Individuals whose eyes are trained to recognize the QR Code symbology (see above graphic) will surely attest to the rapid proliferation of placements within the marketplace. They can be found within store windows, on product packaging, in direct mail advertising, even within the humble dwellings of our spice cabinets. (To anyone that might be en route to the kitchen in attempt to disprove this concept, you might as well throw out the expired spices in the back…). These examples are just a few that typically relate to marketing, but if you are interested – there is a copious amount of alternatively radical QR Code expressions throughout the web (try including ‘Tattoo’ or ‘hotel’ in your ‘QR Code’ search).

As with any ‘hot topic’, public perceptions surrounding the QR Code technology and its advertising effectiveness lack unanimity. Instead they range across a notably wide spectrum – ranging from ‘Unwavering Advocacy’ to ‘Resolute Antagonism’. It’s amazing to come across a blog or social network posting that relates to QR Code implementations, as it tends to be followed up by a considerable volume of wrangling comments. Uncanny as it may be, the profound reality is that regardless position held on the debate… Everyone is talking about QR Codes.

It is at this point that I will disclose my own ‘unwavering advocacy’ towards QR Codes. This passion holds true in my perspective as a relatively tech-savvy marketer, and potentially even more so as an enthusiastic consumer. As a consumer – I have a tenacious interest in any solution that makes my life easier, is conveniently accessible, saves me time (my thumbs can only type so fast), and gives me immediate, on-demand access to the content I want at the exact moment of impulse. Plus I get the added bonus and peace of mind that comes with knowing I am leveraging an eco-friendly/green solution (not to mention anything that gives me an excuse to pull out my Smartphone).

Advertisers here within the U.S. are just beginning to scratch the surface of QR Code innovation and application potential, and I am eager in anticipation for the maturity point that will unleash truly compelling opportunities for engagement. Unfortunately, the industry as a whole lacks a certain level of fundamental framework for this vision to become a reality.

First and foremost, there is still a great deal of consumer education required for Mobile Barcodes to reach full potential. This concept should be a guiding principal to each and every advertiser that is looking to incorporate QR Codes in their marketing mix. If a consumer lacks familiarity with the technology, is not equipped with a clear understanding of how it is utilized, and/or is deprived of an explicit & convincing appreciation for the incentive – then it would be irrational for Advertisers to set any meaningful expectations surrounding the program. This considered, establishing educational components within campaigns that deliver “real value and benefit to consumers” is absolutely critical to achieve measurable success.

Another significant area for improvement is found within the Mobile experience. Given the inherent features and personal nature of the mobile device, it is imperative to ensure a consistent and positive customer experience. Indeed the Mobile Barcode technology is an impressive one, but it merely serves as a gateway. Thus it would be absurd to hold the code accountable for any portion of the concluding experience, at least not subsequent to it resolving the associated content. In actuality it is the responsibility of those publishing codes to go through the necessary due diligence to ensure favorable end-to-end interactions; moreover, that the interactions are legitimately relevant to the consumers that scan them.

One of the most common mistakes recurring within the marketplace (and perhaps the cheapest & easiest to avoid) is directing consumers to a website that has not been optimized for Mobile. Take one moment to appreciate the simplicity of this. When leveraging a technology that enables consumers to access content through the use of their mobile device, it is only logical to assume that they will (in fact) execute this engagement via their ‘mobile device’ – and would thus be ultimately satisfied when the content is viewable in a mobile specific format. For anyone that might disregard this as ‘common sense’, I challenge you to scan 10 or so QR Codes in the marketplace prior to formulating that argument.

In an effort to benefit advertisers and provide additional value to consumers, I am compiling a document (essentially a Do’s & Don’ts) that seeks to explore these types of Mobile Barcode marketing techniques in greater depth. Stay tuned for the announcement of this document’s release and related posts.

Omar El-Ezaby is Sr. MarCom Specialist responsible for product positioning, content creation, and market strategy within Neustar’s Mobile Services division. He can be reached at omar.el-ezaby@neustar.biz.

An innovative new campaign established by the USPS — which has the official approval of the Postal Regulatory Commission — rewards marketers for using 2D barcodes in their marketing materials. Companies that use smartphone-friendly barcodes will get a 3 percent postage discount on qualifying standard and first-class mail letters, flats or cards. The campaign runs through July and August, but the Postal Service has not ruled out the idea of extending the run. They say they’ll be closely monitoring the adoption rate before making a long-term decision.

The campaign is aimed at bulk mailers that submit qualifying first-class or standard mail letters, flats or cards electronically using a permit imprint payment method. However, the discount will apply to both presort standard and first-class presort mail.

