The Observer, April 25, 2008
Volume XL, Issue 26
2D mobile barcodes to be launched nationwide after successful trial
The nation's first large-scale 2D mobile barcode trial took place from February through April at Case Western Reserve University in Cleveland, an institution known for its technological innovation. The trial was sponsored by Mobile Discovery, a tech start-up based out of Reston, Va., and has been judged a "great success" by students, faculty, and Mobile Discovery executives.
"We learned a lot, and I'm happy to report our technology platform worked very well," said Mobile Discovery CEO and founder David Miller.
As part of a technology symposium at the university on May 8, the company released findings and implications from the semester-long trial and discussed the potential for 2D barcode technology in non-campus environments. Mobile Discovery was a sponsor of the event, titled "Collaboration Technology and Engaging the Campus 2008," alongside technology titans IBM, Apple, Cisco, and Dell.
"We were pleased to have had the opportunity to work with a technology innovator like Mobile Discovery. The trial was an excellent learning experience, and keeps the Case community exposed to the cutting edge of mobile technology," said Lev Gonick, Case Western's chief information officer and host of the technology summit.
During the symposium, Mobile Discovery set up a display to showcase the different ways that codes were used over the course of the semester: the QVC sweepstakes, Relay for Life charitable promotions, free magazine subscription offers, mobile coupons redeemable at the campus bookstore, shuttle bus arrival time predictors, and content expanders in The Observer. There were even posters promoting popular news outlets like USA Today and Thomson Reuters with codes to access online content and to subscribe to alert services.
The barcodes act as print hyperlinks, eliminating the process of having to type a mobile URL into a tiny cell phone keypad. Instead, using a camera phone, the user scans a barcode, which directs their mobile web browser to a website. If the user doesn't want to look at content on a small screen, he can view his scanned codes on a computer and access content online at a later point in time. "We've enabled time shifting and channel shifting, allowing users to consume content on their terms," said Miller.
"Anything can be enhanced with a code," said Nsi Obotetukudo, a CWRU Master of Engineering Management (MEM) student who served as one of two project managers during the trial. He is now Mobile Discovery's newest hire. "A picture speaks 1000 words; a code speaks volumes more."
Trial findings
During one breakout session at the symposium, Miller shared statistics gathered from the trial's final evaluation survey. Overall, 73 percent of trial participants found value in code scanning; 71 percent said they would recommend the technology to others.
When a user registered for the trial, he was asked to give his name, address, phone number, and e-mail address. Code-enabled offers designed by advertisers were able to request pieces of personal information – a free magazine subscription, for instance, requested name and address. The system allowed users to share information on an opt-in basis. In response to this simple approach, 81 percent of participants found the capability useful for sharing their personal information.
When asked what kind of code content they would want to see, 70 percent of participants said free product sample giveaways; 68 percent said public service utilities, such as a shuttle bus locator; 59 percent said digital rebates and coupons; and 51 percent said free ring tones and downloadable music.
Mobile Discovery successfully introduced public service codes and digital coupon codes over the course of the trial. The shuttle bus locator code was the second most popular code overall – it was scanned by about 39 percent of participants. The campus bookstore coupon was scanned by 15 percent of participants.
The most popular code, however, was the Q Code, which entered students into a drawing for a different prize each day. Half of registered users participated. Those who couldn't scan codes due to phone incompatibilities had the opportunity to create codes and post them around campus, which gave them an equal shot at winning the QVC sweepstakes. Eighty-eight percent of registered users found it easy to create 2D barcode content with Mobile Discovery's online portal.
Finally, the survey asked participants how they would feel about using their mobile phones for an e-commerce transaction in the same way that they often use the Internet. Sixty-five percent said they would be comfortable with this, and of those, about 64 percent said their credit card would be the payment method of choice.
2D barcodes and marketing
Another breakout session focused on the relationship between 2D barcodes and advertising, which is Mobile Discovery's primary focus.
Mobile phones have greater potential for collecting valuable marketing data than any other medium currently available, said Laird Garner, president of Garner Consulting LLC.
A person's cell phone says a lot about their interests, allowing for more targeted and personal marketing. However, the consumer needs to have control over the process.
Mike Kenney, one of the professors who worked alongside the MEM students and Mobile Discovery, agreed. Several years ago, he watched an attempt to launch the CueCat, a tool used to scan barcodes into a personal computer. The technology ultimately failed because the company that owned it began to sell customer information. With Mobile Discovery's 2D barcodes, "privacy issues have been addressed," he said.
According to Miller, Mobile Discovery has "trusted marketers" with whom the company has policy-based relationships.
In addition to mitigated privacy concerns, panelists had other reasons to believe the United States is ready for the technology. For one, said Garner, the barcodes have seen widespread success in Europe and Asia. Many Americans are now equipped with camera phones; the one feature that will cement adoption is flat-rate data plans.
"This generation is now ready to adopt the technology," said Philippe Winthrop, from market research firm Enterprise Mobility Matters. "It's all about the timing and convergence of techniques and processes."
What's more, the barcodes can be used for purposes other than advertising, said Leigh Ann Barnes, trial coordinator. Mobile Discovery and Relay for Life teams at CWRU hosted the nation's first 2D mobile barcode fundraising program on April 16. Company representatives and MEM students helped teams create and promote barcodes attached to prizes, and Mobile Discovery donated $1 to the American Cancer Society for every code created or scanned by Case Western students, faculty, and staff. The event led to more widespread adoption of the technology; on the day of the event, over 1000 codes were scanned with help from a phone bank donated by Sprint.
"It showed the students that it [the technology] wasn't all about money," said MEM student Mike McHugh.
The future of 2D code scanning
Miller says that people should view 2D barcodes in the same way that they viewed text messaging a few years ago.
"Yes, it has kinks," he said. "But history has proven that it's very useful." He believes it will only be a matter of time until the codes start popping up all over the United States.
Project members were well aware of what prevented some students from adopting the technology. First was the financial aspect: students wanted to know how much it would cost them to scan a code, since few have unlimited flat-rate data plans. Mobile Discovery tried to alleviate these concerns by printing the information directly on posters alongside promotional barcodes. The company also used numerous giveaways and contests in an attempt to make scanning worth the cost.
Another concern, said Obotetukudo, was usability: "students wanted to see better applications for the codes."
What's next for Mobile Discovery? Only time will tell. The company is currently preparing for a nationwide product launch and will be operating full-time from corporate headquarters in Reston.
That means no more Mobile Discovery-sponsored barcodes on Case Western's campus, says Miller, though students will still have the option to create codes for their own purposes.
"We'll keep the capability open if students want to use it," said Miller. "My hope is that the students will continue to innovate." Case Western remains the only university in the country to have widespread access to the technology.
