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A study of the use of QR codes in US Magazines by Nelly Moser.

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QR codes magazines- advertising

  1. 1. ™ MOBILE ACTIVATED PRINT IN MAGAZINE ADVERTISING INCLUDING QR CODES AND WATERMARKS Q2 2012 By Roger Matus, Executive Vice President, Ann Carver, Analyst and Maria Tricca, Marketing Manager, Nellymoser, Inc. P1 The number of mobile action codes, such as QR codes, Microsoft Tags and digital watermarks, in the Top 100 U.S. magazines jumped dramatically in Q2 2012. A total of 2200 codes were printed during the quarter, up from 1365 in Q1 (61% growth). This is more than double the 1062 codes printed one year earlier in Q2 2011 (107%). A total of 2200 To understand how these mobile action codes are being used in codes were printed magazines, Nellymoser surveyed every issue of the top 100 U.S. during the quarter, magazines by circulation in 2011 and the first six months of 2012. The up from 1365 in Q1 study is limited to national titles readily available on newsstands. This (61% growth). eliminated publications that require a membership, such as AARP Action Codes By Quarter 2011 2012 2500 A c t i on C od e s 2200 2000 1899 1500 1365 1062 1155 1000 500 352 0 Source: Nellymoser Q1 ⁄ Q2 ⁄ Q3 ⁄ Q4 ⁄ Q1 ⁄ Q2 To p 10 0 M a g a z i n e sNellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  2. 2. Action Codes Per Month 810 2011 800 2012 704 700 686 A ct i o n C o d es 681 631 600 598Every 587magazinein our study 500 507 449printed atleast one 400 394 373 370mobile action 318code during 300 295the quarter. 278 200 170 100 94 88 Source: Nellymoser Jan ⁄ Feb ⁄ Mar ⁄ Apr ⁄ May ⁄ Jun ⁄ Jul ⁄ Aug ⁄ Sep ⁄ Oct ⁄ Nov ⁄ Dec Top 1 0 0 M aga z i n es P2 magazine and regional titles. For the Most months in 2012 showed a continuing purposes of this study, we refer to this list upward trend from month to month, as as the Top 100 magazines. the graph above illustrates. In addition, the lines for 2011 and 2012 appear to To compile the data, Nellymoser analyzed be parallel, indicating that interest and every page in each issue within the Top 100 investment in mobile activation codes magazines. In Q2 2012, we counted: continues at a rapid rate. • 46,132 total magazine pages, up from A year-over-year analysis shows that the 38,719 in Q1 2012. number of action codes rose more than 150% in the first half of each year (3565 vs. • 19,976 total advertising pages, up from 1414). If this trend continues, more than 15,691 in Q1 2012. 11,000 codes will be printed in 2012 with Nellymoser activated every QR Code, more than 1000 codes printed per month Microsoft Tag, Digimarc watermark, starting in September or October. SpyderLynk SnapTag, JagTag, recognizable image and any other code we found with The projected growth pattern for Q3 may an iPhone or Android device. We ran every well be exceeded. Two magazines have campaign, watched every video and visited already announced record breaking code every web page. use for September. Seventeen’s September 2012 issue will contain more than 250 Action Code Growth activated images. GQ announced that their September issue will activate every For the first time in Q2 2012, every advertising page with image recognition. magazine in our study printed at least one mobile action code. All but ten of the The code count growth rate tells only part magazine titles printed 10 or more codes in of the story. the quarter. Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  3. 3. Percentage of Ad Pages With An Action Code 11 10 2011 2012 9.77% 10.40% A c ti o n Co de s 10.19% 9 8.30% 8.36% 8.90% 8 7.42% 8.05% 7.96% 7 6.48% 6 5.16% 5.02% 5.76%More than 10% 5of magazine 4.02% 4.96% 4ad pages 3 3.55%contained a Source: Nellymoser Mar ⁄ Apr ⁄ May ⁄ Jun ⁄ Jul ⁄ Aug ⁄ Sep ⁄ Oct ⁄ Nov ⁄ Dec ⁄ Jan ⁄ Feb ⁄ Mar ⁄ Apr ⁄ May ⁄ Juncode in Q2 To p 1 0 0 M ag az i n es2012, up from5% just one The most revealing way to understand the Fitting a trend line to this data projects impact of action codes on a month-to- that the percentage of advertising pagesyear ago. month basis is to look at the percentage containing an action code will reach or of advertising pages with an action code. exceed 