Last week, comScore released data from its comScore MobilLens service, finding that in June 2011, 14 million mobile users in the U.S, representing 6.2 percent of the total mobile audience, scanned a QR or bar code on their mobile device.
The press release continues:
“The study found that a mobile user that scanned a QR or bar code during the month was more likely to be male (60.5 percent of code scanning audience), skew toward ages 18-34 (53.4 percent) and have a household income of $100k or above (36.1 percent). The study also analyzed the source and location of QR or bar code scanning, finding that users are most likely to scan codes found in newspapers/magazines and on product packaging and do so while at home or in a store.”
comScore summarizes:
“QR codes demonstrate just one of the ways in which mobile marketing can effectively be integrated into existing media and marketing campaigns to help reach desired consumer segments,” said Mark Donovan, comScore senior vice president of mobile. “For marketers, understanding which consumer segments scan QR codes, the source and location of these scans, and the resulting information delivered, is crucial in developing and deploying campaigns that successfully utilize QR codes to further brand engagement.”
Are we close to the age of QR codes?
Let’s look at the data:
· comScore didn’t differentiate between QR and bar code. That’s a big problem. While QR codes are seen as a promotional vehicle by customers, bar codes are regarded as information devices. Many apps rely on bar codes to deliver data: Fooducate gives customers the opportunity to scan the bar code of a product and find healthier alternatives. Red Laser helps customer to find cheaper alternatives.
· The majority of scans take place inside retail/grocery stores, followed by scanning at home. Another indication that bar code scanning trumps QR code scanning.
· The study neglects to tell us how frequently users snap the codes. This post calculates that the odds of any individual holding a smart phone actually scanning your code on a given day are 1 in 244. Currently, that’s a better return than any display ads statistics I’ve seen in a while. Very likely, this will change over time when the novelty wears off.
What to do now.
QR codes are just a bridge to sophisticated image recognition. Google Goggles is fairly far along, Mobius offers an interesting product and very soon image recognition will make the use of QR codes look as ancient as Windows 95.
QR codes ask too much from customers: They have to download scanning apps and learn how to use them. Not all codes work for all apps, that leads to increasing customer frustration with this tool. Then you have to shoot the code, hold the phone steady and hope your mobile network is fast enough.
Oh, by the way, you haven’t started your work yet: Development and management of mobile barcodes. Creating content that engages the mobile customer. Are all the codes cross-platform? How much space do you have to dedicate to explain to customers what to do? What is left for your real message?
My advice: If you think about launching a QR code initiative next year, think again. By next year, image recognition will have improved dramatically and we can look at the QR as the ancient hieroglyphs they will be by 2012.
If you’re in the middle of a QR initiative, think twice where you place them. I’ve seen in-flight magazines with bar codes. What a waste. Having them placed inside leafing magazines (from page to page: Esquire, Men’s Health) might be worthwhile, people are looking for entertainment. A QR Code in the New Yorker? Not so much.
Oh, and having a placement in the subway where people don’t have any Internet connection makes really no sense. And I’m being extremely polite here.
uwehook 
There’s a lot in here that is right, and a lot that is slightly off the mark – as I see it..
~ Pardon me if I jump around a bit, you covered a lot of ground in this post.
First: Data. I love backing your argument with data. I personally don’t like comScore data, but in many places it’s all that is available.. You’re bang on with calling out the fact that bar code and QR code data is lumped together – this greatly reduces insight that can be gained.
I love how you state that “The majority of scans take place inside retail/grocery stores,” this is fabulous – this tells me that the use case is working for end users, and its marketers who need to catch up and rethink how/where they are placed. ……..to trump your subway add, I’ve seen QR codes on websites, for major brands no less. Clearly there is a learning curve 🙂
You’re reporting lot’s of scans (QR, barcode, whatever..) where customers can physically interact with products. There is a lot of empirical insight to be gained with this observation.
When I read that, I can’t help but think that scans can heighten a brand experience, the shopping experience, and are strengthening consumer engagement – but only in certain situations.
Now, the “Elephant in the room” and the main reason why I disagree with your take that “QR codes are just a bridge to sophisticated image recognition” at least in terms of marketing and advertising – is tracking.
Yes, Google Goggles (or Mobius, or whatever comes next) does a better job of image based recognition. Goggles does awesome OCR today – so why not simply scan the URL instead of the strange QR?
The answer is tracking.
In the last 20 years, the biggest shift in marketing is that digital marketing is absolutely, positively quantitative. Anything that occurs online, is report-able. Reports, and in turn ROI can be calculated down to the click, down to the penny. This level of absolute granularity has never before been possible.
QR codes, today, are the closest we’re going to get to bringing finite reporting to physical marketing.
Think of the Jetblue add you picture above….
Scanning it could simply take you to “www.jetblue.com” (hopefully, it doesn’t) ……or using Google Goggles to scan the URL could accomplish the same thing.
Scanning the QR, on the other hand, might generate the following URL (using Google Analytics conventions, in this example);
http://www.jetblue.com/?utm_medium=subway.add&utm_source=Aldgate_Station
Bingo. …….you’ll never see that URL printed in a subway. I can already see station specific adds, and the analysis that could be done on the resulting data. Yes, today the sample will be small – but you just got promoted. Your boss has never seen anything like this level of specific visibility into the effectiveness of her spend.
To finish the thought, I don’t think that you are going to see QR codes going away. If you’re planning your initiatives for 2012 – QR codes should still be considered. IMHO.
Are they perfect? far from, but they will allow you to bridge your physical and digital campaigns in a way never before thought possible ………..now, will there be enough data to provide an accurate sample to generate usable insights?
Cheers, thanks for the post.
D.
Thanks for your input. Appreciate your thoughtful response.
I approach this topic mainly from the POV of the customer. I just don’t see high adoption rates for anyone outside of the geek crowd. Goggles is just one step, QR requires too many additional steps. I’m not saying QR codes will go away. Not a big believer in “A is dead” statements. I just don’t see a lot of growth ahead.