As reported by a number of news outlets, in-store analytics provider Nomi faces significant challenges in gaining traction with retailers and is preparing for staff layoffs. Nomi offers a mobile and in-store platform to monitor shopper traffic to help retailers advance loyalty and marketing programs and optimize store operations.

The purported reason for Nomi’s business challenges, according to published reports, is directly tied to changes Apple is introducing with iOS8 to scramble MAC addresses. MAC addresses can be used by ad networks, WiFi hotspots and other third parties to tie an individual to a specific location and potentially match that individual phone with other data for later retargeting.

Opus Research believes while the updated iOS8 changes will present challenges for those attempting to profile audiences using location or smartphone movement patterns, the industry still holds promise for technologies, such as beacons, to recognize the presence of a device in a store or other venue for analytics purposes.

Indeed, Euclid, a competitor of Nomi, recently commented on the upcoming iOS changes by Apple and sees a rosy outcome:

We fully support Apple’s decision to add additional layers of consumer protection by randomizing MAC addresses at the device level.  Providing additional privacy safeguards at the device level will help address any lingering privacy concerns with Wi-Fi based analytics.  We see a major win-win for retailers looking to deploy mobile locations analytics and the consumers they serve.

More than likely, competitive forces, technology challenges, and privacy concerns will see the indoor location industry evolve to embrace opt-in strategies for in-store marketing as part of a retailer’s “omnichannel” approach in communicating with customers.

Categories: Conversational Intelligence, Articles, Mobile + Location

Tags: Apple, Wi-Fi, ad networks, Nomi, Consumer protection