely close to or touching the beacon.

The accuracy of Bluetooth beacons when measuring distance from the reader is at closer ranges such as 1.5 meters. The further the reader is from the beacon the harder it is for the reader to understand the distance from the beacon. More precise location information can be obtained by receivers using angle-of-arrival (AoA) and trilateration.

Applications of
Bluetooth beacons

Bluetooth beacons are used for a wide variety of positioning, location, and proximity marketing applications. The following are some examples of stationary beacons in action.

Indoor navigation

Navigation in large, interior spaces is enabled through the use of a network of beacons. This service can be implemented for human use in settings such as an airport, a shopping mall, or a hospital. It can also be used for autonomous devices like robots maneuvering in an industrial setting. Googles’ Waze app uses beacons to understand the location of phones when traveling through road tunnels.

Proximity detection

Using the far, near, or immediate ranges allows Bluetooth beacons to transmit specific information based on the proximity of receiving devices. Retail establishments use proximity detection to deliver targeted advertising and promotions. When deployed in a setting like a museum, beacons can communicate with a receiving app to provide informative details regarding an exhibit or display.

Mobile Bluetooth devices, also known as Bluetooth tags, can be attached to or embedded in items and increase the ways that beacon technology can be used in a wide variety of industries as demonstrated in the following examples.

Consumer packaged goods (CPG) and grocery items can be traced for a better understanding of their movement and condition. This enables suppliers to ensure the freshness of delivered goods, reduce waste, and leads to more satisfied consumers.

Apparel and soft goods can make use of Bluetooth tags to improve consumers’ in-store experience, optimize inventory, evaluate customer behavior, and reduce theft.

The pharmaceutical and healthcare industries use Bluetooth tags to maintain the visibility of equipment and supplies. The sensing capabilities of the tags can help deliver quality care and maintain regulatory compliance.

Reusable transport packaging (RTP) is widely used in commercial supply chains. Shipping crates and pallets can continuously communicate their status for increased inventory precision, freshness monitoring, and waste reduction.

The use of Bluetooth tags in these industries provides multiple benefits that include:

Improving the customer experience and promoting customer engagement
Increasing efficiency and reducing waste
Promoting better health outcomes by ensuring equipment and medicine are readily available

Implementing Bluetooth beacons

Implementing a Bluetooth beacon system involves several steps that vary according to how it will be used. Some implementations can benefit from the use of Bluetooth stickers such as Wiliot’s IoT Pixels. Stickers are Bluetooth tags that can be applied to or embedded in any type of item to facilitate tracking its movement and condition. When attaching the stickers to a stationary point of interest, such as an end-cap shelf in a retail store, they can act as a beacon or location reference point.

Wiliot’s IoT Pixels are available in both a battery-powered and a battery-free model. The battery-free version of the device harvests its energy from ambient radio waves and eliminates issues related to battery replacement that may impede implementing the devices in specific usage scenarios. These Bluetooth stickers have a virtually limitless lifetime and save the time and expense of scheduling and performing manual battery replacement.

The following steps are involved in the implementation of a Bluetooth system.

1

Selecting the hardware

Determining the right type of Bluetooth hardware devices is dependent on how they will be used. Stationary beacons are an appropriate choice for indoor navigation and proximity marketing. Bluetooth tags are the right choice for tracking and monitoring the real-time location and condition of goods and assets.

Customers need to consider multiple factors when choosing the correct beacons for their specific usage scenarios. Variables that need to be taken into account include:

Transmission range - The beacons need to have the necessary range to effectively perform their role. Inadequate range can result in dead zones or gaps in coverage that impact the efficiency of a beacon network. Practical range can also be impacted by the directionality of the antenna used. Omnidirectional antennas offer more consistent range, while directional antennas provide a longer range but in more limited areas and directions relative to the beacons.

Expected battery life or power source - The battery life of a beacon can be a major factor in the amount of support required to maintain its functionality. Battery replacement is a manual task that requires personnel to physically visit the beacon to ensure a consistent power supply. Other power sources involving connection to external power sources present significant installation costs that can dwarf the capital cost of the beacon itself. Battery-free alternatives eliminate this potential issue.

Durability - The durability of a chosen beacon model needs to address the specific conditions under which the device will be deployed. For instance, beacons that will be used in an outdoor setting need to be able to withstand the elements and a wider temperature range than those chosen for indoor use.

Aesthetics - If beacons are present in environments such as museums or retail where looks are important, the visual design of the device becomes a factor. This may include the ability to customize the text and graphics on the device or the color so it blends into the walls.

Manageability - In a deployment where there may be many thousands of beacons deployed over large numbers of sites, the ability to integrate with a management framework that is blessed by the IT organization that will be responsible for upgrading firmware and detecting and fixing issues becomes essential.

Protocol support - Most devices support Apple’s iBeacon protocol but this lacks security, management and privacy features and doesn’t leverage the latest Bluetooth SIG protocol enhancements that enable greater locational accuracy. Many vendors have additional proprietary extensions and alternatives to address these shortcomings.

