Content That Connects

1. Content That Connects QR Codes and Other Mobile Engagement Tools

2. Content That Connects • Industry & Market Trends in Mobile • Mobile Barcodes • Emerging Mobile Engagement Strategies • NFC • Image Recognition • Augmented Reality

3. The Impact of Mobile: If past is prologue, the impact of the mobile Internet will be bigger than the impact of desktop Internet … and personal computer … and minicomputer … and mainframe … Morgan Stanley Mobile Internet Report

4. Mobile/Connected Device Market Trends • 54.9% Smartphones vs. 45.1% feature phones† • Smartphone sales account for approximately70% of new phone sales † • 87% of Smartphone owners use their phones to access the internet or email* • 78% of these users saying that they go online daily via mobile device* *Sources: Pew Internet & American Life Project †The Nielsen Company – Nielsen Wire

5. Mobile/Connected Device Market Trends • With Smartphones, tablets and other connected devices, consumers have become digital omnivores* • In 2012, platform wars will also extend beyond the Smartphone screen, as tablet adoption continues to surge while driving a growing share of digital media consumption* • Today, half of the total U.S. mobile population uses mobile media** • Increased WiFi availability and mobile broadband adoption in the U.S. are helping drive connectivity * ComScore ** Pew Research Center’s Internet & American Life Project

6. Mobile Engagement Tactics Subtitle

7. Strategy is the Key • Tactics themselves will never dictate the success of a marketing program • It’s how QR Codes or mobile technology is applied to solve a customer problem, meet a need, or enhance the overall customer experience • Plus, there are benefits to the marketing organization in customer engagement, and information acquired

8. EMart Sunny Sale • Challenge: Emart, South Korea’s largest retailer, was facing a drastic drop in sales during lunch time hours • Create unique shopping/engagement experience • Emart created a shadow QR code that only became visible when the sun was at the correct angle in the sky between midday and 1pm.

9. E-Mart Sunny Sale Expanded from 11 to 36 locations in Seoul, S. Korea

10. QR Codes – Identity Crisis?

11. Barcode Awareness – Continuing to Build Momentum • Usage, and adoption continue to rise but full potential has not yet been realized • Challenge is to deliver value to the customer experience; engage and reward * Source: Scanlife 2012 Q2 Trend Report

12. Mobile Barcodes • Mobile barcodes or tags encode information that allow physical objects to link to the mobile web • Utilizes Smartphones/mobile devices as the interface to decode the two-dimensional barcode/Tags • Originally 70+ types of 2D barcode or tag types; now down to a handful of serious players for marketing engagement: QR Code SnapTag Microsoft TAG

13. 2D Barcode and Tags – QR Codes • Initially a highly-fragmented landscape with numerous 2D barcode types • QR Codes have risen to become the most broadly used mobile barcode • Open licensing • Included in many barcode readers that were previously proprietary • Generalized QR Codes – Printed traditionally or digitally; every responder gets the same code. • Personalized QR Codes – Every code is unique and each code points to a specific barcode related to the individual

14. 2D Barcode and Tags – QR Codes • QR stands for “Quick Response” • Invented in Japan by Denso Wave in 1994 • It is a two-dimensional barcode readable by Smartphones/devices • Essentially a web address/digital information in a graphical format • Takes consumers to mobile content. • Easy to encode through onlineQR Code generators, or systems that provide basic analytics • No special printing needs

15. Why Insert QR Codes In Your Marketing Campaigns? • Have a good reason to do so, what is your end goal? • Provide a solid value/payoff for the customer to engage with the barcode • Be aware of the user experience • How will users relate and interact with the content • Is there an offer, coupon – does the interaction improve your brand, or engagement with the customer • Have a clear call-to-action and keep content as relevant and specific as possible • Make sure content is MOBILE OPTIMIZED

16. Mobile Barcode Destination Content

17. Analyzing the Data • Pre-Populated Landing Pages Entice Corrections • Self-cleansing data • Segment Warm and Hot leads • Tailor follow up communications • Peak & Non Peak Visits • Do segments respond at the same time? • Orphaned Pages • When did they abandon the offer? • Test and Learn Strategies • Experiment testing with offers & incentives to different segments. Data Analysis is Key

18. Versioning Strategy • Within the same campaign, we can use QR Codes to track performance based on geography, media, segment, etc. • QR Code testing examples: • Regional/Demographic Segments • Marketing vehicle • Timing • Offer testing

