CONTENT THAT CONNECTS

QR Codes and Other Mobile Engagement Tools

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Content That Connects

Industry & Market Trends

in Mobile

Mobile Barcodes

Emerging Mobile Engagement Strategies

– NFC

– Image Recognition

– Augmented Reality

IF PAST IS PROLOGUE, THE IMPACT OF THE MOBILE INTERNET WILL BE BIGGER THAN THE IMPACT OF DESKTOP INTERNET … AND PERSONAL COMPUTER … AND MINICOMPUTER … AND MAINFRAME …Morgan Stanley Mobile Internet Report

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The Impact of Mobile:

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54.9% Smartphones vs. 45.1% feature phones†

Smartphone sales account for approximately70% of new phone sales †

87% of Smartphone owners use their phones to access the internet or email*

78% of these users saying that they go online daily via mobile device*

Mobile/Connected Device Market Trends

*Sources: Pew Internet & American Life Project

†The Nielsen Company – Nielsen Wire

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Mobile/Connected Device Market Trends

With Smartphones, tablets and other connected devices, consumers have become digital omnivores*

In 2012, platform wars will also extend beyond the Smartphone screen, as tablet adoption continues to surge while driving a growing share of digital media consumption*

Today, half of the total U.S. mobile population uses mobile media** Increased WiFi availability and

mobile broadband adoption in the U.S. are helping drive connectivity

* ComScore

** Pew Research Center’s Internet & American Life Project

MOBILE ENGAGEMENT TACTICS

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Subtitle

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Strategy is the Key

Tactics themselves will never dictate the success of a marketing program

It’s how QR Codes or mobile technology is applied to solve a customer problem, meet a need, or enhance the overall customer experience

Plus, there are benefits to the marketing organization in customer engagement, and information acquired

EMart Sunny Sale

Challenge: Emart, South Korea’s largest retailer, was facing a drastic drop in sales during lunch time hours

Create unique shopping/engagement experience Emart created a shadow QR code that only became visible when

the sun was at the correct angle in the sky between midday and 1pm.

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E-Mart Sunny Sale

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Expanded from 11 to 36 locations in Seoul, S. Korea

QR Codes – Identity Crisis?

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Barcode Awareness – Continuing to Build Momentum

Usage, and adoption continue to rise but full potential has not yet been realized

Challenge is to deliver value to the customer experience; engage and reward

* Source: Scanlife 2012 Q2 Trend Report

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Mobile Barcodes

Mobile barcodes or tags encode information that allow physical objects to link to the mobile web

Utilizes Smartphones/mobile devices as the interface to decode the two-dimensional barcode/Tags

Originally 70+ types of 2D barcode or tag types; now down to a handful of serious players for marketing engagement:

Microsoft TAG SnapTagQR Code

2D Barcode and Tags – QR Codes

Initially a highly-fragmented landscape with numerous 2D barcode types QR Codes have risen to

become the most broadly used mobile barcode Open licensing Included in many barcode readers

that were previously proprietary

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Generalized QR Codes – Printed traditionally or digitally; every responder gets the same code.

Personalized QR Codes – Every code is unique and each code points to a specific barcode related to the individual

2D Barcode and Tags – QR Codes

QR stands for “Quick Response”

Invented in Japan by Denso Wave in 1994

It is a two-dimensional barcode readable by Smartphones/devices

Essentially a web address/digital information in a graphical format

Takes consumers to mobile content.

Easy to encode through onlineQR Code generators, or systems that provide basic analytics

No special printing needs

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Why Insert QR Codes In Your Marketing Campaigns?

Have a good reason to do so, what is your end goal?

Provide a solid value/payoff for the customer to engage with the barcode Be aware of the user experience How will users relate and interact

with the content Is there an offer, coupon – does the

interaction improve your brand, or engagement with the customer

Have a clear call-to-action and keep content as relevant and specific as possible

Make sure content is MOBILE OPTIMIZED

Mobile Barcode Destination Content

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Analyzing the Data

Pre-Populated Landing Pages Entice Corrections Self-cleansing data

Segment Warm and Hot leads Tailor follow up communications

Peak & Non Peak Visits Do segments respond at the

same time? Orphaned Pages

When did they abandon the offer? Test and Learn Strategies

Experiment testing with offers & incentives to different segments.

Data

Analysis

is Key

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Versioning Strategy

Within the same campaign, we can use QR Codes to track performance based on geography, media, segment, etc.

