QR Codes: Marketing Gone Mad or Evil Genius?

We’ve all come across them in our day-to-day lives, blocks of black and white that appear to be a bar code but on closer inspection are something altogether different. QR codes, or Quick Response codes, were first introduced in the mid-1990s as a way of tracking parts in the automotive industry; the Japanese adopted the technology at the turn of the millennium and quickly developed it into a marketing concept targeted at consumers and their smart phones.  The question is how many people actually know what they are and better still know how to use them?

If there is a problem, it does not lie with the codes being inaccessible to the public, as their omnipresence is clear to most. It seems the obstacle to their success is in educating the consumer on what to do when they come across one.  A study conducted by Archival, a youth marketing agency in America, found only 21.5% of students asked were able to successfully scan a QR code when presented with one. There was a multitude of reasons for why the 78.5% failed; some did not know what a QR code was, some thought taking a photograph of the code would suffice, some were hesitant in downloading a third party application onto their phone and the rest gave up either because it took too long or were unsuccessful in scanning the code once the app had downloaded.

Windows Phone 7.5 has recognised that some people may be hesitant about downloading a third party application and have tackled the problem by building the function of scanning the QR code directly into their software. The software allows the consumer to scan a QR code, Microsoft Tag barcode or Near Field Communication touch point with a single application. The idea is appealing to media and marketing companies as they are given the choice of technology form, with Liz Schimel, EVP/Chief Digital Officer of Meredith citing “Microsoft Tag gives us the creative freedom to match the right recognition technology to the appropriate mobile experience, and erases customer confusion about which app is needed to launch that experience. However, in an article published by The Guardian, using statistics compiled by Kantar World Panel, it seems that Windows Phone is still struggling to hold a substantial portion of the market.  Windows held around 2% of the market share in January 2012 and has predicted growth of up to 8% in the latter part of the year with the launch of two new models. So, the QR code may be more accessible to the Windows Phone users but this does not help its plight in conquering the mass market. In addition, in the introduction of this technology, did Microsoft actually have QR codes in mind or was it a mere afterthought when marketing their own Microsoft Tag?

An issue that may come as a surprise to some is that not everyone owns a smart phone. This could be due to lack of disposable income, sheer bemusement at the choice available or simple indifference at the thought of owning one. Kantar World Panel concluded that only 53.1% of the UK population own a smart phone making QR codes only accessible to just over half the population. However, the agency did observe that in the 12 weeks ending January 2012 71.4% of all mobile phone sales were that of a smart phone so it may well be that QR codes will gain momentum in the future once smart phones are a household staple. Archival found that out of all students asked 81.1% did own a smart phone leading some to conclude that certain demographics may be more inclined to buy a smart phone than others. Although it was found by Kantar World Panel that over 20 million mobile owners are over 50 years of age and more than one in two phones bought by the over 50s in the past 12 weeks were smart phones. So QR codes are only accessible to just over half the population at the moment.

In order for the QR code to work they require the consumer to hold their phone steady over the code for a minimum of a few seconds.  Add to this the fact that most codes only direct the consumer to the landing page it certainly seems to be much quicker to simply type the URL into the phone’s Internet browser in the first place. Granted, it may increase traffic to a website but I can’t imagine the percentage of people who take the time to navigate past the home page once the code is scanned will be staggeringly high. What is the point of drawing consumers to  the homepage if there is nothing  to entice them to stick around and absorb the desired information? Reverting back to the Archival study, when asked if they would scan a QR code in the future 58.1% of students said it would be very unlikely and only 3.9% said it would be very likely. However, the appearance of the code itself could be its saviour and render the destination unimportant  with CNN Money commenting on “23 of the coolest QR codes”.  The illustration of the code alone may be sufficient in promoting the brand and making it memorable to the consumer.

