There have been multiple discussions on 2D barcode opportunities from a retailer, agency, publisher, brand/advertiser and consumer perspective. But what about their impact on mobile operators?
In order for a successful mobile barcode marketplace to exist, three things are absolutely essential: true interoperability, which allows for massive reach and scale; compelling content customized for mobile; and a simple and competitive way for brands, mobile network operators and infrastructure players to realize value from this medium.
We feel reach and scale are the fundamental aspects required for mobile barcodes to become an effective marketing vehicle, and that mobile network operators could play a crucial role in proliferating the use of barcodes among their subscribers.
We also feel it is important for consumers to have a consistent and seamless experience – so when they click on a barcode – it just works. This not only reduces calls into customer service for the mobile operator, but creates another positive experience for the consumer with his or her mobile device.
So, we’ve established that 1) we need barcode scanners/readers deployed; 2) we need lots of campaigns being launched which any scanner can read and any mobile operator or third party can add value to; and 3) we need consumers adopting.
Right now is the perfect time for mobile network operators to get involved because many handset manufacturers and operating systems, such as Blackberry and Droid are starting to include 2D barcode scanners with their handsets. The challenge is that these built-in barcode scanners mainly work today for direct codes where the http link is embedded in the 2D code. This is a more limiting experience, it isn’t as secure, and doesn’t allow for value added services to easily be incorporated or for real time targeting to take place. The mobile operators could be in a position to offer and derive more value from this advertising method.
Mobile network operators are at the early stages of establishing their strategies in support of this new medium. This technology is being trialed in many different ways around the world.
Many mobile network operators in the U.S. are already testing this technology, including Verizon and AT&T who are using barcodes in their own advertising. But even the mobile operator requires interoperability for their own campaigns to work, since they are not only addressing their own subscribers, but those of their competitors with their advertisements.
We’ve also witnessed the widespread success of this technology in Japan where NTT-DoCoMo has led the way to massive consumer adoption. The issue in Japan right now is that mobile operators are completely limited in their ability to add and derive more value from 2D codes based on the limited “direct” approach these mobile operators took by only supporting “direct” 2D codes.
France deployed a different model, allowing the use of “indirect or managed codes” where the http string is not resident in the code itself, but again, French operators used a more limited code structure and one based on where the technology was 3-5 years ago which does not reflect the power 2D codes can offer today. This approach isn’t as scalable, doesn’t offer as much flexibility, control, or value to brands and advertisers. When mobile operators limit advertiser control and flexibility, they limit the power of the medium and thus its reach and potential.
In addition, Scanbuy announced a partnership with Movistar, Vodafone and Orange in which they are preloading the company’s ScanLife barcode scanner onto mobile phones and allowing subscribers from any of the three operators to access the same codes. While this provides a common platform, it likely will not provide reach, brand flexibility or control for the medium to have maximum impact. Some ad agencies and mobile application providers see this approach as competitive to their relationships with their advertising customers.
Barcode programs give mobile operators the ability to generate new revenue streams by leveraging their existing assets to:
- Provide advertising campaign management services
- Provide information services to advertisers, such as anonymous user metadata and location
- Sell their own products and services (content, ringtones, music) via barcodes
- Expand their reach by running campaigns that sell to subscribers on other networks
Interoperability in this fragmented market will ultimately provide consumers, brands, and advertisers with a consistent interface, a good user experience, and confidence that the codes they are employing are safe and functional. Mobile operators need this as much as brands and advertisers, and they should be flexible and open as to how this technology and mobile ad medium needs to work for the brand and advertisers.
Mobile network operators can play an important role in making barcodes a success. The earlier they adopt an open philosophy toward interoperability, the faster they will deliver increased customer satisfaction and maximize this opportunity to drive increased value and revenue for all.
Peter Langlois
Jeff Neuman
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