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Mobile Advertising and 2-D
Barcodes
Entertainment or Essential?




Diane Strahan
Vice President
Registry and Digital Content Services
Power of Mobile as a Channel
Barcodes: Easy to Use, Relevant, Flexible, Dynamic, Measureable
Mobile Barcodes are printed symbols that link consumers with interactive content:

Information
     » Access to critical information is quick and easy
     » Provides relevant information when and where you need it most
Marketing/advertising
     » Transforms traditional mediums into interactive digital media – a powerful new media form where print, mobile and web converge
     » Dramatically broadens the scope of mobile marketing opportunity
     » Leverages unmeasured media (packaging, direct mail, in-store display, etc.) that add to the potential ubiquity of the medium
Entertainment
     » Instant access to movie trailers, music, book excerpts, associated meta data
     » Drive awareness & excitement for new entertainment releases, introductions/upsell for associated licensed content
Commerce/Retail
     » Shortens sales cycles – influences buying decisions in and out of store
     » Supports partner marketing, marketing coop and upsell opportunities through product tie ins
Enterprise/Supply Chain Logistics
     » Increases supply chain efficiency
     » One code - Link marketing, advertising and supply chain where appropriate




 2
                                                      © Neustar Inc. / Proprietary and Confidential
Barcodes - Here, There, Everywhere




3
               © Neustar Inc. / Proprietary and Confidential
Mobile Barcodes – The Time is Now
What it is                                                       Why care
• The ability to scan an object with a camera                     Operator
  phone and experience                                            • An opportunity for revenue enhancement
                                                                    (ie advertising, meta data, new services)
    »   Deep link content
    »   Pre Populated SMS                                         • Drives data usage and customer satisfaction –
                                                                    easier method; opt in
    »   Calendar Event
    »   Pre populated phone call                                  • Provides key insights into subscribers’ interests for
                                                                    digital content and additional advertising leverage.
    »   Other phone invocations
                                                                  Brand/media
• Already big in Japan, and growing
                                                                  •   Establishes relationships with consumers
  worldwide
                                                                  •   Accurately measures campaign performance near
• Satisfying and engaging user experience                             real-time
                                                                  •   Influences purchase decisions

                              Advertisers Want It. Retailers Need It.
                                   Operators Can Enhance It.
4
                                     © Neustar Inc. / Proprietary and Confidential
Why Barcodes Deliver Value
• Competitive against other direct
  response media
   » Average cost per lead is $.60.
     Barcodes can come in at half that
     price.
   » Comparable to Google Ad-word:
     $.69 (2008)
• Converts offline audience to online
  relationships – adds measurement




5
                              © Neustar Inc. / Proprietary and Confidential
How Brands/Agencies/Advertisers Profit
As Mobile Channel Evolves, Advertisers Personalize To Drive Customer Loyalties

                                                                                       Mobility has the potential to improve
                                                       Mobile
                                                                                       advertiser reach & ROI with targeted
                                                                                      and personalized campaigns, reducing
                                                                                       time between customer “awareness”
                                                                                                     and “sale”

                                       Internet
       Value of
                                                                                  Loyalty         Ease of address book/community tie ins
      Targeted                                                                                    promote viral return for brand
      Media to
    Advertisers                                                                              Ease of payment and POS tie ins for
                                                                             Action          Prospect to takes action on the offer
                                  TV
                                                                                         Barcodes are worth more
                                                                                         becauseconsumers enter the hierarchy here
                                                                         Desire
                                                                                         Enhance desire by tuned content, more
                          Radio                                                          qualified offer with Metadata

                                                                 Interest            Increase interest with user simplicity,
                                                                                     immediacy & ease
                  Print
                                                           Awareness              Grab attention with greater context/relevancy



                                          Evolution of Media & Marketing Value Chain
6
                                                  © Neustar Inc. / Proprietary and Confidential
Interoperability is Essential
• Most campaigns rely on one proprietary                 • Importantly: Interoperability is critical
  symbology, one campaign resolution                         »   Leverage each players’ investment
  company and have no mass or scale                          »   Supplies broad reach for brands and
  »   The result: Industry fragmentation.                        advertisers
                                                             »   Provides safety and security of large
  »   Competing vendors and technologies                         numbers
      resulting in a market unable to sustain
                                                                  − Standardized systems and competitive
      unique point solutions.                                       suppliers
                                                                  − Clearinghouse provides secured gateway
• Brands who buy advertising demand:
  »   Reach
                                                             »   Provides the critical mass required to build
  »   Targeting                                                  and sustain healthy ecosystem
                                                                  − Peering and point solutions don’t address
  »   Measurement and
                                                                  − Competition, innovation and scale matter
  »   Competitive ROI for their spend


  7
                                     © Neustar Inc. / Proprietary and Confidential
Neustar Supports Players With Different Needs
        Large MNOs
                                              Registry
                                                                 Small MVNOs



