Marketers often ask why QR code technology for mobile phones (and other 2D barcode tech) hasn’t made it to the mainstream in North America. There have been a few notable efforts, some of which are still ongoing, but for the most part the technology remains esoteric and unused.
There’s a very good reason for this. In North America we don’t need this technology.
Quick Response (QR) codes were used to solve a very specific problem, inputting URLs. In NA, the majority of people who use their mobile phones to do anything more than make calls have a QWERTY keypad. The main reasons this tech took off in Japan and other parts of Southeast Asia are and not in North America are:
1. Carriers there ensured that reader applications were installed on every device.
2. Most phones in those countries didn’t (and still don’t) have qwerty – or equivalent – keypads, so using 2d barcodes as a way to quickly link to a site made sense.
It’s difficult to find data on QR reader penetration outside Japan and Korea, but to be wildly generous let’s assume that in the US it’s 5%. Even if this were the case, the potential reach is far lower than it would be if a URL were used instead.
So why are marketers still intent on forcing this tech on the American public? Recent campaigns by Ford and Ralph Lauren use 2D barcodes with little regard for the implications imposed on would be users. In the case of the ford campaign, users would need to perform one of the following actions before arriving at actual content:
“Simply open your phone’s browser and download the free app at gettag.mobi or text ‘Tag’ to 4Ford. Then follow the directions to scan or snap this tag to see features come to life.”
At the end of this convoluted path is a video, so why not simply print a short URL that links directly to the video or a mobile site where users can watch multiple videos? There’s no good reason.
Given that the same functionality can be achieved with greater reach using a plain URL, use of QR codes as a replacement or supposed shortcut to web-based content adds little value to the campaign. In fact, it likely detracts from it. We don’t have barcode reader penetration in NA, but we do have QWERTY keypads which means inputting a URL is trivial.
There are other uses for 2D barcodes that make sense. In particular, expect to see 2D barcodes deployed as part of a POS redemption mechanism for mobile coupons. For more on this, check out this post on the new Starbucks iPhone app.
Dan Neumann
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Amen, the experience for QR codes it too fragmented, I hate the apps, the camera always lags about 2 seconds behind when I’m trying to center on the target. I have more faith in RFID and NFC being more popular.
The only point in using QR codes is to make the experience a little bit cool and unique but it’s a pain. There is no point in downloading a application, installing, opening, using…only to be taken to a URL. Just use Bit.ly!
only thing I would add to this is that the app can also be used for non internet based information. Text info, contacts transfer, etc. URLs are only one option. Purpose is the thing to remember. If only URLs then I’d agree.
Also re cameras and apps, from stats I’ve seen Nokia phone have not really made big inroads in the US. The apps on their phones are lightning fast at reading codes that may Smartphones with poor cameras like iPhones etc
Sony on the release of the Bond movie Qantum of Solace in Australia last year had something like 10 000 entries into a comp by simply adding a QR Code on the posters in Sydney. No advertising push was used at all to explain it etc. Flickr has some examples of the posters etc.
I really think qr have others purpose than shotcuts of url.
Yesterday i saw an example of qr in boardgames! Just imagine direct info or special bonuses , dynamic ones, once you photo the code?
As seen with many types of advertising execution, there is a time and a place for it. To say it is dead or is obsolete for the American market is hasty. Mobile phones become smarter and more attached to the tech-savvy generations that push them, and it has its niche. For teaser campaigns, the ‘9′ movie poster used it, and I personally witnessed hordes of smartphone users crowd around to await their turn to see what the message brought. The EZCodes can post to Twitter, update your calendar, download contact info, and about 9 other things which aren’t mentioned here. As you state – Starbucks began using it for payments and it has received over 400 good reviews on the iTunes App store thus far in only limited use, so we should expect to see more of it and its use to grow in and out of campaigns. As marketers, we should know that it is too soon to judge and instead know how and when and why to use it.
