Why are marketers not taking QR codes seriously?

By Rimma Kats

May 23, 2012

Taco Bell taps QR codes to drive engagement

There is a prominent place for QR codes in the mobile space, especially when it comes to communicating with consumers on a one-to-one level. However, many marketers do not seem too keen on mobile bar codes and are not incorporating them into the marketing mix. 

Nowadays, it is important for marketers to have a 360-degree marketing strategy. Instead of simply taking a QR code and plastering it on anything, companies should invest time and effort and think of new ways to engage new and existing consumers.

“We are huge advocates of making them an important element in strategic planning as it relates to marketing,” said Jane McPherson, chief marketing officer at SpyderLynk, Denver.

“Enabling real objects to serve digital content gives marketers the ability to deliver targeted content to consumers – wherever and whenever – taking into account consumers’ proximity to a product and a purchase decision,” she said.

“Most important, this technology allows marketers to convert mass marketing to direct marketing. Marketers must think strategically about the role of the mobile bar codes in their marketing initiatives.”

Ralph Lauren customized QR code

Getting it right
Nowadays, there are many companies such as Starbucks and Taco Bell who have implemented mobile bar codes into their strategies.

For example, earlier this year Starbucks let coffee lovers find their favorite roast via a campaign that incorporated mobile bar codes.

The company promoted its coffee roast such as Blonde, Medium and Dark in its in-store locations.

Ketchup bottles feature QR codes for Veterans Day promotion

Starbucks also handed out bookmark fliers to consumers that not only include a coupon, but also feature a QR code (see story).

Additionally, Taco Bell drove awareness for its new Doritos Locos Tacos by placing QR codes on its packaging (see story).

By incorporating mobile bar codes, marketers are able to not only promote new initiatives, but engage consumers in innovative ways. 

“The marketers we work with are fond of mobile bar codes and many of them are implementing them in strategic ways to unlock their full potential,” Ms. McPherson said.

“We suspect that marketers who have not had good success with them have not yet begun to think of them strategically,” she said.

It is important that marketers craft a campaign that is of interest to their target audience.

Currently, many consumers are still not educated on QR codes and are not really sure how to use them.

While awareness of mobile bar codes as a marker for interactivity is growing exponentially, assuming consumers understand how to activate it without instructions can be a mistake. Education is key, as is a prominent and accompanied by a call-to-action.

If a marketer is looking to place a QR code on a product or magazine page, then there should be a call-to-action information consumers what application is needed to scan the code – or even instructions on how to scan it.

According to Ms. McPherson, programs offering clear instructions on how to use mobile bar codes can drive participation up by 500 to 800 percent.

Measuring it all
The effectiveness of a QR campaign or offer is highly dependent on driving awareness, crafting a compelling offer, explaining to consumers how to engage and using accessible technology, per Ms. McPherson.

“Other measurement opportunities are extensive and include frequency of use, detailed segmentation analysis of participation metrics, and adoption of loyalty initiatives,” Ms. McPherson said.

“In 2011, QR codes popped up everywhere,” she said. “Whether you were flipping through a magazine at the doctor’s office or opening mail from a company you did business with, there was a decent chance it had a QR code on it.

“With a plethora of free QR code generators available online, low barriers to entry caused companies to create and print QR codes on everything.”

According to the executive, 2012 will be the year of reflection and investigation.

Companies will look back on what they did and evaluate effectiveness.

Additionally, marketers will put some critical thinking into campaign objectives moving forward.

“In the next few years, companies will become much smarter and more sophisticated in their use of mobile bar codes,” Ms. McPherson said. “Up to this point, many companies have been testing the waters on mobile bar codes by printing a QR code on marketing materials, crossing their fingers and hoping for good results. 

“We believe that companies will really start to think strategically about how to use mobile bar codes, the best places to use them, and most importantly, what the technology will do for the consumer, and them,” she said. 

“Rather than dipping their toe in the water, companies will put enough strategic thought behind a campaign to jump in and experience the power that mobile bar codes can have on their marketing campaigns.”

The right situation
According to Charles Sankowich, CEO of Friendthem, QR codes can be of some help in the right situation.

Mobile bar codes need to be implemented in a strategic plan.

Simply putting mobile bar codes on random objects will not be the best way to drive individuals to a specific destination.

“When you really think about it, it is just an easier way to enter a URL,” Mr. Sankowich said. “I do not believe QR codes from a tech standpoint, are anything game changing but do offer some positives.

“For instance, I use QR codes to create an easy way to download my app, they do create a type of cool factor that might drive a certain demographic that find this approach more interesting,” he said.

“I think we will continue to see them used in strategic plans along with just placing the codes for a low cost. However, I do believe in the next few years we will see the QR codes evolve and will create new functions within that will create a rise in popularity and relevance.”

QR codes are an easy, low cost way to bring a static ad or product to life.

If linked to an integrated mobile commerce site that supports deep linking, a QR code can be a call to action that allows a consumer to instantly convert a purchase, register for more information, or engage with the advertiser via social media.

“In 2011 almost 60 percent of Twitter and Facebook users said they scanned a QR code that year,” said Wilson Kerr, vice president of business development and sales at Unbound Commerce, Boston.

“Any marketer that sees this as useless needs to open their eyes,” he said. “Marketers are not fond of mobile bar codes because perhaps they are afraid of adding an ROI element to their marketing plan and early use cases tended to link mobile consumers to non-mobile pages, resulting in poor customer experiences.

“The addition of a QR code can transform a static, non-linked print ad into a powerful, tracked, engine for mobile or social engagement.”

