The uncertain future of the QR code

Roger Marquis
Mobile Posted on January 03, 2012

In the research that I have conducted, where I have analyzed literally hundreds of QR code-based campaigns, a major mistake that advertisers seem to make is the belief that deploying a QR code in an advertisement is a strategy in and of itself. In reality, this is the furthest from the truth, because a QR code is only one tactical element in an advertisement along with many others. What's often missing from an advertiser's way of thinking about QR codes is that in order for them to be used in a proper and effective manner, it takes -- first and foremost -- an investment and commitment by the company in a mobile channel or platform. Actually, it's probably due to this "strategy" (i.e., QR codes before mobile channel or platform; tactic before strategy) that causes a campaign to fail miserably and, as a result, the thought to use QR codes in the future is sidelined or shelved indefinitely. This might be why, from one advertiser to the next, we see them use QR codes only once and never again. If it were the other way around, where companies consider the mobile channel or platform first and then QR codes (i.e., strategy before tactic) then, I believe, campaigns would be far more successful and effective, and QR codes would be used by companies on a regular or full-time basis.

To view the future of QR codes in this manner (i.e., strategic marketing goals and objectives versus pure technology) hopefully sheds light on what it takes for a company to develop and deploy an effective, value-driven, consumer-oriented, QR code-based advertisement or campaign. It all begins with the mobile channel or platform and then building from that as a foundation. Next, it becomes a matter of understanding, as well as requiring, the development of mobile-optimized content. When I mention mobile-optimized content, I am referring to it being optimized for use on the mobile web, as well as optimized for the type of mobile device that may be used, either by operating system or brand of device. After that, it's a matter of thinking through the use of QR codes in an advertisement, from end to end and from the consumer's perspective, making certain that the mobile experience (i.e., the scan of the code itself, as well as the viewing of the scan resolve content) is not only flawless, but also steeped in the delivery of value, meaning, benefit, and relevance. Thinking in these terms will undoubtedly put to rest the common thought and practice of reusing desktop content as code scan resolve content, which can be analogized as trying to fit a round peg in a square hole. It may also get marketers to realize that from a response rate or return on investment perspective, a failed QR code-based advertisement or campaign has less to do with the placement of a QR code itself and more to do with the company's overall mobile strategy, which may or may not be fully in place.

To know that mobile and the use of smartphones is growing by leaps and bounds, and that a high number of professional marketers view the mobile phone as the epicenter of an integrated, multichannel, permission-based, one-to-one marketing strategy, companies will continue to realize that it's not a matter of if, but when, they will add and phase mobile into their existing marketing strategy. And, when this happens, the future of QR codes will look as bright as ever.

Roger Marquis is the founder 2D Barcode Strategy.

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Comments

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.