The USPS has already been moving in this direction, but the new campaign makes it clear that the organization is throwing its considerable weight behind QR codes and other interactive innovations. If your company is among those wondering when to get aboard this train, now might be the time.

Here’s what we can do to help you:

Neustar has developed an ROI calculator to help determine what your breakeven point is on implementing 2D barcodes in order to take advantage of the postal discount. Here’s how it works:
• This tool will take into consideration the number of resolutions/scans associated with a given campaign, and calculate the general cost/benefit based on various resolution/scan rates.
• For example at $0.25 postage, the 3 percent postal discount savings and an average scan price of $0.14, the breakeven is about a 5 percent response rate to the mailing.
• The breakeven will differ based on number of pieces being sent, and the price you are paying for campaign management services and price per scan.

If you would like to learn more about this discount for adding 2D barcodes to your direct mail (or any marketing campaigns), contact us at barcodes@neustar.biz.

Please also let us know of any success stories or great use cases you have seen with direct mail and barcodes.

There is a similar shift happening with 2D barcodes. The range of factors driving this technology — easy access through smartphones, increasing customer comfort with the new channel, the ability to essentially uncover hidden value — make it clear that in the right environment, there’s a major potential audience seeing a shift in barcodes from holding just pricing information to holding much more.

Here’s one example: THQ’s “Homefront” video game, released this spring, featured no less than 10 hidden QR codes that led users to exclusive content. Even with virtually no promotion, there were tens of thousands of scans, downloads and video views within a few days. The technology was perfectly suited to the nature of the content, not to mention the marketing effort behind. With dynamic linking capabilities, those codes can continue to produce dividends by linking to current promotions as the game maker changes them.

It’s even more fun seeing how these 2D barcodes increasingly play a role in how marketers are engaging consumers online via an offline retail environment. Think about products that have a long shelf life, and a story that changes over time. Gifts that have a seasonal value or wine that’s gradually aging.

Old wine that gets better with age, matched with the newest technology to help its story mature — now that’s a good match.

You can help the new generation of barcodes mature. Even though many people know what to do when they see a barcode, until the technology becomes native to every handset, you may want to coach customers a little: include instructions for downloading a reader and how to scan. We’ve posted some other best practices here. What great use cases are you seeing, and what best practices do those reveal?

We’d also like to hear where you think the tipping points are for mobile barcode adoption.

The latest evidence is a $5 million cash injection to one mobile barcode company. Raising $5 million in funding isn’t so startling, but what is striking are reports that the round was actually oversubscribed — a far cry from the dull tenor of investment news over the past couple of years. And also, the latest funders to throw their hats in the barcode ring include Motorola Solutions Venture Capital and Hudson Ventures, along with existing private investors. Not bad!

More than just an investment, the deal points to the growth of the market as a whole. As much of the coverage around this investment has pointed out, there was a 1,600 percent rise in barcode scanning just last year, and we may be just scratching the surface. The newest show of faith — as in millions of dollars in investment — may be the signal that more companies are looking to leverage mobile barcodes and to get in on the action.

Venture capitalists have long been a bellwether of market growth. In the case of mobile barcode technology, this may not be just another sign of the maturing of this market, but also a milestone in the recognition of evolving consumer habits. We can’t wait to see some of the incredible developments that increased investments in the bright minds of this market will bring to the way we use barcodes.

Home Depot Joins the Fray

Home Depot is one of the newest large brands to jump on the mobile barcode bandwagon.  A few weeks ago they announced a partnership with ScanBuy to include 2D barcodes in print ads, in-store and other signage.  The codes lead shoppers to more information on do-it-yourself projects including how-to videos and product demos. They can even enable shoppers to buy products online directly from their smartphone. For more information, read the Mashable article: Mobile Barcodes Come to the Home Depot.

Jet Blue Getaway’s Program

JetBlue launched a sweepstakes contest for a winter travel packets to St. Petersburg, Florida.  To promote this campaign, JetBlue prominently featured 2D barcodes in it is print ads. When scanned, the consumer can opt-in to receive more details on the promotion and enter the sweepstakes. More information can be found in this Media Post article: JetBlue Campaign Uplifts 2D Codes

Macy’s Backstage Pass Campaign

In late February, Macy’s launched a new campaign using 2D barcodes to connect consumers to video content such as fashion advice.  The codes appear everywhere from television advertising to print ads to in-store signage. In order to educate consumers on 2D barcodes and drive usage, Macy’s has also developed an educational video that explains 2D barcode and how they work.  More information on the campaigns can be found in this Media Post article: New to Macy’s Spring Lineup: QR Codes.

