QRUsage in Digital Marketing

CODES

What is a QR Code? 4

Usage in Digital Marketing 4Brand Marketing 4Location-Based Marketing 4Electronic Ticketing (e-Ticketing) 4

Benefits of QR Codes in Marketing Campaigns 5Analytics & Tracking 5Social Media 5

Case Studies 6ESET 6Chevrolet 7Lion Nathan Wine Group 8Dick’s Sports 8Starbucks 9MSYKNET 9

Conclusion 10

QR Codes Table Of Contents

Usage in Digital MarketingDue to its information density, QR codes hold many types of information. Used in digital marketing, codes can be embedded with URLs, notational information about advertisements, addresses, and coupon information.

Brand Marketing

By embedding them on product packaging (clothing tags, CDs, DVDs, electronics,

housewares, and product manuals) marketers can direct customers to websites

that provide more information about that product. This includes but is not lim-

ited to: extended product and warranty information, promotional coupons, prod-

uct suggestions, and bonus audio/video material.

Location-Based Marketing

The discovery experience is an added element in mobile marketing campaigns.

Placing QR codes at specific locations offers unique ways for customers to inter-

act with advertising mediums. For example: When used during a walking tour of

an art exhibit, a QR code can be included beside the art piece and contain supple-

mentary information. Customers would scan the code and receive audio snip-

pets, reading material, and promotional offers at the gift shop.

On a poster, program guide, or admittance ticket, a customer would scan a QR

code to learn more about the performers, the art form, its history, and also

receive suggestions to other performances at that venue along with links and

coupons for related merchandise. They are a useful tool for generating interest,

which encourages in the moment purchases.

Electronic Ticketing (e-Ticketing)

When a customer makes an online ticket purchase, instead of waiting to receive

a venue-issued ticket that requires printing and shipping, they can choose

instead to print their own tickets using their home printer. As another paperless

option, they could present their smartphone at the door with the QR code dis-

played, where it would be scanned in the same way as a traditional ticket.

What is a QR Code?

A QR code is a type of matrix barcode that is readable by barcode read-ing devices and by many current camera-enabled smart phones with QR code reading software. Unlike their UPC counterparts which are used extensively on product packaging, QR codes offer much greater flexibil-ity. They hold more information and can be printed much smaller than a UPC and fit unobtrusively into magazine articles and other print media.

A UPC (Universal Product Codes) hold up to 128 alpha-numeric digits.1 These data-limited bar codes are commonly used on product packaging and contain information used at the time of purchase.

Whereas...

QR codes support hold up to 7,096 numeric characters and 4,296 alpha-numeric characters along with symbols and binary information.2 They can be used on product packaging and traditional print media such as posters, magazines, and business cards. The information they hold can be used in product marketing, and at the time of purchase.

1 Source: http://www.gtin.info/2 Source: http://www.wisegeek.com/what-is-qr-code.htm

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Analytics & Tracking

Website analytics is valuable at tracking a user’s behaviour which helps with the overall improvement planning of the website. In the same tone, QR codes can also be used to track a marketing campaign’s effectiveness.

Example: A marketing campaign involved deploying print ads in subway cars, on subway platforms, and in magazines. Each of the three deployment locations used QR codes with differentiators. Each time a code was scanned it was tracked. At the end of the campaign the 3 locations were analyzed to see which proved more effective (the ones that received the most scans). This valuable informa-tion was in future marketing campaigns.

Dusit International, a luxury hotel and resort chain, has started using QR codes to track their online and offline advertising initiatives. Customers need to use a custom-built smartphone app to scan the code, which then shows them hotel offers.4

Social Media

From a social media perspective, these codes are easier to capture and distrib-ute to friendsÐURLs are not.5 Copying a long URL into a smart phone is time con-suming, especially in an age where people are constantly on the move. Capturing a QR code takes seconds. They are sometimes referred to as a “URL killer.” Shar-ing the codes is relatively simple. They can be forwarded to friends, and friends in turn forward it on to other friends.

