The uncertain future of the QR code

Roger Marquis
Mobile Posted on January 03, 2012
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Over the past 18-24 months, the acceptance and use of Quick Response (QR) codes has steadily increased among marketing and creative professionals, as well as individual and business consumers, but the question remains, what's the future of QR codes? Will the future show that QR codes were just a passing advertising fad -- here today, gone tomorrow? Or, will the future show that QR codes were a viable direct response mechanism that marketers can use to engage and interact with a target audience on a permission-based, personal level?

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As a marketing strategist, my answer to the question "what's the future of QR codes" is probably much different than how a technologist, developer, creative professional, or futurist might respond, but I believe it is justified and has merit. Ask the question to this group and they might all begin to talk about the next version of QR code technology (e.g., QR code 3.0) and what that might be like and how that might work, or they might talk about other technologies -- such as near field communication (NFC), augmented reality, digital watermarks, or image recognition -- and how technologies such as these will be the death knell for QR codes, let alone other 2D barcode types. But, if the question is asked of me, I believe the future of QR codes really lies in the response companies may give when they themselves are asked, "What are your future strategic marketing goals and objectives?" Probably not what you were expecting to hear was it? Please allow me to explain.

First, let me give you my definition of a QR code. A QR code is a tactical direct response mechanism used in marketing, advertising, and promotion which, upon scanning, enables consumers to bridge the gap between the physical and print world and the digital world and back again. By nature of the technology, QR codes provide for a relatively instantaneous interactive experience between a consumer and a product, service and, brand. The key to enabling the use of QR codes, by an advertiser or a consumer, is a smartphone installed with a QR code reader app. Please read that last line again and keep it in mind as you read the remainder of the article.

When companies begin to consider the use of QR codes for advertising, promotion, or general business purposes, the majority seem to ask the same simple question: Do we want to use QR codes or not in our next campaign? But the real question to be asked is, "As a company, do we want to advance and enhance our integrated marketing strategy, as well as the goals and objectives which go along with it, to the point that the strategy includes an investment in and commitment to a mobile channel or platform?" If the answer from one company to the next is "yes," then QR codes will have a future. If the answer from one company to the next is "no" then QR codes won't have much of a future. Because QR code technology is based on a mobile platform and the use of smartphones (see definition above), it is essential for companies to first understand, believe in, embrace, and make use of a mobile strategy, before they try to understand, believe in, embrace, and make use of QR codes on a tactical level. Think strategic before tactical -- it's that simple.

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Comments

Mark Baldwin
Mark Baldwin August 1, 2012 at 11:23 PM

QR Codes definitely have certain future. They are becoming default standard in every field. Especially in web. And it is quite easy to add QR Codes to your website using service like http://www.pageqrcode.com just copy HTML code and that's it

Trevor Schain
Trevor Schain January 4, 2012 at 8:25 PM

Roger,

This is a great article and I certainly agree with many of your points and opinions.
I don't think anyone would disagree that mobile is the future and if marketers aren't thinking about adopting that into their current and future strategies, they will be left behind.

I'm a fan of QR codes and am consistently surprised at how many companies and furthermore, what type of companies are implementing these.

Here is are some questions for you and your readers:

- SnapTags are in their very early infancy, they use company's logos for scanable recognition... when these become free and available to the masses, do you see 2D QR codes dying off? In case you don't know what I'm referring to, next time you pick up a 12 pack of Bud Light bottles, check out the case for an example.
- As a marketer for an affiliate tracking company (HasOffers.com), how do you see companies tracking QR codes and scanable codes of the future? Impression Pixels? If so, how would you track physical placements on buildings or newspapers? How would you populate Dynamic ID parameters? etc...

Thanks and I enjoyed your article!
Trevor

Bruce Braun
Bruce Braun January 3, 2012 at 8:56 PM

You make some interesting points, Roger.

There is little doubt that the majority of marketers and brands see the need for a mobile strategy and execution, as evidenced by the tremendous growth in mobile ad revenue, mobile apps, websites etc.

QR codes are not a strategy but one of many mobile tactics available to an advertiser.

The problem rests with the QR code providers. There has not been any industry-wide effort to educate the public as to what QR codes are and how they can be used. Advertisers do not see it as being their job to educate consumers on QR codes either, when codes are incorporated within an ad.

As an industry group, there is no industry-wide information published as to how many people have QR scanners on their phones, how often they use the scanners, for what purposes or how many scans are done monthly or annually. All you see are individual companies quoting percentage growth or an occasional 500K in scans for a promotion. It should be noted that the only way to generate large numbers of scans is the tactic of free give-aways or contests. Everything else, in terms of the numbers of scans is miniscule.

A simple search for QR code creation tools will render scores of "free" tools. Yes, those free tools don't really provide any analytics but to the advertiser, they respond with: So what? App and mobile website analytics do the heavy lifting when it comes to tracking and analyzing consumer actions. None of the paid QR code companies can provide anything more than voluntary opt-in consumer information such as age, gender, and location (country or perhaps zip code). Once the connection to a mobile URL is made via QR code, the data collection by the QR code provider stops. They cannot follow the consumer into an App or website. Bottom line is advertisers wonder, just what do QR codes provide other than a path to information via a scan vs. a consumer just typing in the URL into their phone browser. And most importantly, how much is that worth to the advertiser, and for what cost? How can ROI be measured when the only thing being measured is that a connection took place and nothing more?

What is the future for QR? Not good.

Ask yourself, why is it that the major US carriers have never mandated handset manufacturers imbed QR scanners in all the phones? Compare QR to how the carriers and handset manufactures have treated GPS, Bluetooth, Maps and Wifi.

Conversely, the carriers have now partnered with Google, VISA, AMEX, MC and Discover along with major merchants for NFC technology. ISIS, www.paywithisis.com/, is the NFC partnership that will make QR codes as we know them today as being irrelevant. Google calls it the frictionless mobile wallet. No need to manually scan anything. More importantly, is the capability for financial transactions with NFC.

Do the math on how much AT&T would make if they could pocket two cents for every mobile NFC based purchase in the years to come, once NCF hits critical mass. AT&T and the other carriers, and credit card companies have an astronomical financial incentive to make NFC standard on every phone they sell.