DC United Kicks Up the Codes

DC United kicked-off a print advertising campaign which encourages consumers to take pictures of its ads and share them on Facebook or Twitter for a chance to win team gear. The ads also feature 2D barcodes which, when scanned, take users to a special D.C. United video.  See Represent Olsen’s Army and Win for more details on the campaign.

WalkIn Facilitates Restaurant Wait Lists

This unique application of 2D barcodes came about at the SXSW show as a result of a start-up competition called StartupBus. The mobile application allows users to scan a QR code at the door to save their place on the restaurant’s waiting list. For more information, read the Mashable article: Scan a QR Code & Save Your Place on the Restaurant Wait List.

We’re excited to see so many brands embrace this technology and experiment with it in new and exciting ways. Neustar continues to play a key role in helping to facilitate interoperability among the mobile barcode ecosystem with its clearinghouse model.

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

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CTIA, Mobile Messenger, mBlox and Neustar have teamed up to host a fun, interactive scavenger hunt at the CTIA Wireless Show this week.  Here’s how it works: Stop by the Neustar booth #2921 to receive a postcard with a special message.  Use your smartphone to scan the 2D barcode or text the keyword and you will be asked question and sent to another booth to get your next question.

There will be a total of four questions and if you answer each one correctly, you’ll get a $5 Starbucks card and be entered to win an iPad at the show. Winners will be announced on Thursday, March 24^th at 11:30 am at the Neustar booth.

In addition to the scavenger hunt, Neustar will be hosting a number of discussions/events at the show including:

Tuesday, March 22nd

11:30 am – Enabling the 4G Life with Neustar

3:00 pm – The Mobile Cloud: Unlocking New Profits **Featuring the Yankee Group

4:00 pm – Networking Cocktail Reception: One location. One Vision. One Connection.

Wednesday, March 23rd

11:30 am – Connecting the Digital Life with Barcodes

3:00 pm Mobile Cloud – Connecting Next-Gen Services

For more information or to register for these events, visit: http://www.neustar.biz/about-neustar/events/resources/neustar-at-ctia-2011-connecting-your-digital-life

Neustar has created the first global 2D barcodes registry and clearinghouse to enable interoperability among all of the players in the mobile barcode ecosystem. Come visit us in booth #2921 to learn more and experience for yourself the opportunity for mobile barcodes and ways that the entire mobile ecosystem can work together to drive this technology forward.

It’s a good question given the recent buzz about augmented reality, including at Mobile World Congress in Barcelona where several application developers announced product releases and beta apps.  Industry analysts have added to the discussions as well, projecting market estimates that amount to billions of dollars over the next several years.

Augmented reality is going to impact different aspects of our lives, but when and how much it will impact mobile marketing in the near term remains to be seen. It’s still worthwhile to think through a few use cases.

In the article above, the author considered a tourism use case involving the Eiffel Tower.  With an augmented reality app, a person standing at a distance with a camera phone could capture all or part of the Eiffel Tower in the camera’s field of vision.  The image could be used to search remote databases used to identify the Tower.  (For this use case, let’s assume this app has geo-location capabilities or is otherwise smart enough to know you’re viewing the real thing as opposed to the Eiffel Tower in Las Vegas or the dozens of other replicas scattered around the world.)

All sorts of information and services could be linked with the Eiffel Tower and displayed on the phone’s screen, such as a Wikipedia link, the Eiffel Tower official website, nearby cafes, or anything else.  It could even recommend, through advertising or other means, that the tourist download the official Eiffel Tower mobile app.  It really depends on the developer’s objectives and the app’s capabilities.

With that in mind, think about the use case from the perspective of the Tower.  By that, I mean the Eiffel Tower Operating Company (or SETE).  They have a specific agenda that includes: selling tickets, selling merchandise, and reserving tables in Le Jules Verne restaurant, among others.  The organization wants to maximize those objectives, whether the tourist is standing at a distance from the Tower itself or is anywhere else on any given day.

What if the tourist is already standing inside the Tower and SETE wants to offer their mobile app for download?  The tourist could easily scan a strategically placed 2D barcode, perhaps on the ticket or receipt, and immediately receive a download link respective to his or her device profile.

What if the tourist is sitting in a New York City coffee shop reading an Eiffel Tower article the day before arriving in Paris?  The Eiffel Tower Operating Company could offer the mobile app through a 2D mobile barcode presented within the article or advertisement.  That remote tourist could then easily buy tickets and reserve a table in Le Jules Verne at that very moment.

Of course, augmented reality is a very broad topic and will be applied to much more than mobile marketing and probably in some ways that even the Google Goggles folks haven’t dreamed of.  Still, those of us concerned with mobile marketing should consider best uses of the technology and how it can be applied to achieve consumer interests and brand objectives.