19. Custom Design Codes Adding graphics/logos made possible through error correction and redundant information contained in the code

20. QR Code Considerations • Unfortunately there are no absolutes • Size; recommend no smaller that ¾” x ¾” • (1” x 1” if you can afford the space) • Clear area around the code to improveodd of successful scan • Contrast; high contrast between foreground and background • Darker color on lighter background – do not reverse out • Code density/error correction • Keep URL as short as possible • (consider a URL shortener or redirect) • Understand your environment and what your code is exposed to Level L (Low)7% of codewords can be restored. Level M (Medium)15% can be restored. Level Q (Quartile)25% can be restored. Level H (High)30% can be restored

21. Codes in Action Industry Examples

22. RR Donnelley 2010 Annual Report • Showcased QR Codes as link to enhanced content

23. Best Practices: Best Buy • Best Buy is utilizing QR Codes in marketing and in store

24. Catalog Application: Link to Video • Sears Tool Catalog • Links to product specific videos throughout the tool catalog

25. Personalized QR PURL – Catalog • Personalized QR Code resolves directly to Mobile PURL landing page

26. QR Code to App Download

27. Near Field Communication (NFC)

28. Near Field Communication (NFC) • Proximity triggered interaction between NFC devices • Uses; mobile payment, peer-to-peer sharing, link to mobile web • People with a compatible phone simply tap (or get close to) your NFC-enabled materials to open a web page, dial a phone number, see a free message, open a Vcard, or download a mobile app. • Typical print applications require NFC tag applied via label • Variation on RFID technology

29. Near Field Communication • To make the situation still more complex, NFC is a ‘chicken and egg’ technology. • To succeed, NFC functionality needs to be put into the hands of sufficient consumers to attract service providers to the technology. • And, to attract a critical mass of consumers, sufficient services need to be available to provide consumers with a reason to equip themselves to use them. • NFC is still very much in its infancy when it comes to understanding which business models hold the greatest long-term potential. • About 20 percent of phones worldwide might have NFC capabilities by 2014* *Juniper Research

30. Image Recognition &Digital Watermarking

31. Image Recognition • Utilizes visual search to link to content • Uses; link visuals from ads to specific mobile content • Current observations: results dependent on lighting conditions, quality of camera and library of images referenced • Amazon Flow app is a recent successful, but very specific example of this technology

32. Digital Watermarking • Digital Watermarking used as a trigger offers another method to access online content. Imprints an invisible pattern into the image which triggers the link information. • Digimarc Discover is a good example of this approach; • How it Works; at the core of Digimarc Discover is digital watermarking technology to give Smartphones the ability to see, hear and engage with all forms of media.

33. Augmented Reality

34. Augmented Reality - Overview, Background and Evolution • Augmented reality (AR) is the integration of digital information with live video or the user's environment in real time. • Main types of augmented reality: • Geolocation – overlaying information based on location (i.e. storefinder, social media applications showing location of users/posts) • Printed Markers – extending print beyond the page by using the printed piece as a trigger/tracking device to overlay graphics, animation and digital information • Natural AR – based on real world object recognition • Uses; Location overlay, product preview/interaction, virtual dressing rooms, enhanced information and experience

35. Augmented Reality • Current observations: Forrester Research analyst Thomas Husson also says mobile AR is not yet delivering on its promise. But "in the years to come, this will be disruptive technology that changes the way consumers interact with their environment."

36. Augmented Reality Example - LEGO • Lego Store – Retail Kiosk: http://www.youtube.com/watch?v=mUuVvY4c4-A

37. Augmented Reality Example

38. IKEA 2013 Augmented Reality Catalog • Augmented Reality accessible via the IKEA Catalog app • Additional product views and alternate detail images • Interactive features • Inspirational films • How-to guides • Idea starters

39. Retailer Insights • “Retailers need to think of their business as a multi-channel environment that can potentially include mobile, online, and bricks and mortar stores.” • “Winning with shoppers requires a consistent experience across channels that reinforces the values you represent as a retail brand, whether it be price, service, reviews, selection, style, or other key attributes.” The Nielsen Company – Nielsen Wire 03-2012

40. Summary • Mobile is poised to be an increasingly demanded channel • Mobile engagement tactics are tools to enhance customer experience and brand engagement • Leverage analytics and information gained to shape future communications

41. Thank You