I would have to respectfully disagree with your dire assessment of the potential for QR code use in NA. You mention only one aspect or use for these codes. There are many other creative uses for these codes that are not mentioned. And if you think typing a url to a youtube video is easy, well you must not be using a soft keyboard on a touch screen because i can tell you from experience, it’s not easy. I do feel there needs to be more support from the mobile carriers and have some generic readers installed by default. Some companies are making inroads with this as well. The other point I would like to make is that the reason this technology took off in Japan is because their infrastructure is years ahead of ours. They have been enjoying 3g and even faster internet speeds on their mobile phones for years. Enjoying multi media off the internet. We on the other hand are just getting to 3g speeds, and a poor implementation of that to boot. Anyhow, I think you will see a much broader use of these in a variety of applications as the readers become more common place on mobile devices. My 2 cents.
I’ll have to respectfully agree with Danny’s response. QR codes still have much to offer when North America’s infrastructure catches up.
Just consider what other forms of experiences can be served when the URL includes with it additional data from the user’s phone – identifying location, context or preferences and other data – provided with consent of course.
I believe that QR codes could potentially have a great role in narrowing the gap between the physical and digital worlds, and should be considered and researched by any thorough interactive marketing strategist. That being said, I also agree with Danny’s response above that NA’s adoption is dependent on an infrastructure that supports QR codes. From what I’ve researched so far, this would entail the following:
1. QR Codes will need to become more mainstream — No one knows about QR codes and how to use them. The origination of QR codes started out because of a very specific need… commercial tracking and inventory management. The growing trend to use QR codes has to become bigger than just as a more dynamic means to deliver targeted marketing campaigns. In order for mobile users to more readily adopt QR codes and the use of them, we need to start seeing them applied in ways that are relevant to a consumer’s every day life.
2. The QR reader application would have to be native to mobile phones — If someone doesn’t already have a QR reader, they will be required to leave the marketing campaign path in order to install a QR reader for their phone either through a third-party site or via a WAP push, and at that point, you might as well say goodbye to that conversion.
3. The QR reader software readability MUST be improved to ensure reliability — Having tested out several different QR reader applications myself, it is clear that there is still some much needed improvement to balance the limitations of the mobile device to “scan” the QR code with the application’s ability to decode it correctly.
4. The consumer experience must be accounted for — In order to effectively use QR codes as part of a marketing campaign, it’s essential that the overall user experience be taken into consideration. That is, I’ve seen the retail industry hop onto the QR code bandwagon more than any other. However, the retail industry also relies on intensely graphic-rich web sites that do not render well on mobile devices. The implementation of a QR code campaign requires a mobile friendly web site.
I’d agree with the Organic post; we don’t NEED QR codes. There are lots of ways to get by without them. (custom url shorteners, image recognition a la snaptell)
The real question is: Would the cost of adopting QR technology at this point increase sales to the point of covering the costs of adoption?
The only thing that’s really unique about QR codes, in my opinion, is that they can store over 4k characters in the code itself, without the need to access the net.
I actually worked on a recent campaign where we printed a QR Code within a print ad that tied in with a microsite; the user could either access the site via mobile and scan the QR code; or access the site from a computer and scan it using their webcam. It was successful; but the same result could have been achieved using image recognition software. (It just would have cost more)
I think Jordan — you’ve touched on the ultimate question — what’s the ROI. I’d be interested in seeing the conversions that the likes of Pepsi, Colgate-Palmolive, Ford, etc. have seen from their QR campaigns. Those numbers would tell us if it’s worth the risk.
This is about so much more than QWERTY affordances. The form factor of the device should never be the sole rationale for a particular technology. If this was the case, we’d still be using punchcards instead of the mouse, touchscreens, and emerging gestural interfaces.
There are a lot of smart people and researchers looking at this through the lens of services and mobile utility. Perhaps these codes help obviate QWERTY keypad devices in the US.
PARC is but one example: http://j.mp/cMxat.
It is this kind of utility that sets brands apart…not just coupon or purchase redemption. Think digital services, not brand.
Great write-up and responses, BTW.