Another requirement is that the code needs to be large enough and relatively stationary for the scanner to recognise it, thus rendering the apparent benefit of it reaching the mass public by being placed anywhere and everywhere a moot point.  There are many examples of codes that do not take this into consideration, take aerial advertising for example. A plane pulling a banner displaying a QR code at a speed on average of 125mph would be incredibly difficult to scan due to the speed and distance from the consumer.  And for those who do not value their lives, there’s always leaning precariously over the train tracks in an Underground tube station to capture the QR code plastered on the other side. Perhaps the basic requirements for the code to work are being ignored in favour of sensationalism and bravado or perhaps it’s just pure ignorance to the practicalities for the likely user.

It may well be that the critics amongst us are too quick to blame the execution of the technology rather than the technology itself, for the concept is inspired to a degree. As discussed above many companies simply use the QR code to direct consumers to their landing page which, as found in the Archival study, may result in the consumer being put off from scanning codes in the future.

There are some companies that are experimenting with more innovative concepts behind their codes, such as a Korean supermarket that uses ‘shadow codes’ to promote discounts in their slowest trading hour of the day, 12pm until 1pm. The technology works by the QR code only becoming visible when hit at a specific angle with sunlight. The supermarket demonstrated that QR codes can be successful as the store witnessed a 25% rise on lunchtime sales, however this concept may not enjoy as much success in countries with unforgiving climates, for if it was miserable weather the discounts may not see the light of day, excuse the pun.

Both the Independent and Telegraph have recognised that Guinness are investigating the effectiveness of QR code campaigns with the introduction of their new pint glass that, when filled specifically with Guinness, a QR code is revealed where the consumer is able to access discount coupons and update their “Guinness pint drinking status” on Facebook. The appeal of participating for the discount coupons is apparent, however I am sceptical to think that, after the first or second status update, many consumers will be in any position to coherently describe their state to their Facebook audience, or perhaps this is the appeal?

Google experimented with incorporating QR codes into their security settings for secure login at public computers. The system requires the user to have a second secure device to hand, a smart phone, which captures the QR code on screen and provides a security code to be inputted into the computer.  How successful the experiment was remains to be seen as the system has not yet left the research stage. However, this does illustrate that the codes may be used in arenas other than marketing in the future.

Following on from how some QR codes have been used in more innovative formats, arguably some have innovated a little too much. Monmouth, a historic market town in South Wales, has joined forces with Wikipedia to create ‘Monmouthpedia’ The town has QR codes situated in locations of historic interest and when consumers scan the code they are transported to Wikipedia and an informative page relating to the specific history of that location. The argument may be that, even though the town is actively trying to promote its history in times where technology is king, they could be diminishing its charm by presenting the information in a modern format. Another example is QR codes being printed on condoms in America. It is a scheme run by Seattle based Planned Parenthood  to promote safe sex by encouraging consumers to record the location of their encounters by scanning the code and inputting information into a website. The campaign is targeted at teenagers who are already comfortable with social media but surely being comfortable with social media does not directly translate into being comfortable with telling the world (and your parents) about your intimate life.

With the introduction of QR codes we are entering an era of complete advertisement saturation where consumers are constantly bombarded with campaigns with which they are encouraged to interact. The case may be that consumers will feel violated by this bombardment and will speak out, as in the case of Twitter. Twitter, albeit popular in general, realised recently it needed to tread carefully when broaching the idea of advertising on its site with the recent scandal surrounding Mars and their exploitation of the influence of celebrity tweeters. The general public retaliated to the blatant product plugs by complaining “I’m not here to be advertised at”, illustrating how advertisement may not be entirely welcome in all modern forums, let alone out in the everyday real world. Thus, in order for QR codes to be welcomed as part of a marketing strategy, it seems that they need to provide something beneficial for the consumer other than a trip to the company homepage. In today’s society, with most consumers having a digital voice and not being afraid to use it, the marketers cannot just lead the consumer to the landing page and get away with it; they have to provide something in return, as in the case of Guinness and the Korean supermarket. But this does beg the question, do the codes carry enough weight with the offers they provide to qualify them as a reputable marketing concept or should they stick to what they were initially designed for? I am sceptical for their future, as there are many flaws that need to be addressed for QR codes to work as an effective marketing tool that delivers results unobtainable via another approach.

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