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INCREASING THE PERFORMANCE OF TV ADVERTISING WITH QR CODES

11. 12. 202411. 12. 2024
QR codes were invented in the 1990s. Their original purpose was to track vehicles during production. They were better than a traditional barcode because they could store a huge amount of information in a small area and were easy to scan.

The use of QR codes spread quite quickly outside the industrial sector. Consumer goods manufacturers placed them on labels so that shoppers could scan the code to get more information or sign up for a loyalty programme. Marketers across a variety of industries recognized the QR code as an opportunity to engage potential customers in a unique way.

After an initially slow spread, which was mainly due to the need to download a special QR code reader app, high growth came in 2020. In times of pandemic, QR codes were absolutely ideal. By the end of 2020, the number of smartphone users scanning QR codes had increased by almost 25%, from 53 to 66 million.

And QR code usage is still growing today, just more slowly than it was in 2020. By 2025, that number is expected to be nearly 100 million. More importantly, 75% of US consumers say they plan to use QR codes in the future. Among adults aged 18-44, the figure is as high as 82%.

While consumers have quickly adopted QR technology out of sheer necessity and are using them for a variety of purposes, advertisers have not made much progress in understanding best practices for QR codes compared to pre-pandemic times. It's time to change that.

QR codes in TV advertising


Finding a tool that bridges the gap between when a potential customer sees an ad and when they respond to it is every marketer's dream. QR codes are an effective tool for direct response and have huge potential. That's why one can encounter QR codes in a variety of places - from newspapers to billboards and direct mail to television.

During the Super Bowl in 2022, the Coinbase platform aired a minute-long commercial in which a lone QR code floated across the screen like a retro screensaver. The ad was an incredible success. More than 20 million people visited the Coinbase landing page in just one minute, the number of app installs jumped 309% compared to the previous week, and the press could literally break with the news. This minimalist ad heralded a new era of the QR code and its role in marketers' toolbox.

Why is it a good idea to include a QR code in a TV campaign?


A QR code allows a brand to connect directly with consumers. By simply scanning the code, users can instantly engage with a brand's promotional offer or exclusive content, or view exactly what they saw on TV. Direct engagement overcomes barriers and leads to increased short-term response. In addition, the QR code call to action perfectly matches current consumer behaviour. Nearly 90% of viewers watch TV with a second device in hand, so they are ready and able to scan the code that appears on the TV screen at any time.
Measurability. With a QR code, traditional channels like TV can gain insights into consumer reactions - much like they do online. Marketers can measure the success of a campaign based on the number of scans, length of engagement, and subsequent consumer actions such as form completion or purchase transactions.
QR code integration can reduce operational expenses. Earlier direct-response TV ads typically asked viewers to call a specific phone line to order merchandise. And although this approach was popular some twenty years ago, a number of brands (especially those targeting older audiences) still use it today. However, it requires the brand to maintain a call center, which comes with a relatively high cost. With a QR code, response becomes more efficient, digital and cost-effective.

Although the QR code has clear potential, the shift in consumer behaviour means that TV advertisers are in uncharted territory. Lack of this information can lead to brands not using the full potential of QR codes, or possibly using QR codes to the detriment of their campaigns.

In the absence of best practices, Marketing Architects conducted research to understand how consumers perceive codes in TV ads, what type of people scan the code most often, what the optimal placement of the code is in the ad, and what users expect after scanning the code. What results did the survey lead to? The three most important facts were around response, trust and time.

QR codes outperform traditional response methods


Improving ad response is especially important for performance marketing. This is especially relevant for marketers who focus on performance on mass reach channels such as TV.

QR codes are an easy and non-committal way for viewers to respond to advertising. And, of course, it's more engaging than the phone line calls of yore. But is there convincing evidence that QR codes actually increase response rates on TV? all indications are that they do. According to the results of tests conducted in the market, QR codes have repeatedly contributed to improved TV response rates.

However, it is important to note that not all responses will come directly from scanning a QR code. While most viewers will scan the code, some will choose to search the brand's website manually instead of scanning it. Brands should therefore take a holistic approach to evaluating overall business performance, using multiple measurement models. If they only look at QR scanning, they risk underestimating the impact of TV.

Consumers trust QR codes if they trust the brand


As more and more brands incorporate QR codes into their TV ads, it's important to understand how viewers perceive the technology. And to do this, we ran a series of tests with Userlytics, a platform used to test users remotely.

The first study consisted of 15 separate one-hour interviews in a moderated setting. Two-thirds of the respondents were male, one-third female. The average age of the participants was 40 years old. Subsequent studies were unmoderated and focused on finding out how 'average' and 'unsophisticated' users feel about QR codes on television. A further 50 users across a wide demographic range were involved. The expected resistance to code scanning due to concerns about online security and privacy was not borne out. Respondents had a generally positive view of QR codes, stating that they used them to save time or to access important information in their daily lives. However, they noted that trust was needed to scan the code in the first place.

The two main factors influencing how trustworthy a QR code is include the medium through which the code is shared and the brand that shares the code.

Television is one of the most trusted marketing channels, which is why most people feel safe scanning QR codes from television. 67% of participants said they will engage with a QR code displayed during a commercial if it matches their interests. In contrast, respondents expressed hesitancy about scanning QR codes within Facebook ads, mainly due to a lack of trust in Facebook's verification procedures.

In addition to the channel, the trustworthiness of a QR code can be significantly increased if the user already knows and trusts the brand being promoted. Thus, a brand with greater familiarity or a more positive perception is likely to benefit more from the use of a QR code than an unknown brand.

