NeoMedia Technologies, Inc (NEOM)

[codes4real]

Mobile Next Big Thing 10/7/10

CTIA Panelists Say “QR Codes are Not Hot Today,” Yet Tops Brands are Quickly Bringing Them Mainstream Status

http://mobilenextbigthing.biz/2010/10/07/ctia-panelists-say-%E2%80%9Cqr-codes-are-not-hot-today%E2%80%9D-yet-tops-brands-are-quickly-bringing-them-mainstream-status/

CTIA panelists have said that “QR codes are not hot today.” Rimma Kats from Mobile Marketer writes in her article: “Although fairly popular with consumers, the panelists said that QR codes do not scale very well. Then, Mr. Kaplan says, “No human knows the difference between ScanLife and every other [2D bar code reader application].” “It’s just a funny little thing – users download the wrong app reader, it doesn’t work. “Regardless of what the code looks like, if the reader is incompatible, it just won’t work,” he said. “QR codes are not hot today – unless you’re in Japan.”

These statements show we must do a better job of educating the market on the true value of barcodes and continue to share the skyrocketing use by top brands of this powerful new medium. We need to help these panelists move forward from yesterday to tomorrow where customization, flexibility, control and dynamic interactivity are the name of the game and barcodes are a key medium to accomplish that. In addition to education, we must address the current fragmentation of the mobile barcode ecosystem in the U.S. as it is a barrier to the adoption of mobile 2D barcodes.

This is precisely the reason that Neustar is working with a number of brands, retailers, barcode campaign management providers, mobile operators, agencies and technology enablers to develop a trusted neutral barcode interactive mobile exchange: 1) to ensure that when consumers scan a code it just works, regardless of the code format or the reader application, and 2) that when advertisers launch a campaign – it reaches everyone. Interoperability, security, confidence and value added capabilities are crucial for barcodes to achieve true scale, and this is exactly what Neustar is committed to working with the marketplace to provide.

Despite the fact that the ecosystem is young and fragmented, I would argue that barcodes are, in fact, on the fast path to achieve mainstream status. Many major brands have launched campaigns, including Calvin Klein, The Gap, Kellogg’s, Ford, Best Buy, Nine West, Toys R Us, Fox, Verizon, The Weather Channel, and the list goes on and on with many new campaigns being launched every day. Yes, the market is just starting. It’s similar to the Short Code market place when it began to take off. Whoever guessed we’d be buying pizza? Making wine recommendations? Voting for contestants on TV? Test driving cars? Selling houses – all through Short Codes? Barcodes can offer a more dynamic, more contextually relevant and more engaging experience using the mobile web and apps. The space will continue to get hotter as more meta data and value added services are tied to these barcodes, including m-payments. All technologies have an adoption curve, and 2D barcodes are no exception to that.

Many bloggers have commented on the short sightedness of the panelists’ comments. Much of this is due to lack of understanding and awareness of this powerful new direct response mobile medium. Yes, there are already open code formats out there, like QR and DataMatrix that support basic interoperability across readers which support those open standards. That is fantastic as it seeds the market with some level of commonality and compatibility. It doesn’t solve all the issues and it doesn’t deliver on these richer, value added applications, with enhanced targeting, security or flexibility, but it’s a great demonstration of the early power of these codes.

Personally, I don’t believe people will recognize that different codes require different scanners. What I do believe is that we need to make the technology silent and the value loud and great. We need to focus less on communicating “to” consumers and more on interacting “with” consumers. Neustar is working to provide a similar framework, so that different applications and symbologies can work together creating a seamless experience for the user. Our role as a neutral third-party provider of managed services can link fragmented single point solutions and truly bring bar codes to mass consumer adoption. Proprietary barcode solutions will continue to exist, they play and important role in track and trace, ticketing, specific supply chain and other enterprise uses. But where open standards can be used for general consumer use, we should focus on adding as much value, innovation, openness and control as possible.