Thursday, August 30, 2012

QR Codes- Why, Why, Why?

Although the printing industry (or perhaps slightly more accurately, its consultants and journalists) seems to have latched onto QR codes in a pretty dramatic way, parallels can be drawn to the initial hype of VDP PURLs (Personalized URLs) that took place in the early 2000s. If you pick piece from a printing trade journal written seven or so years ago about VDP and PURLs, you could replace the acronym “PURL” with “QR Code”, and the piece would likely still have the same meaning; tell the same story.

In overview, the goal of QR codes is to enhance the user’s (i.e., reader or consumer) seemingly dull print piece with access to new, rich media experiences that complement the print piece. The flip side is the notion that the print piece is driving customers to the rich media experience waiting for them to view, to help “close the deal”. These are both worthy goals, but have encountered some challenges along the road to adoption.

For printers who have implemented VDP, QR Codes are technically just like implementing a PURL (Personal Response URL) on a printed piece—the benefit is that the recipient doesn’t have to type it in. This should increase the likelihood that the prospect will engage and see the additional content. That additional content to be provided via the QR Code’s link is often a mobile website these days, but can take other forms, like playing a video or showing a map. Like PURLS and other VDP applications, QR Codes can be “one to many”, where the same QR Code could be scanned by thousands of prospects, and they are all taken to the same unique content, or they can be 1:1, where each user gets their own personalized QR code, that takes them to some content that is personalized just for them. Printing QR codes is easy, and can technically be done by any Print Service Provider, using inexpensive and even free software.

One of today’s QR Code applications, readily seen, is on signs and graphics. The consumer at the point of purchase, or in the aisle of a retail store, is enticed by offer text and graphics on a printed piece; or the merchant wants to make a special offer on a particular product or add-on item.

QR Codes have appeared in many different shapes and sizes of printed products in addition to signage and display graphics. These include magazines and newspapers, brochures and datasheets, and even stationery including business cards. The results are mixed because of some obvious limitations of QR Codes.

The biggest obstacle is software that can read the code, which is relatively cumbersome to obtain today. This limits the audience for the code to tech-savvy consumers. While at this writing some 88% of smartphones have cameras, apparently only about 13% have software installed to allow them to read QR Codes. This special reader software must be installed on a smart phone to scan the code, and it is not included with Google’s Android smartphone software nor on the Apple iPhone and iPad devices. Until Apple and Google include native QR Code applications that automatically work with smartphones built-in cameras, QR codes will remain a curiosity that will only be used by technical and “bleeding-edge” users.

Another problem with QR codes is their size and appearance on the printed piece. To make them easier to scan, they are general fairly large on the printed piece. Making them bigger also makes them obvious to the user, because it’s a double edge sword—they are seen, but they are ugly (a bunch of square dots inside a larger square), as well as meaningless and unfamiliar to most consumers. All while taking up print “real estate”.

So although the QR Code is being touted by consultants and pundits in the printing industry, it has not achieved enough traction or “ubiquity” to justify the amount of attention it has received. Does it make print complement mobile? It technically can, but today the consumer has to be quite motivated (presumably by an enormously valuable offer) to act. While it could be said that this may be the problem, not the technology itself—i.e., the creativity and motivation of advertisers to actually use this new mechanism in campaigns— it’s kind of a chicken and egg thing, and if advertisers really saw the value in doing this versus alternatives, perhaps we would all be scanning QR codes multiple times a day.

There are other ways to achieve the same results that QR Codes are promising. A company called DigiMarc, based in Beaverton, Oregon (www.digimarc.com) has been creating what they call Digital Watermarks for many years. Their software accomplishes the same end goal as QR Codes, but without the visible barcode-style manifestation. The August 2012 edition of Seventeen Magazine makes extensive use of the technology. Similar to QR Codes, the company’s solution requires reader software to be installed on the consumer’s smartphone to activate the rich media experience (in this case, software that is proprietary to DigiMarc), leaving that hurdle for the consumer to overcome. Seventeen Magazine’s young readership may be a good test, because it “seems” likely they would engage and want to see rich media associated with the “fun” content in the printed magazine. We will stay tuned and look forward to seeing the results.

Image recognition technology is likely to become much more powerful in smartphones as their processor speeds and memory capacity increases. This will allow the phones to recognize images, and retrieve offers based on the actual image itself, without a code. Google has been working on such technologies for several years, and is likely to make this available as an adjunct to their Ad Words offerings in the future.

Voice Recognition software in phones is only in its infancy now with technologies like Apple’s Siri, but will very likely be used for advertising applications. Instead of having to scan a poster, for example, you could simply speak particular text from the poster (i.e., keywords) to Siri, and she would retrieve an offer for you on your IOS-based smartphone. Apple is making gigantic investments in mobile advertising technology, so we can expect this to happen sooner rather than later.

This is an excerpt from the paper entitled, "Does Print Complement Mobile Computing", by Chuck Gehman and David Uyytendaele, published in the TAGA 2012 Proceedings.

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