Apple iBeacons used by Golden State Warriors NBA team

Apple Inc.’s (NASDAQ:AAPL) iBeacons have been adopted by a number of retailers and sports teams, but today’s launch of the system by the Golden State Warriors represents the first use of the bluetooth communications technology by an NBA team. Major League Baseball, or MLB, teams have already implemented the devices in a number of different venues across the country. However, the Golden State Warriors’ usage is the first example of the NBA utilizing iBeacons, which are now active at Oracle Arena.

Thus far, the main use of these small, low-energy broadcasting devices has been to sell seat upgrades to people in the “nosebleed” section. Other information is also offered, however, much of it simply useful and not directly commercial. The iBeacons are being used, in short, to provide a better all-round experience to basketball fans visiting Oracle Arena, building goodwill in addition to selling better seating spots to latecomers.

Some of the data offered shows the flexibility of Apple’s (AAPL) iBeacons and their ability to disseminate real-time data that can be used for immediate benefit. For example, the Oracle Arena iBeacons also provide a parking map and a “View Traffic” function that shows live traffic conditions in the sports venue’s immediate area. This use of the beacon system will even benefit those who are not attending the game, since it will distribute vehicular traffic near the Arena more rationally and lessen the chance of traffic jams. Other sections provide articles on an “E-Magazine” and a “Fan Photos” section.

Of course, ticket upgrades are the most immediately profitable elements of the process for the Golden State Warriors, and there is objective evidence that iBeacon is generating additional revenue. Out of those attending the game, approximately 30 percent are believed to be receiving and reading iBeacon notifications on an Apple (AAPL) mobile device. However, 50 percent of seat upgrades are being purchased by people using the iBeacon data. This, by a very rough bit of statistical “guesstimation,” seems to indicate use of the iBeacon system has increased the number of seat upgrades purchased by no less than 40 percent.

A 40 percent rise in any type of sales is an important boost for any business. Though the iBeacons are not likely to vastly multiply the profits of Oracle Arena, there is already solid evidence that they will add a juicy premium to existing sales. The outlay required for deploying and maintaining several dozen iBeacons is already showing a robust return on investment for the sports facility. No doubt other NBA teams will soon follow the Golden State Warriors’ example, and the spread of the iBeacon will continue.