12% in September 2012. This is because the percentage calculation normalizes for the number of issues printed The average and median number of codes and the number of ad pages per issue. in Q2 2012 were the highest we have seen, P3 except for Q4 2011, which was helped by Reasons for focusing on percentage holiday season promotions. The greatest numbers for month-to-month comparisons number of codes in a magazine issue was include: (1) weekly magazines print more 51. issues in some months than others, (2) some magazines skip or combine issues for QR Codes Lead Market certain months or weeks during the year -- especially in the summer and around the As the graph on the next page shows, year-end and (3) certain months, especially QR codes and Microsoft Tags continue to during the holiday season, tend to have dominate the mobile activation market. more advertisements.) However, QR now has a significant lead with more than an 80% market share. As the chart above indicates, more than This is a significant change from Q2 and 10% of magazine ad pages contained a Q3 of last year when the market was split code in Q2, up from 5% just one year ago. between QR and Microsoft Tags. Number of Action Codes Per Issue Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Average number of 2.33 4.23 4.83 6.50 4.88 6.07 codes per issue Median number of 2 3 4 5 4 5 codes per issue Greatest number of 12 29 54 70 32 51 codes in an issue Number of action codes per issue for issues that contained at least one action code. Each weekly issue of a weekly magazine counted as a separate issue.Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  4. 4. Action Code Market Share By Month 2011 2012 QR Code % of Acti o n Co des 100 Microsoft Tag 90 Other 85% 85% 80% 80% 82% 80 77% 76% 74% 70 68% 65% 63% 60 55% 50Two new 40technologies 41% 30 32%made their first 21% 33% 20 25% 17% 14%appearance in 23% 13% 12% 13% 10 17%2012. 11% 0 5% 4% 4% 7% 6% 7% 2% 2% 1% 2% 1% Type of Code Jul ⁄ Aug ⁄ Sep ⁄ Oct ⁄ Nov ⁄ Dec ⁄ Jan ⁄ Feb ⁄ Mar / Apr ⁄ May ⁄ Jun Aug. Reality 1 Digimarc 5 29 8 8 46 5 JagTag 7 14 10 9 10 3 2 3 3 3 3 4 MSFT Tag 88 152 109 145 226 105 72 57 69 88 139 96 NFC 1 Other 1 1 QR 175 202 346 433 440 502 244 359 494 599 615 576 P4 SpyderLynk 7 1 40 5 14 1 24 1 7 2 WIMO 1 1 2 2 2 2 Digimarc watermarks now lead the “Other” used with augmented reality, appeared on category, having risen from just five codes the cover of the Sports Illustrated in March in all of 2011 to 96 codes in the first half 2012. Image recognition is attracting of 2012. Digimarc watermarks enable interest in magazines as they do not publishers to create custom branded icons require any change in the image itself which match the look and feel of the brand or the pre-production process, as other instead of QR codes. This makes them mobile action codes do. popular with many designers. The first Near Field Communications (NFC) Two new technologies made their first campaign appeared in Wired, which is appearance in 2012. Image recognition, not one of the Top 100 magazines. NFC Demonstration of New Mobile Activation Technologies Image recognition with augmented reality (left) and Near Field Communications are two new technologies that appeared in 2012. Short video demonstrations (about 90 seconds) of these technologies may be seen at http://www.youtube.com/nellymosertv.Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  5. 5. Uses for Action Codes Q2 2012 Video: 40% Opt-in/Subscribe/Sweeps: 19% $ Social Media: 18% Buy Online 14% $ Store Locator: 12%Video is by far Coupon: 7%the most widelyused mobile Photo Gallery: 5%experience (40%). Downloads: 4% Recipes: 4% Voting: 1% Source: Nellymoser NOTE: Columns total more than 100% because each action code may lead to more than one engagement. For example, it may show a video and then offer to share the video. enables a phone to be activated just by • Data Capture and List Building (Opt- placing the device on an ad. However, it ins / Subscriptions / Sweepstakes): P5 adds the expense of embedding an NFC Action codes are effective for building chip into the advertisement. We believe databases because readers can that cost will slow NFC adoption in the near respond immediately and wherever