Final Take
Rimma Kats is associate editor on Mobile Marketer, New York

Comments on "Why are marketers not taking QR codes seriously?"

1. Jim Morrone says:

   May 28, 2012 at 11:30am

   Here's the main problem, IMO...While creating a QR code is essentially free, it's what happens next that in many cases is not free. I'd say 75% of the QR codes I've scanned do NOT go to a mobile optimized page.
   
   And while smartphone market share has passed feature phones (51% vs 49% last I saw), it's still not reaching all mobile device users.
   
   To me the real story is why marketers are ignoring SMS. It reaches nearly every mobile phone, 75% of mobile phone users text and it's the only mobile marketing technique that instantly captures the consumers contact info.
   
   It's a no-brainer to me. But I guess it's such a low-tech, boring method, it's overlooked. Even though you are extending your brand by using it as the keyword to your campaign.

2. iacopo carreras says:

   May 24, 2012 at 5:08pm

   I do believe that call-to-action is the real value of QR codes. If QR codes are just a way to present web content, their potential is only minimally exploited. As an example, at sqrmap.com, we are creating new interactions triggered via QR codes, but calling for a user action starting from the object or offline content the QR code is attached to. I do expect new creative solutions based on QR codes to pop up in the short term.
   NFC it's still quite far away and even if it will replace QR codes, how to best exploit the offline-to-online still remains ...unless new creative call-to-action solutions show up!

3. Matthias Galica says:

   May 23, 2012 at 10:16pm

   The dream of disruptive, widespread mainstream use is underpinned by the smallest assumption noted in this article: scanning a QR code is faster/easier than inputting a URL on mobile.
   
   Why this was powerfully true in Japan then:
   - Inputting a URL into a mobile device was fairly new behavior.
   - Inputting a Kanji URL into a mobile device w 9-button keypad was comic torture.
   
   Why this is shaky/questionable in USA now:
   - Entering URLs and/or keyword mobile search via mobile key input, often QWERTY, is already mainstream behavior.
   - Even under the assumption of an ideal use case state (public already past learning curve, devices come with functionality installed) this simply no longer solves a large enough consumer behavior pain point to cross the threshold for disrupting the existing behavior en masse.
   
   So what should marketers do? Pump QR codes while they still engage those intrigued by the novelty, or for the demonstrated boost in ad recall, but always display a short URL nearby as the secondary point of entry.
   
   Then remember it's what happens next that actually determines whether your mobile campaign sucks or not. All the above just concerns the way your consumer gets there.
   
   > Matthias Galica, founder @ShareSquare and former breathless QR code evangelist.

4. Sebastian Tonkin says:

   May 23, 2012 at 6:17pm

   Does anyone know what the scan rate is for consumers making use of QR codes? I've heard anecdotally from some other marketers that the number is very low, which might be holding back the technology from wider adoption.
   
   ST -@cloudninemedia

5. Jamers Rubec says:

   May 23, 2012 at 2:25pm

   QR codes are like secret handshakes. They only matter to the people that make them.
   
   They are useless and are essentially a barrier of entry. I'd rather just put a web address and hope someone chooses to type it in. QR codes a visually offensive.

6. David Javitch says:

   May 23, 2012 at 1:19pm

   It is possible that some marketers are not taking QR Codes seriously because they don't fully understand the potential yet. While it may feel like this tech has been around for awhile, the truth is that most marketers have only tried it once, or not at all. It will take time to really grasp how QR Codes and other triggers like NFC can deliver content that is extremely relevant to the individual's needs and drives interest in a brand. ScanLife's customers like Taco Bell, Starbucks, and HP are definitely taking this seriously and have seen amazing results as it becomes part of their marketing strategy.

7. Kang Ha says:

   May 23, 2012 at 11:32am

   There's some very creative applications with QR codes that markters need to consider. That being said, there's yet to be real standardization and having scanning apps pre-load on all smartphones. The typical consumer will not know one scanning app from the next.

8. Ken Richardson says:

   May 23, 2012 at 11:03am

   QR codes are starting to become much more prominent here in Canada now. You defiantly see them on more than you used to. I think it will take some time for the major corporations to catch up with those that are on the cutting edge.

9. Marcus D. R. says:

   May 23, 2012 at 10:30am

   The problem with QR codes is that they are free.
   
   This has lead to every little print shop or mom+pop operation putting them everywhere.
   
   They have over-saturated the consumer market to the point that they become invisible. A few high-end campaigns have fought to over come this, but in general, 99% of all ad agency creatives HATE QR codes and therefore we only see little, no-budget applications of them.
   
   Also, a QR code was necessary with in the pre-smartphone days. Not so much anymore (I can type in a short URL much faster than I can launch a QR reader).
   
   Image recognition and NFC have a much brighter future than an 18 year old technology that should be put to pasture.

10. Michael Nuciforo says:

    May 23, 2012 at 7:37am

    I have seen Mobile Money Network utilise QR codes really well on their Simply Tap service in the UK. Takes you straight to a product purchase position in their app.

11. Annett Murphy says:

    May 23, 2012 at 5:36am

    I totally agree with the view that QR codes need to be considered in terms of the overall campaign objectives. At goMobi (www.gomobi.info) we view QR codes as key part of a mobile web strategy, we allow the mobile website owner to create QR codes that can be integrated into a print or online campaign. The QR code is designed to drive traffic to a specific mobile web landing page, which may have redeemable coupons or booking forms, shopping cart etc. all driving customer interaction and revenue. Annett Murphy, Head of Marketing, dotMobi (goMobi is a dotMobi product)