Printed on business cards, they can contain personal contact information that gets sent directly to a recipient's smart phone contact list.

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Benefits of QR Codesin MarketingCampaigns

QR code usage in print advertising is grow-ing. It gives marketers and product manu-facturers a creative way to promote their products. When given a choice, customers preferred to scan a QR code for future ref-erence rather than manually entering a long URL into their smart phones. A case study recently revealed that between 65%

and 70% of people that captured a QR code with their mobile device used that code later on even when at their desktop computers.3

3 Source:http://thedigitalnirvana.com/2010/07/its-official-%E2%80%94-people-snap-qr-codes-even-when- computers-are-available

4 Source: http://jazarah.net/qr-codes-helping-hotels-track-advertising-effectiveness/

5 Source: http://adage.com/digitalnext/post?article_id=138154

In a recent case study, anti-virus software company ESET created a scavenger hunt for the SXSW (South By South-West) event. QR codes were left as clues in various locations. Customers could scan them and receive instructions leading them to other clues. The first 200 people to complete the scavenger hunt received copies of the anti-virus software.

Trade publisher and event producer iMedia posted the results of the marketing campaign:6

• 501 SMS interactions• 70 % of participants completed the hunt• 67 % of overall participants at any point were from Austin• 55 % of the people who completed the hunt were from Austin• 78 % of Austin participants completed• 62 % of participants from outside Austin completed• 53 % of the people that completed using QR were from Austin• 55 % completed using QR

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CaseStudies

6 Source: http://www.imediaconnection.com/content/26320.asp

ESET

• 874 people downloaded the iReveal Virtual Reality experience to their mobile devices

• Over 40 people participated in a walking trip in the city’s downtown core. It was one of the top trips with the most customer participation

• 446 people accounted for 730 check-ins at the Chevy’s Volt Recharge Lounge. This accounted for the second-highest number of check-ins. The highest number of check-ins went to SXSW’s bade pick-up area

• 75 Hot Wheels promotional cars were redeemed at the Volt Recharge Lounge

• Of the 25 Chevy vehicles on display at the event, 196 of those QR codes were scanned on the other Chevy models

• Of the 12,000 people attending the event, Chevy reported that 2% of the people scanned a QR code at some point. 8.5% of the 2% scans were done on more than one vehicle

• Together with a social media campaign, Chevy amassed 1,680,230 impressions about their brand and their products

• Chevy stated that they planned to use 30% of their media budget on digital advertising during the remainder of 2010; some of it likely going toward mobile media and social media advertising

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At another SXSW event in March 2010, Chevrolet along with geo-location service Gowalla, promoted the new Chevy Volt and Cruze models. The goal was to give the tech-savvy attendees the opportunity to participate in the marketing cam-paign rather than forcing it on them. Willing participants, upon arrival at the air-port, received a welcome message on their smart phones. Several random par-ticipants received electronic invitations for a free ride to their hotels in a Chevy vehicle. This brought attention to the brand, which they hoped would extend to the showroom floor.

QR codes were posted on the pre-production display models. Scanning them launched a micro-site detailing the general specs and features of the particular model, along with information about the innovative hybrid technologies that Chevy was promoting at the event. The results of the marketing campaign are as follows:7

7 Source: http://www.emarketer.com/blog/index.php/chevy-case-study-qr-codes-mobile-location-inspire- brand-engagement/

Chevrolet

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The Lion Nathan Wine Group, together with the QR code marketing company Cellar Key, created a marketing campaign that showcased Lion Nathan’s brand portfolio. By including a QR code on the neck tags of wine bottles, customers could learn more about the particular wine, its food pairings, tasting notes, follow URLs to online videos that showcased the company’s products.8

With so many wine brands sharing shelf space and fighting for customer atten-tion, this marketing campaign introduced a unique experience to the wine selec-tion process. Customers were encouraged to learn more about a brand they might have otherwise overlooked.

