Wednesday, June 17, 2009

2D Barcodes and Digital Signage - Part I

A few months ago I gave my thoughts on Adcentricity's partnership with Impact Mobile. When first writing the post I ended up off on a tangent discussing 2D barcodes - the technology's present state and future possibilities, as well as how it could be integrated with digital signage. I theorized that Adcentricity's partnership with Impact Mobile would lead to 2D barcodes being used in digital signage at an increased rate. The foundation of this theory was born from Impact Mobile's tie up with Scanbuy, one of the largest providers of 2D barcode technology in the world.

So as not to confuse the issue I decided to make my initial post on Adcentricity and Impact more concise and save the 2D barcode discussion for later. Well here we are.

There are a number of companies who are racing to bridge the physical and digital worlds through 2D codes - matrix-like patterns that can hold much more data than the ubiquitous striped barcodes. 2D Codes (QR codes are one of the most common types) storing addresses, unique calls-to-action, and URLs may appear in magazines, on signs, buses, business cards or just about any object that users might need information about. Users with a camera phone equipped with the correct reader software can scan the image of a 2D Code, causing the phone's browser to launch and redirect to the programmed URL. 2D codes can also trigger the transmission of an SMS or MMS response, a phone call, loyalty coupon, and contact information.

2D Barcodes enable brands, retailers, media outlets, etc. to push digital content to handsets at the moment a person is most interested in a certain topic. These data-heavy content tags act as gateways to a more personalized consumer experience. There are countless ways in which the technology can be used. 2D barcodes can connect people with geo-based reviews and tours (Citysearch), green ticketing initiatives, brand promotions, product-specific wikis, exclusive media content, etc. 2D barcodes allow consumers to access dynamic content anywhere at anytime.


Oppportunities abound for linking 2D barcodes and digital signage. A few companies - Snappr and Creative Search Media have been the most active thus far - have emerged to capture this market, but the playing field is wide open for a savvy mobile company to become the 2D code solution of choice for the digital signage industry. In line with the targeting opportunities digital signage presents, 2D barcodes offer a dynamic media channel from which to extend consumer relationships, distribute content, and garner campaign metrics.

Even though 2D barcodes have yet to really catch on in the US , this situation could be remedied in a very short time. Brands like Nike, Sears, and Microsoft have integrated 2D codes into multi-platform media campaigns, but the technology is still very far from mainstream acceptance in the United States. The bottleneck to 2D barcode adoption is the required software that must be installed on a phone before it can used to read the unique codes. Since the burden of downloading the application rests with each phone user, it is a major barrier to broad adoption. QR codes are widespread in Japan because manufacturers pre-load phones with barcode reader software. QR readers are pre-installed on about 70% of all phones in Japan.

Digital signage could prove influential in increasing 2D barcode adoption. While other media platforms are limited in how they present mobile marketing instructions, digital signage has expansive visual capabilities, in addition to offering companies the ability to update marketing messages and creative elements on the fly (more quickly and efficiently determine which advertisement generates the greatest response).

To access "2D Barcodes and Digital Signage - Part II" click here.

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