Mobile Marketing

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You may have seen yesterday’s article in Mobile Commerce Daily: “How To Compromise the Starbucks Rewards Card App in 90 Seconds.” It shows how easy it is to steal an image of another person’s barcode without their knowledge and use it to pay for merchandise.

This is a basic flaw in the application that fails to authenticate the identity of the person using it.  Let this be a reminder that when implementing mobile applications, security cannot be an afterthought.  These are the kind of technology loopholes that put brands and consumers at risk.

We’ve advocated the need for a central clearinghouse to provide security and privacy for 2D barcodes.  Our mobile barcode clearinghouse offers several ways to defeat this kind of security hole.

First, it could check the location of the phone registered to the particular card, and if the location where the transaction is being requested is inconsistent with the location of the phone, deny the transaction.

It could also send an alert to the customer at their registered phone number, informing them of each purchase.  While this will not stop fraud, it will expose it rapidly.

Our identity registry function for 2D barcodes allows retailers to link the user’s ID/phone with the card at registration.  Then the ID can be validated at any purchase scan to determine if the handset is the same one originally associated with the ID.

In the case of Starbucks, it is apparent that they did not implement this kind of identity schema at the handset level in their application.  In the rush to develop the newest application, many companies are sacrificing quality and could be putting consumers at risk.

According to McAfee‘s fourth-quarter threat report, “cellphone security threats grew significantly in 2010, as “a proliferation of Internet-enabled mobile devices” laid the groundwork for cybercriminals to target the increasingly popular smartphones and tablets that now thoroughly populate our world.” (Mobile Marketing Watch, February 8, 2011)

For mobile marketing to continue to succeed, consumers must feel confident that their personal information won’t be compromised. It is up to the brands ensure that their applications have the appropriate safeguards in place to prevent identity theft and deliver a secure user experience.

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Last Christmas Smyth Jewelers launched a marketing and advertising campaign titled “15 Deals in 15 Days” which featured 2D barcodes. The barcodes appeared on large banners hanging outside the company’s retail stores during the month of December and offered consumers a new deal each day during the campaign.

Mobile’s Next Big Thing editor Meredith Bagnulo talked to John Jackson, Vice President of Operations at Smyth Jewelers about the company’s experience.

MNBT: Tell me a little about the campaign and how you came up with the idea?

Jackson: Early last year we learned about QR codes and our advertising firm approached us with the idea of incorporating them into a campaign focused around the holidays. We launched the “15 Deals in 15 Days” campaign using giant banners with QR codes outside of our stores and customers would come scan the code on their way into the store. This created quite a stir in the local Baltimore community.

Everyone sees QR codes at the bottom of fashion magazines, but this was a gigantic, in-your-face advertisement and people came and asked what it was all about.  It was a fun way to introduce our customers to this new technology.  We also placed them in ads and on business cards and people really had a lot of fun with it. It was also a great marketing tool because of all the analytics that came with it.

MNBT: What happened when people scanned the code, where did it take them?

Jackson: We used a very simple code that consisted of a simple screen shot and for any purchase that day if you showed the screen you received a free pearl bracelet and 25 percent off you purchase.  The screen consisted of simple red and green Christmas colors.

MNBT: What was the reaction from your customers?

Jackson: Although Smyth Jewelers has been in business since 1914, our audience spans across generations and we are in touch with the younger generation, their parents and grandparents who shop at our stores.

There were three different types of reactions. Among the younger audience — the ones reading Vogue and other fashion magazines – they thought it was cool. They use 2D barcodes all the time when looking at magazines so they were familiar with what to do and loved it.

For more of the middle-aged audience, they had seen QR codes, but weren’t sure what they were. So, after we explained how it worked most of them downloaded a scanner and tried it and were impressed.

Then there were the older folks who didn’t know what it was. Once we explained how it worked, they thought it was a fun advertising medium but were not ready to try it out. Instead, they just asked us what the deal of the day was and we told them.

MNBT: Are you planning to use QR codes in future marketing/advertising campaigns?

Jackson: This was the first time we tried using QR codes and we have learned a lot. We have already started using them with some of our vendors as well as in print media to direct people to our website and stores. When the QR code is scanned it pulls up the locations of our stores and how to get there.  We are in our infancy in our use of QR codes, but see endless possibilities for them. We also like that QR codes are trackable, with analytics to find out how many people are hitting our site.

MNBT: What other mobile marketing tools do you use to reach your customers?