2

Choosing the software

Bluetooth beacons do not provide much utility by themselves. They need to interact with software that translates their signals into actionable insights that may initiate an activity. Applications on phones are often used for indoor navigation. Cloud-based software provides the flexibility required to enable communication between beacons and users’ mobile devices or to a centralized engine from which organizations can process the information transmitted by the receiving applications.

3

Configuring & integrating the beacons

Stationary Bluetooth device placement should be well thought out using a floor plan of the structure where they will be deployed. The goal is to use the minimum number of beacons without introducing any dead spots where transmission is not visible. After installing the beacons, trials should be conducted to ensure they are connecting to the mobile apps with which they communicate. If gaps are found in coverage, the beacons should be repositioned before performing further testing. Once satisfied with the communication capabilities of the beacon network, the information they send can be integrated into other systems through the mobile device’s receiving apps.

Detecting a Bluetooth beacon simply requires a Bluetooth enabled device running software designed to understand the data transmitted by the beacons. The ease with which communication is established is one of the reasons for the popularity of Bluetooth technology in the usage scenarios previously discussed.

How much does a
Bluetooth beacon
cost?

Bluetooth beacons are inexpensive items that typically cost between $5 and $35 depending on the device’s battery life and features. Devices offering extended range and other advanced features may run as high as $50. Certain beacons, such as those provided by Wiliot can be purchased in volume for 10c to $1.50. Other factors that influence the price of a beacon include its power, durability and form factors. Before committing to a specific beacon, you should have a good idea of where and how it will be used. Your intended use may determine whether you opt for stationary beacons or mobile tags, and the durability required of the devices.

Something to consider when purchasing beacons are discounts offered for bulk purchases or promotional packages that include access to software to facilitate the deployment and use of the devices.

Limitations and considerations regarding beacon deployment

These limitations and aspects of Bluetooth beacons need to be understood before committing to deploying a system.

Bluetooth enabled gateway or hub devices are generally required to communicate with the beacons to manage them and monitor their status. This may present a constraint in certain usage scenarios.
Other wireless devices in the area may cause interference and impact the effectiveness of a deployed beacon network.
The upfront costs associated with obtaining the hardware and software necessary to deploy an operational beacon system can be substantial. The hardware costs for a large implementation of beacons can pose a challenge to companies deciding whether to adopt the technology. This capital cost is often dwarfed by the expense of paying an individual in a van required to install and maintain beacons.
Privacy concerns revolve around the ability of beacons to be used for location tracking. These privacy issues need to be understood and efficiently addressed when implementing any type of customer-facing, beacon-based system.

Best practices for deploying beacons

Multiple factors must be addressed when deploying beacons to address a specific use case. They should be addressed in the planning phase of the deployment to ensure the beacons provide the expected functionality and benefits.

Define the specific business or technical objective the beacons are designed to address. This objective will impact all subsequent decisions when designing and deploying the system.
Develop a viable plan for beacon placement based on the objective and physical space the system will occupy. Consider the number of gateways that are necessary to effectively cover the area and maintain data flow. This plan should be the product of communication and agreement across the many stakeholders that have to support a broad deployment (including IT, security, custodial, location managers, branding/merchandising/marketing).
Scalability should be considered for large implementations and systems that demonstrate the potential for growth. Ideally, the system should be flexible enough to handle fluctuating business requirements.
Configure the beacon address parameters such as UUID, major, and minor values which define the device’s identifiers. The identifier is used to communicate with applications. Its values are dependent on the beacon protocol used, such as iBeacon or Eddystone.
Perform testing and conduct a pilot program before deploying the system. Work out any issues before allowing the system to be used by customers or for important business processes.
The post-deployment beacon maintenance and monitoring needs to be understood so appropriate resources and procedures can be put in place. In some cases, periodic battery replacement may need to be performed. Damaged or inoperative beacons need to be identified through monitoring and replaced to maintain system operation.
Security and compliance concerns need to be incorporated into the beacon deployment. Ensure that all data transmission is encrypted and that only trusted and authorized applications are used to interact with the beacons.

Bluetooth beacon security and privacy

Security and privacy can be issues of concern regarding Bluetooth beacon systems and the information they can gather and store. As with all technological solutions, there is the potential for misuse of the devices that can result in problems surrounding security and privacy.

Unauthorized access to data

Attackers can spoof or hijack a Bluetooth beacon and use it to deliver alternate IDs that affect the receiving application and may result in it suggesting unintended actions or activities. While such exploits have received coverage in the press, actual incidents have been rare.

Location tracking

Malicious use of location tracking can be performed with Bluetooth beacons for purposes such as user profiling. The danger is in a malicious actor accessing a user’s mobile device or compromising the data it is communicating to the cloud. While beacons themselves can’t track users, the apps that use them can, so using applications from a reputable source is key.

Interference with other Bluetooth devices

In settings where a large number of Bluetooth devices are transmitting data, there can be interference as signals collide and information is lost. This can affect the performance and accuracy of the beacon system. Typically Bluetooth beacons don’t generate interference because they broadcast for short periods of time, but if the shared advertising channels become saturated by other devices then application performance can become degraded.

Minimizing these security concerns can be done by implementing the following best practices.