term. they are reading the magazine. How Action Codes Were Used Sweepstakes were, by far, the largest contributor in this category. While a As shown in the chart above for Q2 2012, sweeps can be run with just one action video is by far the most widely used mobile code, there is a growing trend towards experience (40%). Sweepstakes and social sweepstakes that use multiple codes media are the next most common uses, and span an entire issue with multiple with each being around 20%. advertisers and editorial sections participating. Nellymoser scanned every code, activated each campaign, watched each video and • Commerce (On-line Store, Brick- completed actions requested for the and-Mortar Store Locator / Coupon): mobile campaigns. Our qualitative analysis Readers can immediately scan and is that most action codes were used for one act on a desire to purchase. Links to a or more of the following four purposes: corporate e-commerce store led the category at 14% followed by in-app • Branding and Demonstrations: By store locators at 12%. Some store far, the largest usage for action codes locators used the phone’s built-in GPS was to showcase a video. These videos to find the nearest location. are often created specifically for mobile • Social Media: Action codes were also use. Examples include: used for sharing via Facebook, Twitter, • A behind-the-scenes look Pinterest and email. In Q2, 18% of • A product demonstration codes enabled readers to share a video • A how-to video link or product information via social • An entertaining video Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  6. 6. media. (NOTE: Only social sharing that As Nellymoser tallied each action code for was part of the mobile campaign was this study, our team took notes about the included. Some video campaigns led scanning experience. While our notes do to a YouTube Channel, which in turn not lead to precise counts, as the other has a social sharing feature. These statistics do, Nellymoser is able to identify were not counted.) general trends. We learned the following: Mobile-Capable Sites • Approximately 10% of all action codes went to “web content,” such as Almost all scans resulted in an experience company home pages, a web form or a that was technically viewable on a mobile desktop-style e-commerce site.Nearly half of phone. However, a quarter of these mobileall action codes experiences appear not to be designed or • About 10% went directly to a YouTube optimized specifically for mobile use. video or a YouTube Channel mobile(49%) came from page. While they showed videos, theycompanies in just Nellymoser classifies mobile experiences were not optimized with experiencesfour industries: into the following categories: after the scan, such as a sign-up form.beauty, home, • Roughly 1.5% went directly to a • Web Content A web site that ishealth and auto- technically viewable on a smartphone, Facebook page.motive. but mobile was not a consideration in • Another 1.5% would not scan or site design. contained bad links, including • Mobile Capable: Technically viewable eight codes that linked to a QR on the phone (e.g., written in HTML5) code generator site. (Nellymoser but not optimized for conversion, categorizes these as “Does Not Work.”) P6 campaign goals, etc. Top Industries and Brands • Mobile Optimized: Both Mobile Capable and optimized to achieve Nearly half of all action codes in Q2 2012 campaign objectives. It is fast and (49%) came from companies in just four easy to use on a wide range of mobile industries: beauty, home, health and auto- devices. motive. Top 10 Industries and Brands Q2 2012 Ac t i o n C o de s Act i o n C o des 1 Beauty 1 Sally Hansen 360 64 / ⁄ 2 Home 2 John Frieda 303 / 32 ⁄ 3 Health Infiniti 3 217 / 27 To p I n d u s t r i e s ⁄ 4 To p B r a n d s Automotive 4 Nivea 195 / 26 ⁄ 5 Food/Bev 107 5 Cuisinart, Tyson / 6 25 ⁄ Fashion 105 7 Progressive / 7 Pets 23 ⁄ 77 8 / Restart Fitness 8 21 ⁄ Pharmaceutical, Travel 9 Essure 73 / 19 ⁄ 10 Financial 10 Blue Buffalo, Botox Migraine, 58 Tide Pods / Source: Nellymoser 18 Source: Nellymoser Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  7. 