Jackson: We have used Netbooks for several years for merchandise inventory. This allows us to look up certain product lines not available in our store and compare prices, etc.  Our next step is to look at iPads and either have all salespeople with an iPad or have them available throughout the store to show people product information and pricing for jewelry that is not in stock.

MNBT: How big is mobile in your overall marketing/advertising strategy for 2011?

Jackson: Mobile is taking a bigger role in our strategy.  Most people read everything online nowadays — even coupons are online. But is also depends on what you are advertising. For bridal/engagement rings we will go more high-tech because that is where our target audience is. When people get engaged, they go to Internet for information.

We also do a lot of advertising via mobile and Internet including Twitter and Facebook. This is wave of the future and I want to be on the cutting edge which is why we started the QR code campaign last year.

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Small Planet Organics founder Phil Spiegel, also known as “Tofu Phil,” embarked upon a new campaign to add 2D barcodes to its product labels to connect with customers and provide videos, coupons and recipes about the company’s products. According to Phil, 2D barcodes level the playing field by giving small businesses easy access to this mobile technology to reach new and existing customers.

Listen to internet radio with Mobiles Next Thing on Blog Talk Radio

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Next Wednesday leaders in mobile marketing will convene at the Mobile Marketing Association’s (MMA) Consumer Best Practices (CBP) Forum in Boca Raton, Florida.  The MMA has more than 750 member companies, representing over forty countries around the globe and all members of the mobile media ecosystem.

 

The CBP Forum is an opportunity for members as well as the general public to provide input into the guidelines and best practices for mobile marketing in the U.S. These new guidelines and best practices will become part of the organization’s Global Code of Conduct and will be included in updated versions of the Consumer Best Practices guide.

 

The focus of the guidelines is to ensure consumer transparency.  Among the issues to be covered at this year’s forum include best practices for messaging, mobile web, applications, advertising, commerce and privacy.

 

Greg Stuart, CEO of the MMA talked about the guidelines in this press release from December 20th in which he states: “The industry recognizes that in order for marketers and publishers to responsibly and sustainably engage consumers through and with the mobile channel, we need to continuously update how we address the collection, management and use of personal data or related consumer information.”

 

The last time that the U.S. Consumer Best Practices Guidelines for Cross-Carrier Mobile Content Program were updated was in June 2010. You can find the current guidelines here: http://mmaglobal.com/bestpractices.pdf

 

Neustar is excited to participate in this event which is open to the public. We feel strongly that by supporting and following these guidelines brands, campaign managers and carriers can provide the most successful consumer experiences that will accelerate the adoption of mobile technology and applications.

 

Please feel free to post a comment and share your thoughts around best practices for mobile marketing as well as what still needs to be done to ensure a secure, valuable and private consumer experience.

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Last month we spoke with Bluefly’s CMO Bradford Matson on the company’s use of 2D barcodes in the Closet Confessions campaign. Now, Mobile’s Next Big Thing talks to Marty Keane, SVP of e-Commerce about the company’s mobile marketing strategy for 2011.

Listen to internet radio with Mobiles Next Thing on Blog Talk Radio

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As the end of the year quickly approaches, we thought we’d take a look back at how far along 2D barcodes have come over the past year.  There were definitely some memorable 2D barcode campaigns that captured a lot of media attention. Many companies in various industries have embraced the technology and integrated barcodes into their marketing and advertising campaigns.

 

Calvin Klein made headlines in the marketing industry when it replaced provocative photos on billboards across New York City with large barcodes that could be scanned to reveal a 40-second commercial featuring models Lara Stone, “A.J.,” Sid Ellisdon, Grayson Vaughan and Eric Anderson. There was a great story in Mashable on this campaign: “Calvin Klein Jeans Replaces Racy Billboards with QR Codes”

 

At the SXSW Interactive show this past spring, QR codes appeared all over the show’s promotional materials including flyers and postcards as well as on people’ business cards and t-shirts. There was even a QR code on each attendee’s badge for quick access to their contact information.  See the Fast Company article What Business Card? Just Scan My QR Code for more details on this clever use of QR codes.

 

Here’s a look at some of the various industries that have tested this new technology in 2010:

 

Arts & Entertainment (IronMan2, True Blood)

Automobile (Chevy, Mazda)

Education (George Mason University)

Publishing (Washington Post)

Retail (Calvin Klein, Bluefly)

Real Estate (Coldwell Banker)

Sports (Detroit Redwings)

Transportation (American Airlines)

Travel & Tourism (Canadian Tourism Commission)

 

We’ve also seen some interesting recaps of mobile barcode campaigns pop up over the past few weeks:

 

That’s Great!, a blog written by Great! CEO and Ideologist Dan Smigrod, recently listed the Top 101 Major U.S. National Brands Using 2D Barcodes. Among those on the list are Barnes & Noble, Crayola, Coca Cola, Disney, Nike, Nieman Marcus, Mountain Dew, and more.

