QRs help US majors engage customers

Suddenly, they're popping up everywhere. Those square, futuristic-looking matrixes that appear to be a cross between abstract art and Rorschach tests.

You'll find them in the corner of newspaper and magazine ads, in department store aisles, on product displays, price tags and For Sale signs in front of homes. Giant-sized versions have shown up on billboards.

Called quick response codes, or simply QRs, they're the barcodes for the digital age — but ones that convey far more information, and which can be scanned by consumers with smartphones and tablet computers to open a web page, play a video or even place a call. The technology has been around for years, but only recently has it been embraced by US retailers and other companies looking for fresh ways to connect with customers.

The number of QR scans recorded by the industry's leading code maker has soared to two million a month, nearly double the rate last year, and up from 80,000 a month in 2009. "Advertisers are regarding them as the hottest new tool of mobile advertising," said Colin Gibbs, an analyst at research group GigaOm Pro.

"They love QRs because they're cheap and easy to deploy, and you can put them anywhere from print ads to the back of stadium seats."

Macy's has QRs displayed throughout its stores, with signs giving step-by-step instructions on how they're used. Shoppers who aim their smartphones' cameras at the codes get videos — on their phone screens — of make-up guru Bobbi Brown dispensing application tips or Martha Stewart dishing out decorating advice. Customers at Home Depot get on-the-spot access to how-to guides and videos.

Gap, Target, Starbucks and Ford Motor have used them in advertising.

QRs were invented in the mid-1990s in Japan, where smartphones gained early acceptance, and where companies such as McDonald's have long stamped them on hamburger wrappers. Their widespread adoption in the US has paralleled the growth of smartphones and tablets with high-quality cameras and apps; Nielsen projects that about half of all Americans will own smartphones by year's end.

Awareness

Consumer awareness still lags behind. Only 5 per cent of total smartphone owners in the US have scanned a QR, according to Forrester Research. But it's on a sharp curve upward.

About 25 per cent of Android phone owners and 7 per cent of iPhone users tried out a QR in the second quarter of 2010, and that number is expected to rise this year, Forrester said.

Still, QRs remain a mystery to many — including some who grew up in the digital age. Identical twins Matt and Adam Rinne, 32, were puzzling over the squares on a recent afternoon at a Best Buy in Burbank. Most of the higher-priced gadgets in the store, including laptops and cameras, had one stamped onto its tag.

"I've seen these things everywhere," said Adam, who like his brother is a personal trainer. "I consider myself somewhat tech savvy, and I still have no idea what they are."

Home Depot, which began putting QRs in stores and on ads in March, is betting that people will soon learn. "This is where other large retailers are heading," said Tom Sweeney, senior director for online strategy at the home improvement chain.

"We wanted to make sure we were in line with the retail world. It's definitely coming into its own and becoming a more prevalent way for retailers to connect broadly and engage with customers."

Marketing

Small businesses have gotten on board as a cost-effective way of marketing to consumers. Joe's Jeans, a clothing retailer based in Commerce, will roll out displays with QR codes at its 20 shops in coming weeks.

"They'll link to our social media sites, have contact info and eventually product-specific info," said company spokesman Robert Muzingo said.

For privacy advocates, however, QRs are one more source of concern. That's because the codes don't just impart information, they can also collect data on where and when a QR was scanned.

They can, in some cases, even latch on to the phone user's name, age and other personal information.

— Los Angeles Times