8 Source: http://mashable.com/2010/09/01/cellar-key/

Lion Nathan Wine Group

DickÕs Sports, one of the largest sporting goods retailer in the United States, used QR codes to promote their mobile site. During a Cowboys football game the code was displayed on the stadium’s enormous HDTV.9 When attendees took a picture of the billboard, they were shown a web page with exclusive offers of $10 off purchases of $50 or more.

9 Source: http://brandingbrand.com/blog/dicks-uses-qr-code-marketing-on-cowboys-stadium-jumbotron/

Dick’s Sports

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In September of 2009 Starbucks started testing a payment system using QR codes along with the Starbucks Card Mobile iPhone app. The iPhone app is linked to the customer’s credit card and functions in a similar way to the physical gift cards. When making a purchase they must enter their secure code into the iPhone app. The moment the purchase is complete it pres-ents a QR code that is scanned by the Star-bucks barista.

The app also provides a store locator, nutri-tional information for beverages, and the ability to share favourite beverages with friends.

Starbucks

MSKYNET, maker of the SPARQCode 2D optical recognition technology, released a report with statistics collected from scanned QR codes using their software.10

Although it covers a narrow field of data, it gives us some indication of what cus-tomers are using in terms of mobile hardware.

The mobile platforms with highest share were: iPhone, Android, and BlackBerry. Windows Mobile holds a relatively small share at 4%, but that can change with the recent introduction of the Windows Mobile Phone 7 platform which is intended to compete with the other popular mobile phone platforms.

10 Source: http://msky-blog.s3.amazonaws.com/QRCode-Stats/MSKYNET_QR_Code_Stats_Q12010.pdf

MSYKNET

iPhone

BlackBerry

Symbian

Android

Windows Mobile

Other

33%

29%20%

4%

3%

10%

As of January 19, 2011, Starbucks made their mobile app payment system avail-able nationwide. They have also made the app available on select BlackBerry devices as well, clearly with the goal of making this new payment system suc-cessful while promoting Starbucks as an adopter of this recent technology.

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According to MSKYNET’s statistics, Thursday saw the most code scanning activ-ity with 15.1%. The second and third highest days were Tuesday at 14.8% and Wednesday at 14.7% respectively. The day with the lowest code scanning activ-ity was Friday with 13.2%. The time of day with the most activity took place between 10AM and 2PM.

QR Codes are a leading technology used by many companies looking to expand their customer reach in new and innovative ways through digital marketing, while retaining traditional print advertising methods.

According to statistics by MSKYNET, only 4.6% of Canadians use QR Codes. This technology is gaining in popularity, and the creative ways in which these codes can be used is almost limitless.

QR code marketing firm Qre8 claims adoption is now past infancy and growing fast-thanks in part to increasing support from mobile device makers. BlackBerry now pre-installs QR code readers on all of their devices. There are several free apps available for iPhone and Android devices as well. Qre8 is confident that 75% of the mobile devices in the next 12 months will be smart phones.11

QR codes do have a downsideÐthe dependency on smart phones. However, the number of people adopting them is increasing every day.12 In the first quarter of 2010, smart phones saw the highest adoption rates year-by-year since 2006.13

Social mobile media, texting, and peoples desires to keep connected to one another while on the move is also a factor in the increased desire for smart phones. A Nielsen report predicts that by mid-2011 there will be over 150 million smart phone users.14

As a result, we project that customers more than ever will want a way to obtain information quickly, efficiently, and in a way that they can refer to at a later time. QR codes answer this need.

11 Source: http://ericaglasier.com/2010/06/29/are-people-using-qr-codes-in-canada/12 Source: http://net.educause.edu/ir/library/pdf/ELI7046.pdf13 Source: http://www.gartner.com/it/page.jsp?id=137201314 Source: http://blog.nielsen.com/nielsenwire/consumer/the-droid-is-this-the-smartphone-consumers-are-looking-

for/

Conclusion

In the first quarter of 2010, the top 5 countries with the highest scanning activity were:

• United States - 52.3%• United Kingdom - 7.5%• Germany - 5.7%• Canada - 4.6%• France - 3.2%

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15.25

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13.75

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

QR Code Scans by Day of the Week (Percentage)