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Like many others, Neustar is banking on the “proliferation of smart phones” (currently at about 25% market penetration – what about the other 75%?).
In addition, they are betting that the vast majority of mobile phone consumers will be savvy enough to buy a smart phone, download and use apps, LBS, QR, Mobile Web, Augmented Reality and whatever other high tech, smart phone based mobile solutions evolve. For brands, such solutions will be very expensive to develop and maintain given the lack of standards across multiple mobile operating systems and carriers.
Matt’s comments represent a world dominated by mobile technophiles, not basic block and tackle sales and marketing people trying to reach the widest possible audience.
The question they should be asking is how to best leverage existing dominant mobile platforms and reach the majority of mobile phone consumers TODAY, which is a market still dominated by heterogenous feature phones and low tech end users.
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Joe:
Yes I agree that the proliferation of the smartphone is key to barcode success, but the adoption rate is faster than previously expected. Nielsen is projecting that by 2011 that smartphones will make up 50% of the device mart, and that this increase will be so rapid, that by the end of 2011, Nielsen expects more smartphones in the U.S. market than feature phones. Research firm IDC said it expects the smartphone market to grow 55 percent this year, a greater increase than its previous prediction.
Neustar does also recognize that mobile phone users are going to use whatever access and discovery mechanism works best for them for some that will be SMS and ShortCodes, for others that will be mobile search, and others that will be 2d barcodes. It will also depend on where the user is, what they are doing at the time. Just as with traditional media and advertising, brands will have to research what their target audience responds to and then tailor their mobile program to reach them. In many cases they will employ multiple mobile access and discovery methods to reach the widest audience.
Neustar manages and operates the U.S. Common Short Code (CSC) Registry on behalf of the CTIA and the wireless carriers. It’s this service which helped fuel reach and scale for advertisers using CSC based SMS advertising by ensuring interoperability and compatibility so practically every consumer in the US can participate in an SMS mobile marketing campaign. Neustar is looking to help bring this same reach and compatibly to the mobile 2d barcode space, which will allow brands to choose the competitive solution that they wish, but still be able to have the largest reach.
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Peter Langlois
Jeff Neuman
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