7. Automotive joins the top four industries list Top Magazines Q2 2012 for the first time. There was a big jump in Act i o n C o des the use of codes by the automotive indus- 1 Better Homes and Gardens try, from 81 codes in Q1 2012 to 195 codes 75 ⁄ this quarter. To p M a g a z i n e T i t l e s 2 InStyle 66 The number of advertising codes used by ⁄ 3 Popular Mechanics the fashion industry has remained relative- 65 ⁄ ly constant since Q1 (105 versus 90). How- ever, due to the growth in other categories, 4 People 60 fashion fell from fourth place to sixth place ⁄The number of in the list (from 15.7% in Q1 to 4.1% in Q2). 5 Bloomberg Businessweek 59brands using ⁄ Traditional Home, The number of brands using action codes 6action codes Car and Driver 56 jumped by one-third from 451 in Q1 to 598 ⁄jumped by one- 8 Shape in Q2. This shows increased adoption.third from 451 in 51 ⁄Q1 to 598 in Q2. Most of the 12 brands on the top 10 list this 9 Marie Claire, Allure quarter were not on the top 10 list in Q1. 46 ⁄ Source: Nellymoser Only Tyson, Restart Fitness and Blue Buffalo repeated. Top Magazines By Number of Codes Per Issue Top 10 Magazine Titles Ac t i o n C o d es P er Issu e Better Homes and Gardens, InStyle and 1 Better Homes and Gardens 25.0 P7 Popular Mechanics topped both the list of ⁄ magazines with the most number of action 2 InStyle codes and the highest average number of To p M a g a z i n e T i t l e s 22.0 action codes per issue during Q2 2012. ⁄ 3 Popular Mechanics 21.7 ⁄ We believe that the average number Traditional Home, 4 Car and Driver of codes per issue is the best way to 18.7 ⁄ determine the Top Magazines because the 6 Shape calculation puts weeklies, monthlies and 17.0 ⁄ those that skipped an issue on the same 7 Marie Claire, Allure basis of comparison. 15.3 ⁄ 9 All of titles on the Top Magazines By Cosmopolitan 14.7 ⁄ Number of Codes Per Issue list, except 10 for Better Homes and Gardens and Popular Woman’s Day 13.7 ⁄ Mechanics, appeared in the Q1 list. Better 11 Redbook Homes and Gardens jumped to the top of 13.3 the list with two issues containing nearly Source: Nellymoser ⁄ 30 codes each. Popular Mechanics rose to third place with two issues with 20 or more practice and follows the pattern of many codes. other calls to action. Action Code Text There is a clear trend moving away from having other content around the QR code, In Q2 2012, 58% of all action codes which is an indication of wider acceptance. were accompanied by information that Only 13% of codes were customized and described what happens after the scan. only 6% were accompanied by an icon. This is considered by many to be a best Few codes were accompanied by an SMS campaign. Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  8. 8. Action Codes In Print Q2 2012 58% 13% Describes destination Are customized Scan to Shop 6% Get the Free App 26% Have icon From Nellymoser Use color Go To: ScanNow.mobi Or text SCAN to 800-555-1234There is a 3% 16%clear trend Choice to use SMS Have instructions to get appmoving away Source: Nellymoser, Inc.from having Action Code Page Location magazines. The number of codes,other content 2200, exceeded even the 1899 codesaround the QR More than 85% of action codes are placed printed during the 2011 holiday season.code, which is on the bottom half of the page, the traditional location for a call to action. • One out of every ten advertisementsan indication contained a QR code or other actionof wider The diagram below divides a magazine code. The peak month was May with page into quadrants and shows by 10.4% of advertising pages containingacceptance. an action code. percentage where the codes appeared. Numbers that overlap quadrants indicate • The rate of growth in the percentage P8 that a code crossed quadrant boundaries. of advertising pages is growing fairly steadily. If the trend continues, the Conclusion and Key Findings percentage of advertising pages with a mobile action code should exceed 12% For Q2 2012, Nellymoser analyzed by September 2012. 46,132 pages in the top 100 U.S. national magazines. We reached the following key • QR codes are the clear market leader conclusions: with more than three-quarters of the market since December 2011. Microsoft • A record number of mobile action Tag remains in second place with a 12% codes appeared in the top 100 to 17% share. Action Code • Digimarc watermarks have become Location on Page the leader in the “Other” category. New technologies, such as image recognition with augmented reality and NFC have entered the market. 