CONTENT THAT CONNECTS QR Codes and Other Mobile Engagement Tools Content That Connects Industry & Market Trends in Mobile Mobile Barcodes Emerging Mobile Engagement Strategies – NFC – Image Recognition – Augmented Reality 1 The Impact of Mobile: 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 2 Mobile/Connected Device Market Trends 54.9% Smartphones vs. 45.1% feature phones† Smartphone sales account for approximately 70% 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* *Sources: Pew Internet & American Life Project †The Nielsen Company – Nielsen Wire 3 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 4 MOBILE ENGAGEMENT TACTICS Subtitle 5 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 6 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. 7 E-Mart Sunny Sale Expanded from 11 to 36 locations in Seoul, S. Korea 8 QR Codes – Identity Crisis? 9 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 10 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 twodimensional barcode/Tags Originally 70+ types of 2D barcode or tag types; now down to a handful of serious players for marketing engagement: Microsoft TAG QR Code SnapTag 11 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 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 12 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 online QR Code generators, or systems that provide basic analytics No special printing needs 13 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 14 Mobile Barcode Destination Content 15 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 16 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 17 Custom Design Codes Adding graphics/logos made possible through error correction and redundant information contained in the code 18 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 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 19 CODES IN ACTION Industry Examples 20 RR Donnelley 2010 Annual Report Showcased QR Codes as link to enhanced content 21 Best Practices: Best Buy Best Buy is utilizing QR Codes in marketing and in store 22 Catalog Application: Link to Video Sears Tool Catalog Links to product specific videos throughout the tool catalog 23 Personalized QR PURL – Catalog Personalized QR Code resolves directly to Mobile PURL landing page 24 QR Code to App Download 25 NEAR FIELD COMMUNICATION (NFC) 26 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 27 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 28 IMAGE RECOGNITION & DIGITAL WATERMARKING 29 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 30 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. 31 AUGMENTED REALITY 32 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 33 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." 34 Augmented Reality Example - LEGO Lego Store – Retail Kiosk: http://www.youtube.com/watch?v=mUuVvY4c4-A 35 Augmented Reality Example 36 IKEA 2013 Augmented Reality Catalog Augmented Reality accessible via the IKEA Catalog app Additional product views and alternate detail images Interactive features Inspirational films How-to guides Idea starters 37 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.” The Nielsen Company – Nielsen Wire 03-2012 38 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 39 THANK YOU 40