Next Wave of Advertising: Cell Phone Pointers
Scannable bar codes will deliver detailed information, coupons and freebies.
By Michael Doan, Senior Associate Editor, The Kiplinger Letter
October 29, 2008
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Advertisers, cell phone makers and service providers are joining forces, and consumers may not mind so much. Cell phones can now scan bar codes on movie posters and TV and magazine ads to offer up more detailed information and in many cases, coupons or freebies.
For example, a phone aimed at a movie poster might get reviews and local start times displayed on the phone's screen. Phones pointed at ads on TV or a Web site on a computer screen could deliver the same information. Use your phone to scan a sign at an airline counter to find out arrival times of incoming flights.
The technology is already commonly used in Japan and Europe, where consumers regularly download coupons or other advertising offers. Multiple bar code standards in the U.S. are slowing adoption here, but agreements are being worked out so use of the technology is expected to pick up steam next year.
Getting a head start are companies such as Scanbuy, which has bar codes on Billboard magazine advertisements for downloading free music, in restaurant windows for critics' reviews, on signs in front of real estate sales with details, and at Sears home appliance centers, featuring product reviews.
"It's easier to go point at a bar code and click than to enter urls for Web sites, which takes time," says Jonathan Bulkeley, chief executive officer of Scanbuy.
Another firm, Mobile Discovery, is getting help from Case Western University in Cleveland to test bar codes for all sorts of information. Bar codes on school newspaper ads link to advertiser Web sites. Students use bar codes to enter company-sponsored sweepstakes. Bar codes posted at public transit stops tell students when the next GPS-enabled bus is scheduled to arrive.
The bar codes are two-dimensional and have more information that cannot be transmitted from the one-dimensional bar codes routinely used in packaging and retailing. Many phones already contain the software needed to scan the ads, and the software can be added to many other phones for free from the Web.
Another early adopter of the technology, SnapTell simply has users take pictures of the ad and type in a few numbers to reach the advertiser's Web site rather than scan a bar code. By pointing to a Discovery Channel ad in Wired magazine, for example, readers can get a video clip of a new show on the Discovery network. An HBO ad in a sports magazine provides a download of a ringtone and an announcement of when the show airs. In a men's magazine, Gillette offered mail-in discount coupons to people who pointed their phones at an ad.
One benefit for advertisers is that they can gather data on customers. The data will show the location of the cell phone transmission or demographic information about the publication being read. Different ads can be sent to individuals, based on their likely age or geographic location. In exchange, companies will offer freebies, such as product trials or ringtones, etc.
As the use of Web-enabled smart phones grows, there are bound to be hundreds of new applications. At a museum, for instance, you might be able to scan an ad's code to get an exhibit's details. Point to a magazine article, and a reader could get a detailed text interview with the author or an audio recording of an interview the writer conducted. Readers could download recipes embedded in bar codes in women's magazines.
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Reader Comments (4)
Posted by: Joe Honick at 10/29/2008 02:19:21 PM
What you cite is only the first step before getting tons more of those sickening and undesirable telemarketing calls. With the current economic situation, I have never seen more unwanted marketing telephone calls at all sorts of inconvenient hours including calls from those who allegedly abide by the Do Not Call rules. If any of these character use my cell phone for promotion, I will shower them with plenty in return and frankly wish you would not encourage what will obviously come next.
Posted by: streetstylz at 10/29/2008 07:53:00 PM
It should be noted that: Scanbuy’s indirect resolution process, which they use for their proprietary EZcode, is infringing on NeoMedia Technologies’ core patents. Indirect encoding (patented by NeoMedia) is the process of linking the target information to an index (364528 for example) and putting that unique identifier into a 1D UPC/EAN or 2D barcode. The code reader on the mobile phone reads the barcode and sends the code data over the Internet to a central resolution server that will tell the mobile phone what action is associated with the index, i.e. access a URL, download media, initiate a phone call, ect. NeoMedia Technologies has a suite of twelve issued patents covering the core concepts behind linking the physical world to the electronic world dating back to 1995. These patents cover various linkage methods including: Barcodes, RFID, Mag Stripe, Voice, and Other machine readable and keyed entry identifiers. NeoMedia brought suit against Scanbuy for patent infringement. Litigation has been ongoing.
Posted by: brewskih at 11/27/2008 08:00:46 AM
It should be noted that Streetstylz is a Neomedia shareholder who spams any blog tha mentions Scanbuy with the same copy and paste comment used above. It should also be noted that Neomedias core patent he references is currently going through re-examination by the USPTO to determine whether its valid or not. It should also be noted that the USPTO has issued its first non final ruling, stating that all 95 claims of that patent are invalid. It should also be noted that Neomedia responded to that non final action, by removing some of its claims, and modifying others, thus making the patent less broad, in an effort to get the USPTO to change their minds about their initial finding in the re-exam. It should also be noted that Neomedia has repeatedly stayed their legal action against Scanbuy, pending outcome of the USPTO ruling. It should also be noted that Scanbuy yesterday filed patent litigation claims against Neomedia. You have to wonder why Streetstylz fails to state all these other issues when he spams the web looking for mentions of Scanbuy and other bar code companies, to post his spam to.
Posted by: Ed Hardy Sunglasses at 05/27/2010 04:18:18 AM
Thank you for sharing I wish I could go somwhere.