QR Codes in Magazine Advertising 2011

7/29/2019 QR Codes in Magazine Advertising 2011

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MOBILE ACTION CODESIN MAGAZINE ADVERTISING 2011INCLUDING QR CODES, MICROSOFT TAGSAND DIGITAL WATERMARKS

To understand howaction codes are be-

ing used in magazine

advertising, we surveyed

the top 100 U.S. maga-

zines.

A record 4468 mobile action codes, which we broadly dene toinclude all 2D barcodes, QR codes, Microsot Tags, and watermarks,were printed in the top 100 U.S. magazines in 2011. These codes oerpublishers and advertisers a compelling way to launch print-to-mobileand print-to-social campaigns that engage readers, build brand loyaltyand capture new business.

To understand how QR codes are being used in magazine advertising,we surveyed the top 100 U.S. magazines by circulation. Our studyincluded all the issues dated during 2011.

The study is limited to national titles readily available on newsstands.This eliminated publications that require a membership, such asAARP

By Roger Matus, Executive Vice President, Ann Carver, Analyst, andMaria Tricca, Marketing Manager, Nellymoser, Inc.

Nellymose r, Inc. | 11 Water Street , Arlington, MA 02476 | t: 1-781-645-1515 | questions @nellymose r.com

P1

Codes Increased 439% From Q1 to Q4

Q1 Q2 Q4Q3

2000

1500

1000

500

0

A

ction

Codes

Top 100 Magazines ( Jan-Dec 2011)

352

1899

Source: Nellymoser

10621155


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P2

magazine, as well as regional titles. For thepurposes o this study, we reer to this listas the Top 100 magazines.

To compile the data, Nellymoser countedand analyzed every page within the Top100 magazines. For 2011, we analyzed164,255 pages. In Q4, we ound:

47,788 total magazine pages, up rom40,300 in Q3.

21,790 total advertising pages, up rom18,407 in Q3.

We also scanned every QR Code, MicrosotTag, Spyderlynk SnapTag, BEE Tag, JagTag,Digimarc watermark and other codes withan iPhone or Android device. We activatedevery campaign, ran every video andvisited every web page.

Action Code Growth

There were 4468 codes in the top 100magazines during 2011. The year startedo with 352 codes in Q1. It grew to 1899 inQ4, which is 439% growth.

The chart below shows the month-to-month change. From January to December

From January

to December

2011, the

number of

magazine

action codes

grew a dra-

matic 617%.

All Action Codes In Magazines By Month

2011, the number o magazine actioncodes grew a dramatic 617%, rom just 88in January to 631 in December. The dipsrefect seasonality. For example, manypublications skip an issue during thesummer and the winter holiday seasons.

Advertisers drove the growth (4011 codes),as the chart on the next page illustrates.In January, there were seven advertisingcodes or each editorial code. ByDecember, the ratio was nearly 25:1.

The nature o the editorial codes alsochanged during the year. In the beginningo the year, editorial codes were dominatedby videos related to eatures in themagazine. By the end o the year, many othe editorial codes were or sweepstakesrun in the editorial section.

For example, there was a noticeable spikeo 124 editorial codes that appeared inNovember. O the 124 codes, 91 were orsweepstakes run by the marketing teamsat just three magazines: Sel (59 editorialcodes), Shape (16), and Womans Day (18).

To really understand action code adoptionin advertising, the most relevant statistic

700

650

600

550

500

450

400

350

300

250

200

150

100

50

Ac

tion

Codes

394

295

170

9488

373

278

370

507

587

681

631

Top 100 Magazines (Jan-Dec 2011) Source: Nellymoser

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


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may be the percentage o advertisingpages that include an action code. Thisstatistic is not aected by seasonality orskipped issues.

The chart below shows a steady anddramatic increase in action code adoption.From March to December, the ratio grewrom 1 out o 28 pages (3.55%) to 1 out o12 magazine ad pages (8.36%).

Another revealing trend is the quarter-to-quarter growth in action codes by theaverage, median and maximum number oaction codes per issue. In Q1, the averagewas 2.33. By Q4, it grew to 6.5 per issue.(See chart on the next page.)

The number o magazine titles containingat least one action code exceeded 90% orthe rst time in May. It rose to 96% in July

Advertising Accounts For Most Code Growth

P3

In December,

1 out of every

12 magazine

ad pages

contained a QR

code or other

action code.

