QR (Quick Response) codes aren’t new. Here’s a quick look at the what, who, why and whether to consider using them for your brand.

What are QR codes?

QR codes were created in 1994 by a Toyota subsidiary to track vehicles in the production process. And now they seem to be just about everywhere — in print ads, outdoor advertising — you may even have seen them on the walls in your local bar.

Users with a camera phone equipped with the correct reader application can scan the image of the QR code (in advertising or on the brand’s packaging, for example) to display text, contact information, connect to a wireless network or open a web page in the telephone’s browser. Marketers from a variety of industries use the codes to send consumers to view videos, download apps, promote a sweepstakes and more.

But are QR codes right for your brand? Below are some considerations and research to help you with the decision.

Who’s Using Them?

A recent comScore study found that 14 million mobile users in the U.S. — 6.2% of the total mobile audience — scanned a QR code on their mobile device. While still a niche, we believe they still represent a real opportunity for CPG brands.

But currently, the industry research isn’t exactly conclusive on who’s scanning:

• A recent comScore report states that scanners are more likely to be male (60.5%), skew ages 18-34 (53.4%) and have a HH income of $100k or above (36.1%).
• According to a report by Mobio though, the gender break is 68% women, 32% men, with higher usage in the 25-44 age skew (47%).
• • Another survey shows that this number is more balanced (50%/50%) between men and women.

Our perspective is that as scanning technology adoption increases and stabilizes over the next few years, the audience that utilizes QR codes will be more easily identified.

Why do people scan?

According to a survey by MGH (an advertising agency), the motivation behind scanning codes includes:

1. To get a coupon or discount (53%)
2. Access additional information (52%)
3. Enter sweepstakes (33%)
4. Sign up to receive more information (26%)
5. Access video content (24%)
6. Make a purchase (23%)

To encourage scanning though, marketers have to raise the bar in terms of the content delivered. The experience must be compelling for people to continue to scan.

Lots of Choices

One of the most confusing aspects of the QR code marketplace for brand managers is the number of vendors and providers. A simple Google search yields thousands of websites where codes may be created, scans may be tracked, etc.

To help resolve the confusion, the following is a list of the top QR creation and analytics companies according to eMarketer:

• Microsoft
• Bee Tagg
• EZcode
• JAGTAG
• QuickMark
• Trillcode
• UpCode

An important distinction is that the above firms utilize proprietary codes–meaning a consumer must download the vendor’s app before they’re able to snap the code with their camera.

To avoid limiting themselves to a proprietary code and special vendors, many marketers use open source formats – such as QR codes, Data Matrix codes and Aztec codes.

These codes may be created with free online tools and tracked with open source analytics software like Google Analytics.

As a general rule, SBA recommends the use of open source technologies when it comes to the QR space. Ensuring that as many people can scan your code as possible is advantageous. Closed systems require consumers to download an app, install it and then snap the brand’s code. This is a lot to ask for a coupon or a piece of branded content. But each brand must make their own decision based upon their target audience, legacy technologies and the reliability of the QR analytics platform.

CPG Brands Using QR Codes

The retail and travel industries adopted the use of QR codes early on, but a number of CPG companies are using them effectively now too.

• Red Bull: QR code on an outdoor poster to promote an event
• Artisan Lettuce: On-pack QR code linking to healthy salad recipes and product information
• Reach Toothbrush: QR code campaign providing users $1 off coupon and previews of new brushes
• Kellogg’s: QR codes giving users an opportunity to experience breakfast in another part of the world via video
• Pedigree: Every mobile bar code scanned represents a bowl of Pedigree dog food that the company will donate to an animal shelter

Each of the brands above deliver compelling reasons to snap the QR code, whether it is offering a coupon in the case of Reach or a video with the Kellogg’s example.

Your Brand and QR Codes

So what’s right for your product? A few points to consider:

1. What are your brand’s goals (engagement, driving trial)?
2. What is your target audience’s smartphone usage (would they scan)?
3. Can you deliver a captivating experience after a consumer scans the code (video content, recipes, etc.)?
4. Do you have a mobile-ready website (this is optimal for the experience on a smartphone)?

Once you and your agency tackle these questions, the decision to utilize QR codes in your marketing communications is easier to make. Understanding your target’s usage and behaviors with smartphones as well as being able to deliver captivating content are vital.

But even if you answer ‘yes’ to the questions above, there is another major consideration — the future.

The Future: Image Recognition

QR codes may only be an interim technology. Companies including Google, Amazon, Kooaba and others are innovating image recognition technologies that could eventually replace the need for QR codes.

Imagine being able to take a photo of a soup can, a print ad or any object and have it connect directly to online content about that product or service. This is one application of image recognition software. In other words, consumers may eventually be able to take a photo of your print ad and be linked automatically to your homepage. Or to drive trial, consumers could take a picture of a product at the grocer and buy it immediately online. No need for any type of code. A database will recognize the image within seconds.

For now though, QR codes can be an effective way to deliver additional content to your target audience and engage them in a more unique way than conventional push advertising practices.

Sources:

1. comScore: 14 Million Americans Scanned QR Codes on their Mobile Phones in June 2011, August 2011
2. comScore: 14 Million Americans Scanned QR Codes on their Mobile Phones in June 2011, August 2011
3. Mobio: The Naked Facts: QR Barcode Scanning in Q1 – 2011, May 2011
4. MGH: MGH’s QR Code Usage and Interest Survey, February 2011