QR Code testing examples: Regional/Demographic Segments Marketing vehicle Timing Offer testing

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Custom Design Codes

Adding graphics/logos made possible through error correction and redundant information contained in the code

QR Code Considerations

Unfortunately there are no absolutes Size; recommend no smaller that ¾” x ¾”

(1” x 1” if you can afford the space) Clear area around the code to improve

odd of successful scan

Contrast; high contrast between foreground and background Darker color on lighter background – do not reverse out

Code density/error correction Keep URL as short as possible

(consider a URL shortener or redirect) Understand your environment and

what your code is exposed to

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Level L (Low)7% of codewords can be restored.

Level M (Medium)15% can be restored.

Level Q (Quartile)25% can be restored.

Level H (High)30% can be restored

CODES IN ACTIONIndustry Examples

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RR Donnelley 2010 Annual Report

Showcased QR Codes as link to enhanced content

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Best Practices: Best Buy

Best Buy is utilizing QR Codes in marketing and in store

Catalog Application: Link to Video

Sears Tool Catalog Links to product specific videos

throughout the tool catalog

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Personalized QR PURL – Catalog

Personalized QR Code resolves directly to Mobile PURL landing page

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QR Code to App Download

NEAR FIELD COMMUNICATION (NFC)

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Near Field Communication (NFC)

Proximity triggered interaction between NFC devices Uses; mobile payment, peer-to-peer

sharing, link to mobile web People with a compatible phone simply tap

(or get close to) your NFC-enabled materials to open a web page, dial a phone number, see a free message, open a Vcard, or download a mobile app.

Typical print applications require NFC tag applied via label

Variation on RFID technology

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Near Field Communication

To make the situation still more complex, NFC is a ‘chicken and egg’ technology. To succeed, NFC functionality needs to be put into the hands of sufficient

consumers to attract service providers to the technology. And, to attract a critical mass of consumers, sufficient services need to be

available to provide consumers with a reason to equip themselves to use them.

NFC is still very much in its infancy when it comes to understanding which business models hold the greatest long-term potential.

About 20 percent of phones worldwide might have NFC capabilities by 2014*

*Juniper Research

IMAGE RECOGNITION &DIGITAL WATERMARKING

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Image Recognition

Utilizes visual search to link to content

Uses; link visuals from ads to specific mobile content

Current observations: results dependent on lighting conditions, quality of camera and library of images referenced

Amazon Flow app is a recent successful, but very specific example of this technology

Digital Watermarking

Digital Watermarking used as a trigger offers another method to access online content. Imprints an invisible pattern into the image which triggers the link information.

Digimarc Discover is a good example of this approach; How it Works; at the core of Digimarc

Discover is digital watermarking technology to give Smartphones the ability to see, hear and engage with all forms of media.

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AUGMENTED REALITY

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Augmented Reality - Overview, Background and Evolution

Augmented reality (AR) is the integration of digital information with live video or the user's environment in real time.

Main types of augmented reality: Geolocation – overlaying information based on location (i.e. storefinder,

social media applications showing location of users/posts) Printed Markers – extending print beyond the page by using the printed

piece as a trigger/tracking device to overlay graphics, animation and digital information

Natural AR – based on real world object recognition

Uses; Location overlay, product preview/interaction, virtual dressing rooms, enhanced information and experience

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Augmented Reality

Current observations: Forrester Research analyst Thomas Husson also says mobile AR is not yet delivering on its promise. But "in the years to come, this will be disruptive technology that changes the way consumers interact with their environment."

Augmented Reality Example - LEGO

Lego Store – Retail Kiosk: http://www.youtube.com/watch?v=mUuVvY4c4-A

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Augmented Reality Example

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IKEA 2013 Augmented Reality Catalog

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Augmented Reality accessible

via the IKEA Catalog app

Additional product views

and alternate detail images

Interactive features

Inspirational films

How-to guides

Idea starters

Retailer Insights

“Retailers need to think of their business as a multi-channel environment that can potentially include mobile, online, and bricks and mortar stores.”

“Winning with shoppers requires a consistent experience across channels that reinforces the values you represent as a retail brand, whether it be price, service, reviews, selection, style, or other key attributes.”

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The Nielsen Company – Nielsen Wire 03-2012

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Summary

Mobile is poised to be an increasingly demanded channel

Mobile engagement tactics are tools to enhance customer experience and brand engagement

Leverage analytics and information gained to shape future communications

THANK YOU

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