How to Engage Gen Alpha Through Proximity Marketing

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Gen Alpha consumers have some fascinating traits that set them apart from previous generations. As the children of Millennials who witnessed or contributed to technological growth, they are equipped with the tools and know-how to thrive in a highly digital society.

How can retail and hospitality business owners adapt their proximity marketing campaigns to anticipate and respond to their needs? Read on to find out!

What Is Proximity Marketing and Why Is It Important?

First things first, let’s clear up the buzzword of the day: what is proximity marketing and why do we need it?

Proximity marketing solutions (or local marketing) can be any type of in-store advertisement such as traditional or digital signage. Smartphone notifications based on GPS location or other tracking methods also fall under this umbrella term.

Nowadays, we mostly refer to proximity marketing when we talk about the wireless distribution of ads according to particular shopping locations.

Types of Proximity Marketing Devices and Software

The main types of indoor location technologies which retailers can use are:

• Wi-Fi technology

• Bluetooth Low Energy (BLE) technology

• Geofencing technology

• NFC tags and QR codes

• GSM-based systems

Wi-Fi Technology
Wi-Fi-enabled systems can detect signals from any device equipped with Wi-Fi. They are often used in retail to detect the number of devices present in a shop, detect shopping behaviour patterns, and optimise marketing campaigns.

Bluetooth Technology (iBeacon)
Ad distribution can be done when a Bluetooth-enabled device is within range of a transmitter.
Beacon solutions can also rely on consumers having an app installed. When shoppers are near a beacon, the app displays an ad or personalised offer.
Many believe Bluetooth drains battery — but BLE (Bluetooth Low Energy) only uses 1–3% per day.
Retailers often prompt users to turn Bluetooth on to receive content.

Geofencing Technology
Uses GPS to define a virtual perimeter. A device entering that zone can trigger content delivery — if push notifications are allowed.

NFC and QR Codes
NFC and QR codes allow consumers to opt in to receive content by scanning.
Here’s a breakdown of how NFC and QR differ.

GSM-Based Systems
Retailers can use mobile networks to send SMS promotions and track store visit durations.

Why You Need Effective Proximity Marketing Solutions

Keeping consumers' attention is more challenging than ever in a world that continually bombards us with news and other forms of information.

That’s why personalisation is so important in today’s retail environment—especially for in-store advertising. It can significantly impact how customers perceive commercial content.

Most buying decisions occur spontaneously in-store, which means local marketing has real potential to drive results.

The more relevant your offer, the better it will be received—ultimately increasing sales.

Consumers today want less spam and more utility. Millennials have pushed for this, and Gen Alpha is expected to demand even more relevance and quality from marketing.

What Is Generation Alpha and How to Cater to Them via Proximity Marketing?

According to Australian social analysts McCrindle, Gen Alpha includes those born between 2010 and 2025.

They’re defined by:

• The gamification of learning

• High interest in sustainability

• Deep familiarity with technology

Generation Alpha Consumer Traits

When designing your campaigns, consider these key Gen Alpha traits:

• They are considered "upagers" – maturing earlier both socially and commercially

• Highly tech-savvy and comfortable with AI, VR, and mobile from a young age

• May lack some practical or risk assessment skills

• Value inclusivity, sustainability, authenticity, and connection

• Are not just consumers, but also creators and influencers

• Will be financially literate and familiar with digital transactions

• Prefer modern, tech-driven marketing formats over traditional methods