I must add some information about what has been happening in the 2D barcode ecosystem during the last 2 years, and especially during the last 6 months. It is true that only in Japan is really an everyday tool. However, this is not a surprise considering that Japan, besides the globalization, is always 5 years ahead in technology from the rest of the world. Mobile industry is not an exception. In 2003 was launched the first mobile phone with the 2D barcodes reader pre-installed in Japan. In 2008, Telefonica Movistar started pre-installing a reader application in their phones in Spain (+3.5 million devices today). At the beginning of 2009, the three main network operators in Spain, Telefonica, Vodafone and Orange, agreed to promote the 2D barcodes ecosystem, pre-installing a reader interoperable. These three players have more than 100 operators present in over 60 countries, and are starting to expand the technology, to Latin America for instance, where by the way, America movil is launching the 2D barcodes and pre installing too. Also, Telecom Italia is launching in Italy and sure will in Brazil, the same standard as the others, the one recommended by the GSMA and where the OMA has been working very tight too. So looks like all the main carriers in the world are very enthusiastic about 2D barcodes and had made the effort to coordinate the interoperable standard for all of them. So my first point is that, 2D barcodes will have a global opportunity thanks to the operators.
One important thing is that QR codes are only symbols as Datamatrix or Aztec or even PDF-417, all of them 2D barcodes. There are also many 2D barcodes proprietary as the EZ code mentioned. The one recommended in the interoperable system is Datamatrix.
Do we need them? People use some things they need everyday but in a bigger proportion of things that they just want. Needs or wants? 2D barcodes are functional in some cases so we may need them but brings magic that makes me want them.
So in the ecosystem we have already the accelerator, the operators that will invest and facilitate the technology. This will bring the mobile manufacturers, integrating the applications in the devices of the operators. But we need some more players to make it happen:
Producers: brands, retailers, institutions, to make a more powerful marketing campaign, to obtain a one to one customer mobile database, improve the processes…
Predators: users as individual or as a community or company.
Between these two groups will be decided. They will have the support of the mobile marketing companies, advertising agencies, software developers, etc.
We all have mobile, email, nick names for communities and even an avatar in Second Life. We live in the physical world but need network availability to the digital world. As Tomas said, 2D have a great role in narrowing the gap between the physical and digital worlds and also as Sasha said, there are much more cases how to use 2D barcodes.
With all these players pushing and communicating each other through business models, be sure that wants will become needs and 2D barcodes will be present in our lives.
Querty won’t work on mobiles – other forms of input are going to be needed to get the masses more involved.
Registering, entering form information, personalization and so on are a nightmare just now.
Not saying barcodes are an ideal but if it follows the 80/20 read/write model of Wikipedia then there could be a huge audience. So long as we can contextualize.
2D Barcodes: You’re Doing it Wrong
This post is in follow-up to an earlier post titled “RIP: Why We Don’t Need QR Code Campaigns.” Several critical points made by commenters merit further examination. These are: Many URLs are too long to be easily input, even with a QWERTY keypad. In t…
Hi All -
Thanks for all of your comments. I’ve written a follow-up piece. It is here: http://threeminds.organic.com/2009/10/2d_barcodes_youre_doing_it_wro.html
Excellent question, Elizabeth!
According to a case study by GraphicoDMG, who used i-nigma as the prime QRcode reader:
“… in the first month of the campaign the Pepsi MAX’ mobile site received 131,426 visits of which more than half were unique visitors …”
The full article may be found here http://www.graphicodmg.co.uk/CaseStudy.aspx?cid=80
*shakes head*
Oh.. Americans…
Why point your phone when you can just stop for 60 seconds and try to type a URL on a tiny keyboard, fumbling all the way…
We don’t need QR like we don’t need the metric system.
Great thread! Pongr wrote a blog post last January about 2D / QR codes as well. Having looked at this from a few angles, we don’t believe QR is a good bet for mobile marketing purposes in the U.S. or Europe. It’s great in certain regional markets, but not as a general purpose marketing tool. Our rational is mostly around the carrier, hardware and software issues that are almost always ignored by marketing people.
For some more details, see: http://bit.ly/3jYNN5
The other alternatives are likely to be the long-term winners. Although we’re clearly seeing experimentation across the board.
Thanks for the lively discussion!
Jamie
[...] Dan Neumann, “RIP: Why We Don’t Need QR Code Campaigns” [...]
QR codes
up loads, down loads, scan too much bother with not enough return. If the advertisers put some good content in there then we might return. If they just launch a web page thats not good enough. The content has to be optimised to fit our mobile screens too often its not.
If you want people to look at your content on a mobile device make sure you build a mobile site that looks good on all phones!
Now i realise that may be hard and thats why the operating systems have Apps to get round that problem,
Now all we have to do is find a way to make it easy for you to see an add, and somehow bridge easily onto mobile.
Type in a url perhaps?
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