Although the overall results are positive, not all respondents are enthusiastic about QR codes. For example, consumers aged 65 were more likely to express distrust of QR codes. Only 31% of this age group use QR codes, and those who scan codes are more likely than other age groups to use QR code reading apps. And while 60% of users under 60 say they like the convenience of scanning a QR code in a TV ad, only 30% of users aged 60 say the same. This lack of familiarity with QR technology underlines the importance of intuitive design and clear instructions in advertising.

QR code in TV advertising and engagement


Time matters. How long a QR code stays on the TV screen can significantly impact its success. Research on viewer response rates and QR code viewing behaviour in 15, 30 and 60-second ads suggests that it is essential that a spot with a QR code call to action lasts at least 30 seconds. Such a long ad spot will provide viewers with:

Time to notice: in a spot that is too short, the viewer may not have enough time to even notice the QR code on the screen.
Time to think. Viewers may need a moment to think about whether or not to engage with the ad. Longer time can increase response rates.
Time to scan. You need to consider that scanning the QR code requires the viewer to open the camera app and hold it over the code. If the QR code appears only briefly at the very end of a 15-second ad, viewers may feel pressured trying to scan it before the ad ends.
Flexibility. A 30-second ad allows you to present both a brand message and a call to action with a QR code. The QR code doesn't necessarily dominate the entire ad.
Higher memorability. Longer TV ads typically have higher memorability (both ad and brand) than shorter spots.

Fifteen-second ads often don't give viewers enough time to process the ad's plot, understand the call to action, decide whether they want to view the ad, and then actually view it. Including a QR code in shorter spots can actually reduce response rates.

Conversion matters as much as response


Consumer response is only one half of success. If response is to have an impact on the bottom line, it must translate into sales. That's why it's extremely important for a brand to meet consumer expectations after scanning a QR code.

According to the survey:

67% of users are likely or very likely to scan a QR code to learn more about a product or brand.
55% of users are very likely or extremely likely to scan a QR code and make a purchase.
Those who have scanned a QR code on TV in the past expected the code to give them access to coupons or a discount, send them to a brand's website, or give them information about the product.

In some cases, participants acknowledged that a contact generation form might make sense, such as for scheduling an appointment or requesting a quote, but anything more lengthy than entering basic contact information was met with resistance.

Advertisers can also take a proactive approach and set user expectations before scanning the code. For example, a voice comment of "Learn more after scanning" can increase response rates and help users understand that scanning makes sense.

Why viewers scan a QR code


The chart below illustrates the % of respondents who are likely or very likely to scan a QR code for a specific reason.

Adding a QR code to an ad to increase response is easy. However, incorporating it in a way that allows you to get the best response is a bit more complicated. The placement of the QR code in the ad determines how accessible the code will be to scan and how natural it will appear in the spot. This, in turn, has an impact on viewer engagement. Ads that use 27 seconds to showcase their offer and then awkwardly switch to a QR code for the remaining three seconds can't work.

The QR code needs to be shown for at least 30 seconds and provide instructions to scan the code on screen and in the voiceover of the spot. It's important that users know what to expect once scanned. It is equally important to use only one code per creative. Multiple codes will split the response and cause confusion for users because they won't know which code to scan. This will then make it even harder for advertisers to match.

The best option of all is integration. A QR code that is seamlessly integrated into the ad's story - and thus becomes an integral part of it - shows significantly higher engagement compared to QR codes that are sort of tacked onto the end of the ad without any strategic intent.

In 2023, a year after Coinbase's famous ad, at least 10 brands used QR codes in their ads aired during the Super Bowl.
Web3 startup Limit Break took a cue from Coinbase and displayed a single QR code for a full 30 seconds. But instead of leading users to download the game (which users inferred from the spot), it entered them into a raffle for NFT assets, severely confusing users. The Mexican company Avocados incorporated the QR code into the plot of its spot, but the code only appeared on screen for a few moments, making it more of an "Easter egg" for wary viewers than a real mechanism for ensuring response. Other brands simply added the QR code as a call to action at the end, which is also not an optimal approach.

The potential of QR codes for TV is clear. They offer an improvement over traditional response methods, encourage higher engagement rates and provide advertisers with detailed insight into campaign performance. Consumers who have scanned QR codes on TV report that their customer experience has improved.

QR codes are a tool that bridges the gap between the audience and the brand, enabling a direct, measurable and interactive marketing experience. But many advertisers still don't know how to use them properly.

QR codes on TV require strategic implementation - factors such as brand trust, length of the ad, placement of the QR code within the ad and alignment with user expectations can determine the success of a campaign. And when a brand invests all the time, money and resources it takes to plan and develop something as important as a Super Bowl commercial, it's definitely worth taking the time to optimize every detail.

After all, using a QR code in a TV commercial isn't just about adopting a new tool. It needs to evolve with changing consumer behavior and technological advancements. Already, artificial intelligence can create functional QR codes that are highly customized and embedded into unique works of art. Measurement capabilities related to QR codes continue to improve. Buyable streaming and TV ads using QR codes are gaining popularity among younger viewers who are less likely to engage with TV ads. And every time a person scans a QR code on TV for the first time, the likelihood that they will scan it again in the future increases.

It's time for marketers to optimize the integration of QR codes into TV. Because the future is upon us where the TV screen is not just a window to new worlds, but a unique portal for dynamic brand interaction.

Source: Marketing Architects
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