 

Warbasse Design, the company who brought 2D barcodes to the movie promotion industry with IronMan2, Tron and others, recently released a 2010 Designer QR Codes –  A Year in Review which highlights the company’s campaigns.

 

This year also delivered some initial statistics on the size of the barcode market.  In October ScanBuy reported a 700 percent increase in the use of mobile barcode scans as viewed from its own network, and Microsoft has claimed that more than 2 billion of its TAGS have been printed.

 

While all this activity clearly demonstrates growth, 2D barcodes remain an emerging and nascent technology. Since there are so many companies out there using so many different barcode technologies, it is hard to get an aggregate of the market as a whole.

 

2010 was a great year for 2D barcodes, but we are still not close to widespread adoption. There are still challenges with interoperability, proprietary technologies and an overall lack of awareness among consumers. There needs to be  standardization around barcode readers and symbologies, so there is less confusion for the end user consumer.

 

We expect the growth to continue into 2011 as more marketers embrace mobile tools and technologies and interoperability issues become resolved, and as consumers understand what to do when they see a barcode. Keep an eye out for our 2011 outlook post in early January for more details on where we see the market heading next year.

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Earlier this year online fashion retailer Bluefly incorporated 2D barcodes into its “Closet Confessions” TV ads. MobileNextBigThing speaks with Bradford Matson, CMO of Bluefly about the campaign.

Listen to internet radio with Mobiles Next Thing on Blog Talk Radio

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It’s been a fun holiday season watching all of the innovative uses of 2D barcodes in holiday campaigns.  Leading up to the holidays, we anticipated an increase in the use of 2D barcodes by retailers looking to draw mobile users into stores with special promotions and videos (see blog post “It’s a Mobile Holiday Season for Retailers”).

Here’s a look at some of the most creative uses we’ve seen:

Target Holiday Toy Catalog

This year’s Target holiday toy sale catalog was sprinkled with QR codes that when scanned led consumers to videos with more information. Another code located in the coupon section took shoppers to a mobile site where they could buy items and receive discounts directly from their mobile device. (Source: http://www.barcode.com/QR-codes-and-2D/how-target-is-making-history-with-toys-and-qr-codes.html).

All Wrapped Up

One company created wrapping paper covered with QR codes. On every sheet of this 20″x30″ QRapping paper there are 50 unique QR codes that, when scanned, let you view an original holiday video. (Source: http://phandroid.com/2010/12/07/just-in-time-for-the-holidays-qrapping-paper/).

Postcard from Santa

The 2d Code blog wrote about a postcard campaign using QR codes to promote an interactive Web storybook for children. (Source: http://2d-code.co.uk/santas-qr-code/).

12 Days of Tag

P. Diddy and Microsoft Tag launched the “12 Days of Tag” to promote the release of his new album Last Train to Paris, and donate $50,000 to charity. Diddy used Twitter to promote the exclusive giveaway, tweeting to followers how to find the content, scan the Tag, and unlock the gift via smartphone, either iPhone, Android, BlackBerry or Windows. People could access exclusive content from Diddy himself or vote for which charity you would like to receive a $10,000 donation. (Source: http://www.looktothestars.org/news/5519-diddy-and-microsoft-tag-to-give-away-50000-to-charity).

Sears Wish Book

Sears added QR codes to the print edition of its holiday Wish Book catalog that, when scanned, led the consumer to additional product information and videos. (Source: http://www.dmnews.com/sears-enhances-wish-book-for-the-holidays-adds-qr-codes-to-catalog/article/190584/).

15 Days, 15 Deals

Smyth Jewelers launched an interesting campaign for Christmas called “15 Days, 15 Deals” and placed QR code banners outside of each of its three stores.  Users who scanned the “15 Days, 15 Deals” QR code with a smartphone were taken to a landing page that promoted daily and seasonal specials. (Source: http://www.jckonline.com/2010/12/16/retailer-week-smyth-jewelers)

The holiday season has been a great time to showcase the value and utility of 2D barcodes, especially in the retail industry. As we head into 2011, we look forward to playing a leading role in streamlining the adoption of mobile barcode technology through our clearinghouse model.

Please feel free to add to this list and share some of your favorite mobile barcode holiday campaigns via a comment.