Percentage of Ad Pages With A QR Or Action Code

600

550

500

450

400350

300

250

200

150

100

500

A

ction

Codes

5349

1829

1121 14

63

25

77 65

152

246

341352

264

307

482

Advertising

Editorial562 557

606

25

124

25

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Top 100 Magazines (Jan-Dec 2011) Source: Nellymoser

8

7

6

5

4

3%A

d

Pa

ges

3.55%

4.02%

5.02%5.16%

4.96%

6.48%

5.76%

7.42%

7.96%

8.36%

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: NellymoserTop 100 Magazines (March-Dec 2011)


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Overall, QR codes were the most widelyused codes, accounting or 72% o allaction codes. Microsot Tag was in secondplace with 25%.

Microsot Tag was the code o choice oreditorial and publisher use or the entireyear:

Q1: 57 o 58 editorial codes were Tag Q2: 115 o 123 editorial codes were Tag Q3: 90 o 102 editorial codes were Tag

Q4: 163 o 174 editorial codes were Tag

Digital watermarks rst entered the Top100 list in December. Nellymoser believesthis is the beginning o a trend.

and remained at that level or the rest othe year.

QR Codes and MS Tags Lead Market

Almost all o the action codes printed inthe Top 100 magazines during Q4 wereeither QR Codes or Microsot Tags (97%).At the beginning o the year, the marketwas closely split between QR codes andMicrosot Tags and they grew in parallel.However, in the middle o the year, thenumber o QR codes continued an upwardtrend, while Microsot Tags remainedwithin a relatively fat range. (See below.)

P4

Number of Action Codes Per Issue Jumped In 2011Q1 2011 Q2 2011 Q3 2011 Q4 2011

Average number ocodes per issue

2.33 4.23 4.83 6.50

Median number ocodes per issue

2 3 4 5

Greatest number o

codes in an issue

12 29 54 70

Number o action codes per issue or issues that contained at least one action code. Each weekly

issue o a weekly magazine counted as a separate issue.Almost all of

the action

codes printed

in the Top 100

magazines

during Q4 were

either QR Codes

or Microsoft

Tags (97%).

Action Code Market Share By Month

500

450

400

350

300

250

200

150

100

50

0

A

ction

Codes

Source: Nellymoser, Inc

Micros oft TagQR Code

Other

Jan Feb Mar Apr May Jun Jul Aug Sep

BEE

Digimarc

JagTag

MSFT Tag

QR

SpyderLynk

WIMO

AR

Type of Code

1

29

58

46

48

63

107

1

1

136

157

1

176

217

94

279

7

88

175

7

1

14

152

202

1

1

10

109

343

40

2

3

Oct Nov Dec

5

3

105

502

14

2

9

145

433

10

226

440

5


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How Action Codes Were Used

In contrast to last year, it is now rare or amagazine reader to be sent to a desktop-style web site ater scanning a code.Advertisers and editors are creating mobileexperiences designed to engage the readerwhile they are reading the magazine.

Most action codes were used or one or

more o the ollowing our purposes:

Branding and Demonstrations: Byar, the largest usage or action codeswas to showcase a video (54%). Thesevideos are oten created specically ormobile use. Examples include:

A behind-the-scenes look A product demonstration A how-to video An entertaining video

Data Capture and List Building (Opt-ins / Subscriptions / Sweepstakes):Action codes are eective or buildingdatabases (30%) because readers can

QR Codes and Microsoft Tags Lead Action Code UseQ4 2011 Q3 2011 Q2 2011 Q1 2011

QR Codes 72% 62% 61% 61%

Microsot Tag 25% 30% 38% 39%

SpyderLynk SnapTag 1% 4%

JagTag 1% 3%

All Others 1% 1% 1%

respond immediately and whereverthey are reading the magazine.

Sweepstakes were, by ar, the largestcontributor in this category. Whilesweeps can be run with one actioncode, there is a growing trend towardssweepstakes that span an entirepublication with multiple advertisersand editorial sections participating,each with its own code.

Smart Sweepstakes are increasingscan rates or advertisers. Ater a userscans and enters inormation, the smartsweepstakes remembers the usersentry data rom one scan to the next,enabling instant entry and reducingthe obstacles to orm submission.

Commerce (On-line Store, Brick-and-Mortar Store Locator / Coupon):

Readers can immediately scan andact on a desire to purchase. Links to acorporate e-commerce store led thecategory (19%) ollowed by in-app

P5

It is now rare

for a magazine

reader to

be sent to a

desktop-style

web site after

scanning a

code.

Mobile Engagements After The Scan

Engagement 2011 Q4 2011

Video 54% 44%

Opt-in /

Sweeps

30% 23%

Social Media 23% 16%

E-commerce 19% 19%

Store Locator 13% 11%

Coupon 11% 9%

Photo Gallery 11% 8%

Downloads 6% 5%

Recipes 5% 4%

Voting 1% 0%

NOTE: Columns total more than 100% because each action code may lead

to more than one engagement. For example, it may show a video and then

ofer to allow to share the video.