Data encryption should be implemented to ensure that information transmitted by the beacon and the receiving app are protected. The receiving application may be in communication with cloud resources and all data flows should be protected by encryption.
Data collection should be limited to the minimum amount required to implement the functionality of the beacon system. There is no reason to collect personal information from a mobile device when simply offering information regarding indoor navigation or positioning. Companies deploying Bluetooth beacon systems need to be cognizant of the privacy of the individuals with which they are interacting. Operating systems and app stores typically require disclosure when beacons are being used.

Future of Bluetooth beacons

The potential uses of Bluetooth beacons will continue to grow as the technology matures and devices are introduced that provide extended range and accuracy. The following are some examples of the innovative ways Bluetooth beacons can be used to improve commerce, industry, and society.

Beacons with extended range and increased accuracy will allow location and navigation services to be offered in more diverse settings. Personalized experiences can be crafted for visitors to museums, amusement parks, and other tourist sites through dedicated applications offered to individuals by the venues. Navigation for visually impaired users is a popular use case for beacons. Better indoor position accuracy can be used to increase the precision of location information provided to emergency services when calls for help are received, sending ambulances to the exact office or hotel room where someone is in distress.

Mobile beacons and Bluetooth tags have the potential to address some of the world’s sustainability issues by enabling effective carbon footprint tracking. The devices can be used to collect reliable and real-time data regarding greenhouse emissions generated by the manufacture and transportation of goods. Knowing the location of assets and inventory is key to measuring their carbon footprint. Decision-makers can use this knowledge to modify business practices and procedures in ways that reduce emissions and promote operational sustainability. Reducing carbon nearly always reduces cost and can be a significant driver of profit. Being able to measure these things with minimal manual intervention is key to competitive viability for any enterprise in the future.

Travel can be enhanced with Bluetooth beacons as evidenced by the use of the devices in tunnels to eliminate the dead spots that plague users’ GPS navigation apps. The use of beacons promotes safety and improves traffic flow.

Augmented reality is the convergence of the surrounding environment with layered virtual objects. Bluetooth beacons can be used to communicate with a user participating in augmented reality to provide a more immersive experience.

Physical web or living web - Beacons that broadcast web addresses can be used to enable a browser experience that allows places and things to be browsed from the phone. Google pioneered the Eddystone Physical Web protocol that enabled this with some early success. After some internal machinations they withdrew the feature, but it is likely this will reappear in the future enabling the creation of digital experiences that are mapped onto the physical world without the need to develop apps. Restaurants, museums, stores will become browsable, unlocking interactive features, information about context, provenance, carbon footprint and authenticity.

The market for Bluetooth beacons is expected to continue its impressive growth for the foreseeable future. The global value of the Bluetooth Low Energy Market was $2 billion as of 2019. It is expected by some analysts to grow to $69.2 billion by 2030 for a CAGR of 36.9% between 2022 and 2030. With the advent of ambient IoT that has an addressable market for tags and beacons of 10 trillion units according to the Bluetooth SIG and industry analyst ABI Research the numbers could grow much larger, much faster.

Bluetooth beacons are an affordable and flexible solution that lend themselves to a wide variety of location and tracking usage scenarios. They employ Bluetooth Low Energy technology to minimize energy use and maintenance requirements. Bluetooth beacons can be deployed as stationary devices to facilitate indoor navigation and proximity marketing. They can also be implemented as mobile tags which can be used to track the location and condition of goods and assets.

The future holds promise for more extensive use of Bluetooth beacons in commercial, residential, and industrial settings. By providing access to context-aware services and initiating relevant actions, the use of Bluetooth beacons will continue to flourish to foster communication with human and autonomous mechanical devices.

You can learn more about the technical details, business opportunities and standards driving Bluetooth beacon technology from this comprehensive guide written by one of our executives. The book contains insight from over a dozen industry experts on how to use this innovative technology to solve problems in many diverse industries and businesses.

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A Complete Guide to Bluetooth Beacons

What is a Bluetooth beacon?

What is a Bluetooth beacon?

How Bluetooth beacons work

BLE vs. Bluetooth Low Energy

Bluetooth beacon protocols

Bluetooth beacon range and accuracy

Applications of Bluetooth beacons

Indoor navigation

Proximity detection

The use of Bluetooth tags in these industries provides multiple benefits that include:

Implementing Bluetooth beacons

1

Selecting the hardware

2

Choosing the software

3

Configuring & integrating the beacons

How much does aBluetooth beacon cost?

Limitations and considerations regarding beacon deployment

Best practices for deploying beacons

Bluetooth beacon security and privacy

Unauthorized access to data

Location tracking

Interference with other Bluetooth devices

Future of Bluetooth beacons

Frequently asked questions

What is a Bluetooth beacon?

What is a Bluetooth beacon used for?

How much does a Bluetooth beacon cost?

Can a phone be used as a Bluetooth beacon?

Are Bluetooth beacons safe?

What is the difference between Bluetooth and a beacon?

How do beacons work?

You Can Sense the Revolution

BLE vs.
Bluetooth Low Energy

Applications of
Bluetooth beacons

How much does a
Bluetooth beacon
cost?