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Building a strong brand begins with building a strong product. Last week, Wikipedia founder Jimmy Wales talked with Fast Company about this in colorful terms – he thinks the key to success is “making things that don’t suck.”

For all the time, effort and money it takes to build a strong brand, it only takes one bad experience to damage your brand image. In today’s always-on world, the importance of ensuring a strong consumer experience is magnified by the user’s ability to instantly trash your brand online if they are unhappy.

In addition to having good products and services, brands need to make sure the experiences surrounding their brand are enjoyable as well.

Let’s talk about mobile barcodes in this context. As more brands integrate these into their marketing and advertising campaigns, they are putting trust into the campaign manager’s ability to ensure a seamless consumer experience.

If you create a mobile barcode campaign and the result of the scan does not take the consumer where it is supposed to, they will blame the brand.  This happened to Macy’s when they placed an ad in Lucky Magazine that featured a mobile barcode. Unfortunately, when people scanned the code, nothing happened. The reason: Macy’s had planned to link the barcode to a promotional video, but the ad ran before the video was ready.

Additionally, if you create a campaign that doesn’t provide some kind of value as an end result, your brand will suffer as well.  Consumers want instant gratification, especially with mobile. If they invest the time and effort to scan a barcode, it had better work AND deliver something of value, be it a coupon, discount, video with more information, etc.

Around this time last year Esquire Magazine featured a mobile barcode on its front cover and they also appeared in several ads through the magazine. One ad in particular, for an Etro wool blazer takes you to a page on Esquire’s site where you can view pictures of Etro’s Winter 2010 fashion show. It doesn’t offer any information about the blazer itself, or any incentive for the consumer to take action, such as a coupon, or where or how they could buy. In this case, interacting with Etro’s brand delivered no end value-add for the consumer.

With Neustar’s clearinghouse approach to mobile barcodes, we can ensure a high level of trust, loyalty, and quality assurance for brands. We enable all members of the mobile ecosystem to work together, thereby creating a more seamless consumer experience. Also, the clearinghouse model allows for brands to control the user experience of when and where they want to take consumers based on their campaign goals and the shelf life of the codes in the wild.

When it comes to integrating a mobile barcode campaign, don’t get so caught up in the creative side that you forget about ensuring a good consumer experience. Ask yourself, what is in it for the consumer? Why would they want to scan your codes?

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You don’t need to look far to see that mobile retail is all the rage this holiday season.  A recent Wall Street Journal article” “Retailers Look to Mobile to Help Boost Holiday Sales,” states that “Mobile commerce sales in the U.S. will grow to $3.7 billion this year, with most of the buying coming in the holiday season, according to a study by ABI Research, which tracks the eCommerce industry.”

The reason is simple — consumers are starting to recognize the power of their mobile devices not only to search the Web and take photos, but also to research and buy products.  According to the National Retail Federation, “more than one-fourth of Americans who have a smartphone will use their mobile device to shop for gifts, compare prices and research products (or read reviews, buy merchandise, find nearby stores…the opportunities are truly endless).”

There are many benefits of integrating mobile into your marketing and advertising campaigns. In addition to boosting sales, mobile opens opportunities for up-sell and cross-sell, increases customer loyalty, gives consumers access to more detailed product information, and can draw customers into your store.

This  year we are seeing more use of mobile barcodes in retailers’ holiday promotional campaigns. There are some interesting mobile barcode campaigns and shopping applications popping up already this year from big brands.

Here are a few examples of companies that are integrating mobile tactics this holiday season:

Sears has added QR codes to the print edition of its holiday Wish Book catalog that, when scanned, lead the consumer to additional product information and videos.

Target is also incorporating QR codes into its Holiday Toy Catalog with product information, videos and the opportunity to purchase items in the catalog directly from your mobile device.

Toys R Us has launched a mobile coupon campaign that sends mobile alerts to customers who want to visit ‘Toys R Us’ and shop with exclusive discounts.

Amazon.com is targeting in-store shoppers with its barcode scanner application that lets consumers compare in-store prices with Amazon.com and then allows them to purchase the item on the spot.

The key for mass adoption of mobile barcodes is going to be the interoperability of all these different technologies. Consumers will want to be able to scan these codes and they work — not worry about the technology behind it, or if they have the right application on their phone. The mobile barcode ecosystems needs to work together to get to the point that codes can be scanned and resolved no matter what app or scanner the consumer is using.

Will you be heading to the stores or will you turn to your mobile device to shop this holiday season? Let us know what mobile campaigns you are seeing out in the marketplace and what your experience is like with today’s mobile-powered shopping solutions.

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