23%

Social Media

Source: Nellymoser, IncIn Top 100 Magazines 2011

54%

Video

11%Coupon

13%StoreLocator

win

30%

Opt-in/ Subscribe/Sweeps

19%

BuyOnline

4%Recipe

6%Download

11%Photo

Gallery


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P6

More than

a third of all

codes (1619)

come from

companies

in just three

industries:

beauty, home

and fashion

store locators (13%). Somestore locators used thephones built-in GPS to ndthe nearest location.

Social Media: Action codeswere also used to enableFacebook, Twitter andemail sharing. In 2011, 23%

o codes enabled readersto share a video link orproduct inormation viasocial media. (NOTE: Onlysocial sharing that was parto the mobile campaignwas included. Some videocampaigns led to a YouTubeChannel, which in turn hasa social sharing eature.These were not counted.)

Top Industries and Brands

Nearly 40% o the action codesused in advertising (1619) camerom companies in three indus-tries: beauty, home and ash-ion. We also ound in our RetailStudy that companies in theseindustries led the action codeuse in stores.In the Retail Study, we ound

that stores targeting shoppersaged rom 14 to 30 withmoderately priced merchandisewere more likely to use QRcodes. Retailers using codesincluded aerie, American Eagle,BCBG Max Azria, Express,Forever 21, Gap, Madewell,PacSun, Pottery Barn Teen andSephora. These retailers like tobe seen as being on trend.

Similarly, ashionable brandslike John Frieda, LOreal,Cuisinart, Garnier and Revlonuse QR codes. They are a way todemonstrate trendiness and anedgy way or the consumer toconnect with the brand, whilereceiving some benets.

2011

Electronics

Health

Fashion

Home

Jewlery

Source: nellymoser

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

571

268250

165136 135

715

Beauty

Home

Fashion

Automotive

Health

Food/Beverage

Jewlery

Television

Electronics

Alcohol

243203

333

Television

Alcohol

Beauty

AutoFood/

Beverage

0

400

800

300

200

700

600

500

100

Top 10 Brands

Cuisinart

JohnFrieda

L'Oral

Cuisinart

Garnier

Revlon

Delta

Bose

HeartsonFire

Samsung

TagHeuer

8279

74 7267

57

44 4341 41

1. 2. 3. 4. 5. 6. 7. 8. 9. 9.

Revlon

Source: Nellymoser, Inc.

Jo hn Fr ie da

Delta

Samsung

GarnierLOreal

50

80

90

70

60

40

30

20

10

0

Bose Heartson Fire

Tag Heuer

Top 10 Industries

Top Magazine Titles

SELF Lucky

Source: Nellymoser, Inc

141136 136

126 123 121 121 120 118113

InStyle

ESPNMagazine

People

Self

EntertainmentWeekly

Allure

Glamour

Shape

UsWeekly

Lucky

RealSimple

150

0

75

125

50

25

100

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 1 1.

112

REALSIMPLE


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Top 10 Industries

P7

Ninety-six

percent of

the Top 100

magazine

titles

contained

at least one

action code in

2011.

Financial

Health

Home

Fashion

Food/

Beverage


1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

219

145

124

75 73

57

272

Alcohol

Beauty

Beauty

Home

Fashion

Health

Jewlery

Food/Beverage

Automotive

Alcohol

Electronics

Financial

Electronics

109

85

161

0

150

200

100

50

250

300

Jewlery

Auto

Top 10 Brands

Q4 2011

Cuisinart

L'Oral

Bose

Revlon

Cuisinart

Trollbeads

Intel

Bulova

J.C.

Penney

Zappos

Samsung

36

3230

2523

2221 20 20 19

1. 2. 3. 4. 5. 6. 7. 8. 9. 9.

Revlon

Source: Nellymoser, In

Trollbeads

S a m sung

LOreal

20

35

40

30

25

15

10

5

0

Bulova

Bose

ZapposIntel J.C. Penney

In Q4, several brands madethe Top 10 list that had notmade it in previous quarters.This indicates that themarket or action codes isbroadening. New to the Top10 list are the ollowing:

Electronics companiesBose and Intel

Retailers J.C. Penny andZappos

Top 10 Magazine Titles

Ninety-six percent o the Top100 magazine titles containedat least one action code in2011. Thereore, a broadrange o readers spanning

demographic categories wereexposed to action codes in2011.

The Top 10 magazine titlesincluded 28% o all codes(1255), which emphasizes thebroad reach o codes.

