A recent article in Advertising Age touted the use of 2-D barcode technology as an innovative way for marketers to move into mobile. Their first case in point, Mexican restaurant, Qdoba, which used the technology as a way to market to college students – a veritable digital version of coupon clipping.
Qdoba used the technology from Jagtag, which enables consumers to request and instantly receive on-demand digital content directly from a variety of advertising means: print, out-of-home, point-of-sale, direct mail, collateral, packaging, products and physical structures. According to Jagtag’s website, the process is seemingly simple:
The mobile consumer:
(a) sees a brand offering content (in Qdoba’s case, newspaper ads and promotional posters)
(b) scans the barcode into their phone (by either using the camera phone or a barcode scanner)
(c) sends a text message to the number advertised
(d) instantly receives a mobile coupon (for instance, a buy-one-get-one-free burrito) via SMS
JagTag calls it “interactive brand engagement.” Qdoba received a 52% coupon redemption rate.
The 2-D Barcode, also called QR Code – for Quick Response Code – was developed in Japan, where most cell phones have the technology already built in.
The technology is catching on a little more slowly in the United States, if only because downloading the applications required to read the codes seems like an extra hassle for consumers.
According to AdAge:
Jagtag is trying to solve that problem by making it easier for consumers. Rather than downloading an application, they take a picture of Jagtag’s 2-D barcode and send it to a short code, and Jagtag sends back a URL, coupon or other media via multimedia messaging service.
But analysts and Jagtag competitors agree that for 2-D barcodes to gain any meaningful traction, the code reader must come preloaded on cellphones — and only the wireless carriers can make happen, as they dictate the specs to handset makers.
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