The Future of QR Codes in America

A lot has been said about QR codes and the role they can play in mobile advertising. QR codes make it easier to store a lot of information which can be decoded at a high speed, publishers can reach mobile users effectively by placing QR codes in their print ads, the demand for QR codes in advertising will increase thanks to the surge in high end phone sales, and so on and so forth. In fact, Microsoft has even developed its own 2D barcode technology called Microsoft Tag. Yet, there is a big question that needs to be answered.

Why are QR codes not as popular in the U.S. as they are in Japan and in other parts of Asia?

The concept of using quick response codes in mobile advertising is very popular in Japan. It is so popular that a large number of mobile phones in Japan come preloaded with the application required to scan 2D barcodes. Some of you might remember that I have blogged about QR codes and their role in mobile advertising often on this blog. You can check it out here, here, and here.

Still, when it comes to the U.S., these codes are not nearly as popular as they are in Japan. The reason, according to me, is that business owners and advertisers in the U.S. have yet to realize the enormous potential of the combination of quick response codes and mobile advertising.

Think about it – a restaurant owner can place a quick response code in a print ad and ask the customers to scan the barcode to get that day’s menu or a discount coupon. It is not just limited to restaurant or fast food owners. Movie studios can benefit from it, retailers can benefit from it, small business owners can benefit from it – the possibilities are endless.

I have always said that mobile advertising has a bright future. Even going by the most pessimistic predictions, it can be certainly said that mobile phone advertising will be one of the most sought after advertising media in about a decade from now. If that happens, QR codes will certainly become hugely popular. As the number of high end phone users steadily increases in the U.S., advertisers will certainly look for new, innovative ways to reach the end user. When they do so, they just cannot afford to overlook QR codes.

Already, we have seen glimpses of the potential of the combination of quick response codes and mobile phones. Continental has tried it, AT&T has tried it, and Green Day has tried it. Whether the response met their expectations or not is always debatable. But one thing is for sure – QR codes are here to stay. The sooner it becomes popular, the better it will be for everyone – businesses, advertisers, and the end user.

Categories: Cell Phone Advertising, All things mobile phones, Mobile Web.

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Mobile Advertising Startups Attract VCs Despite Rough Economy

We already saw how bad economy has managed to make a lot of companies interested in mobile advertising. It does not stop there. It keeps getting better and better. According to the latest reports, a lot of VCs (venture capitalists) are interested to invest in mobile advertising start ups as they show a lot of promise despite the rough economy.

Two examples come to my mind right now.

1. Blyk, one of the most popular companies in the market right now, recently managed to raise more than $50 million in private investments in its third round of funding. Considering the growth it has had so far, I would have to say that the investors have made the right choice.

2. AdMob, yet another famous U.S. based company, managed to raise around $16 million a few months back. Again, considering the numbers we have seen so far, this does not sound surprising at all.

If you notice carefully, you can see that there has been a paradigm shift in the advertising industry lately. The money spent on traditional advertising methods like TV ads, radio ads, and print ads has come down significantly. At the same time, mobile advertising is slowly becoming a lot more affordable than it used to be in the past. And thanks to the state our economy is in right now, businesses cannot afford to spend money on ads that don’t deliver results.

The biggest advantage with mobile phone advertising is that it delivers terrific results. The average CTR (click through rate) of a mobile advertising campaign is in the range of 1.5% to 2%. In some cases, it has been unbelievably high thanks to specific, targeted advertising campaigns. For example, the average response rate of Blyk’s mobile ad campaigns is a whopping 29%. So, even if you spend a little more money than what you usually spend, you are bound to get very good results. This is what makes mobile advertising so good.

Research firm eMarketer says that mobile advertising market will grow significantly in the next few years. It says that the proliferation of high end phones has made things easier for mobile advertisers as these smartphones open a lot of possibilities for ads.

In summary – I just have to say what I always say. Mobile advertising is here to stay. Don’t you guys think so too?

Categories: Cell Phone Advertising.

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