Most o the codes withinthe Top 10 magazines werein womens magazine titles,which ocus on ashion,amily, and homemaking.This is probably because,as mentioned earlier, 40%o the action codes used inadvertising (1619) come romcompanies in three industries:beauty, home and ashion.They tend to advertise moreoten in these titles.

Hal o the magazine titles onthe Q4 Top 10 list were not onthe Top 10 list in Q3. Thesetitles were ESPN, People, Sel,Sports Illustrated, and Time.

Top 10 Magazine Titles

SELFREALSIMPLE


7768

6461

57

52

Self

Shape

People

InStyle

RealSimple

SportsIllustrated

ESPNMagazine

Wired

Lucky

Time

0

40

80

20

60

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Lucky

SportsIllustrated

W I R E D TIME

49 47 45 42


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were accompanied with an icon showing

a smartphone scanning the code. By Q4,that had dropped to 5%.Hardly any codes were accompanied byan SMS campaign or people who did nothave action code readers.

There was very little change in thesestatistics during the course o the year.

Action Code Page Location

More than 90% o action codes are placed

on the bottom hal o the page, thetraditional location or a call to action.The diagram to the let divides the amagazine page into quadrants and showsby percentage where the action codesappeared. Numbers that overlap quadrantsindicate that a code crossed quadrantboundaries.

Conclusion and Key Findings

During 2011, Nellymoser reached these keyconclusions based on this study:

Mobile action codes, including QRcodes and Microsot Tags, continue togrow. From January to December, thenumber o codes grew 617%.

QR codes are becoming much morecommon in magazine advertising. InDecember, more than 8% o magazine

Action Code Text

By Q4, more than two-thirds o all actioncodes (1327 or 70%) were accompanied byinormation that described what happensater the scan. This is considered by manyto be a best practice and ollows thepattern o many other calls to action.

Beyond that, there is a clear trend movingaway rom embellishments. Few codeswere customized or have an icon adjacentto it.

For example, in Q2, 48% o all action codescontained an instruction regarding howto download a code reader. That droppedto 23% in Q4. In Q2, 17% o action codes

P8

Half of the

magazine

titles on the

Q4 Top 10 list

were not on

the Top 10 list

in Q3.

How Action Codes Appear In Print, Q4

2.7%

46.1%2.1%

39.7%

0.7%7.7%

0.6%

0.5%0%

Top 100 Magazines (Q4 2011)


Source: nellymoser, Inc.

Scan to ShopGet the Free AppFrom NellymoserGo To: ScanNow.mobi

31%use color

are customized16%

5%have icon

describes destination70%

Or text SCAN to 800-555-1234

have instructions to get app23%

have choice to use SMS3%

In Top 100 Magazines (Q4 2011)

Page Location In Q4


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Copyright 2012 by Nellymoser, Inc. All Rights Reserved.

Not responsible or errors and all inormation is subject to change without notice. Nellymoser and the Nellymose r logo are

trademark s o Nellymoser, Inc. All other marks are the property o their respective owners.

About Nellymoser

Nellymoser, a mobile marketing andtechnology company, creates instant,interactive consumer engagements andrich media apps on mobile devices, such astablets and smartphones.

These engagements and apps range romcontests and product videos to interactivemultimedia engagements that can be

shared on social media (e.g., Facebook,and Twitter) and include e-commerceor instant product purchases. Many oNellymosers clients use us or respondingto action codes, such as 2D barcodes,QR codes, Microsot Tags, Digimarc

ad pages contained any type o code.This is up signicantly rom 3.6% inJanuary.

Microsot Tags remain widely used byeditors and integrated marketers atmagazines. Many o the multi-codecampaigns in a single issue, such assweepstakes, use Tag.

Almost all action code experienceshave been mobile-optimized.

Four types o campaigns dominate theuse o action codes:

Video demonstrations andbranding (e.g., a look behind thescenes)

Data capture and list building, withsweepstakes being an importantuse.

Links to e-commerce sites andstore locators or brick-and-mortarlocations.

Social media sharing with links toFacebook and Twitter.

The brands that most commonly usecodes are in the ashion, beauty and

home industries. In Q4, electronicsvendors are retailers entered the Top10 list or the rst time.

Two-thirds o action codes ollowthe best practice o describing whathappens ater the code is scanned.Other embellishments, such as the useo icons, are less common.

Nellymoser intends to update this reporton a regular basis to identiy trends.

Get notications o uture updates byollowing Nellymoser on Facebook athttp://www.acebook.com/nellymoser.

watermarks and NFC. Nellymoserscustomers include leading publishers,advertisers, retailers and consumerpackaged goods companies.

Nellymoser was ounded in 2000 and isheadquartered in Arlington, MA.

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QR Codes in Magazine Advertising 2011