AT&T Extends Its Mobile Marketing Solutions to Include Mobile Barcodes

Event Summary

August 2, 2010 -- AT&T launched the AT&T Code Scanner application for several of its smartphones, including Android and BlackBerry handsets. The application allows users to scan 2D (QR and datamatrix) and 1D (UPC and EAN) barcodes to get more information about the materials scanned. The application will be compatible with magazines, retail items, and online codes and limited to marketing and promotional materials. The app is a free. AT&T also announced AT&T Create-a-Code, offering users a chance to make their own mobile barcode, which can be used to direct scanners to a v-card, Facebook account, blog, or Web site. AT&T will also offer businesses access to its Code Management Platform, encouraging them to create campaigns using mobile barcodes.

Quick Take

Analytical Summary

• Current Perspective: Positive on AT&T’s launch of its new barcode scanner applications for consumers and businesses, because it indicates the carrier’s intention to experiment with new and upcoming mobile marketing services and, most importantly, at low cost thresholds to its users. The service is also compatible on most smartphones (including Android and BlackBerry devices), increasing its overall reach. However, presently, the app does not come preloaded on AT&T’s devices, compelling users to make the effort to locate and download it on their phones. Also, the lack of a merchant partner list makes it tough to gauge the app’s success, especially considering the fact that, for most users, it is still a fairly new experience that might require a little getting used to. If the product or service that is being advertised is not enticing enough, they might not take the trouble to scan the code, reducing the marketer’s ROI in the process.

• Vendor Importance: High to AT&T, because although mobile barcode scanning apps are not new, it signals that AT&T is willing to open its doors to an upcoming promotional medium and offer the experience to its users at a low cost threshold. Moreover, its Create-a-Code app will up the ante of interested users and ensure that its they have hands-on experience with the new technology, which can help with its traction. Looking ahead, when the momentum picks up and more advertisers begin to get involved, it will open up a tentative revenue opportunity for AT&T to embark upon an agreement with advertisers and share the proceeds on products purchased.

• Market Impact: Moderate on the wireless services market, because this is not the first instance of a commercially rolled-out mobile barcode platform; players such as ScanLife and ScanBuy have been around for some time now. Although mobile bar coding solutions seem good on paper, as they are less intrusive and provide consumers with details in just a single click (or scan), they have yet to achieve mass appeal. The technology is currently plagued with problems, such as the lack of user experience with this technology and limited merchant partnerships. However, with the rise in related services such as mobile payments and mobile advertising in general, mobile bar coding solutions will eventually become an area of importance to carriers. The performance of initial ventures (such as AT&T Code Scanner and ScanLife) will have a strong bearing on future mobile barcode platforms.

CLIENTS ONLY

Competitive Positives and Concerns

Response & Recommendations

Buyer Actions

Analytical Perspective

| Client access - Full report in Consumer Services U.S. | More information

Top