0.5% 6.9% • A significant number of campaigns that 2.8% lead to desktop web sites have broken links or do not scan at all. 0.8% 0.3 % 0.5% • Four types of campaigns dominate the use of action codes: 45.2% 40.4% • Video demonstrations and 2.6% branding • Data capture and list building Source: Nellymoser, Inc. Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  9. 9. • Links to e-commerce sites and number of brands jumped to 598 in Q2, store locators for brick-and-mortar up from 451 in Q1. locations • More than 85% of action codes are • Social media sharing with links to placed on the bottom half of the page. Facebook and Twitter Nellymoser intends to update this report • About half of all action codes used in on a regular basis to identify trends. magazines came from companies in just four industries: beauty, health, Get notifications of future updates by home and automotive. following Nellymoser on Facebook atA significant http://www.facebook.com/nellymoser. • More brands have adopted mobilenumber of action codes than ever before. Thecampaigns thatlead to desktopweb sites havebroken links ordo not scan atall. P9 About Nellymoser Nellymoser’s customers include leading publishers, advertisers, retailers and Nellymoser, Inc., (http://www.nellymoser. consumer packaged goods companies. com), is a mobile marketing and technology services company founded in Scan To See Nellymoser In Action: 2000 and headquartered in Arlington, MA. Nellymoser creates interactive consumer experiences on mobile phones and tablets. The company is expert in producing mobile-activated print campaigns, companion apps and mobile-optimized web sites that engage consumers, foster brand loyalty and drive revenue for clients. Copyright 2012 by Nellymoser, Inc. All Rights Reserved. Not responsible for errors and all information is subject to change without notice. Nellymoser and the Nellymoser logo are trademarks of Nellymoser, Inc. All other marks are the property of their respective owners. Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | questions@nellymoser.com
  10. 10. Bring Your Pages To LifeWith Mobile EngagementVideo Demonstrations, Branding Social Sharing Commerce, Find A Store, Comments, Feedback, Ratings Coupons, Deals, Special Offers Up-to-the Minute, Expanded Sweeps, Subscriptions, Print Content Opt-insNellymoser builds and delivers highly effective andcomplete print-to-mobile and print-to-social solutionsfor advertisers and publishers. You will engage readersand shoppers so that they will spend more time with  We are mobile user experience (UX) experts. Our high impact mobile experiences are dynamic and immediately accessible.your brand. Our cloud-based Mobile Engagement Platform increases mo-We will help you be successful the first time. Our  bile performance, provides high availability and assures the highest quality on the widest range of mobile devices.experience with more than 500 mobile campaigns Nellymoser’s Companion App offers a completely brandedmeans better results and faster delivery. We know whatworks.   mobile experience that enables advanced features such as branded icons, augmented reality and shoppable video.Nellymoser mobile engagements can range from Videos look better. Nellymoser HQ Videos are configured anda simple video that is launched by a QR code toa completely branded mobile experience with  optimized in real-time to deliver the best for any phone type, display size and network.augmented reality using our mobile Companion App.Get better results when your pages come to life withNellymoser.  Detailed analytics provide a complete understanding regard- ing the effectiveness of your mobile campaign.Nellymoser, Inc., 11 Water Street, Arlington, Massachusetts 02476 USA +1.781.645.1515 www.nellymoser.com Copyright 2012 Nellymoser, Inc. All Rights Reserved. Not responsible for errors and all information is subject to change without notice. NELLYMOSER is a trademark of Nellymoser, Inc. All other marks are the property of their respective owners.