                                                                         Gateway      Linking
          Content                 Neustar                                          players and
                                                                                    systems to
                                                                                      provide
                                                                                       reach
      Campaign Manager           Clearinghouse                                     and create a
                                                                                   marketplace
                                                                                     exchange

       Clearinghouse/
          Registry
           Gateway
                             Campaign Manager,                Campaign Manager,
                                 Publisher                        Agency


                         Mobile Application Providers
 8
                             © Neustar Inc. / Proprietary and Confidential
The User Experience – How it Works




    1.   A code is scanned and sent through a local gateway to the designated clearinghouse.

    2.    The CCH does a registry lookup then queries the Campaign Manager for content

    3.    The URI is sent back to the handset which invokes it, commonly retrieving some remote content

9
                                             © Neustar Inc. / Proprietary and Confidential
Visa “Check Your Balance” Contest




10
               © Neustar Inc. / Proprietary and Confidential
Get Event Updates Delivered to Your Phone




11
               © Neustar Inc. / Proprietary and Confidential
Barcodes to Download Show Content




                                                      Vide
                                                      o




12
              © Neustar Inc. / Proprietary and Confidential
NeoMedia “Scan to Give” Campaign




13
              © Neustar Inc. / Proprietary and Confidential
Campaign Manager Partners
               Company                             Contact

 Mobile Discovery                 David Miller, CEO
                                  david.miller@mobilediscovery.com
 http://www.mobilediscovery.com
                                  (703) 929-3597


 NeoMedia                         Dean Wood, VP of BD
                                  dwood@neom.com
 http://www.neom.com
                                  +447798 853228


 3G Vision                        Maury Margol, Director, U.S. BD
                                  maury.margol@3gvision.com
 http://www.i-nigma.com
                                  (770) 289-1769


 Mobile Data Systems              Joe Spiteri, President & CEO
                                  jspiteri@invisionsoft.com
 http://www.mobiledatasys.com
                                  (630) 360-3400




14
                                    © Neustar Inc. / Proprietary and Confidential
Players and roles
• Brands- pay money for campaigns and fund                     • Media Company – Publisher of print, video, or
  everything - Control system success. May                       electronic content. Includes magazines, outdoor,
  purchase names and codes directly from Registry,               television, Internet, etc.
  but require CM to resolve.


                                                               • Advertising Agency – Acts to coordinate message,
• Campaign Manager (CM)- resolves codes and
                                                                 placement, and content of advertising, often in
  can develop and run mobile campaigns on behalf
                                                                 coordination with media and CMs
  of brands


• Mobile Network Operators (MNOs)– Deploy and                  • Code Reader – Software on handsets that
  support reader proliferation so brands can                     recognizes barcode symbols and sends traffic to the
  advertise to a sufficiently large audience.                    clearinghouse. Also receives response from CM
  Operators can contract with CMs for a share of                 (through clearinghouse) and launches device
  advertising revenues.                                          functions. May also be CM.


• Clearinghouse- Routes traffic from MNO                       • Registry– Reference database documenting
  Subscribers to CMs and back                                    relationship between CMs and the codes they
                                                                 publish.

 15
                                        © Neustar Inc. / Proprietary and Confidential
Code Resolution Pilot Ecosystem




16
               © Neustar Inc. / Proprietary and Confidential
An Invitation to Participate
• Learn how your company can participate in and gain from the oncoming
  mobile advertising market
• Test multiple business models and entry strategies to determine best
  approach and sequencing
• Low risk environment
• Industry Supported Initiative
• Standards Based – Interoperable system



                Contact barcodes@neustar.biz for more details


17
                            © Neustar Inc. / Proprietary and Confidential

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Mobile Advertising and 2D Barcodes: Entertainment or Essential?

  • 1. Mobile Advertising and 2-D Barcodes Entertainment or Essential? Diane Strahan Vice President Registry and Digital Content Services
  • 2. Power of Mobile as a Channel Barcodes: Easy to Use, Relevant, Flexible, Dynamic, Measureable Mobile Barcodes are printed symbols that link consumers with interactive content: Information » Access to critical information is quick and easy » Provides relevant information when and where you need it most Marketing/advertising » Transforms traditional mediums into interactive digital media – a powerful new media form where print, mobile and web converge » Dramatically broadens the scope of mobile marketing opportunity » Leverages unmeasured media (packaging, direct mail, in-store display, etc.) that add to the potential ubiquity of the medium Entertainment » Instant access to movie trailers, music, book excerpts, associated meta data » Drive awareness & excitement for new entertainment releases, introductions/upsell for associated licensed content Commerce/Retail » Shortens sales cycles – influences buying decisions in and out of store » Supports partner marketing, marketing coop and upsell opportunities through product tie ins Enterprise/Supply Chain Logistics » Increases supply chain efficiency » One code - Link marketing, advertising and supply chain where appropriate 2 © Neustar Inc. / Proprietary and Confidential
  • 3. Barcodes - Here, There, Everywhere 3 © Neustar Inc. / Proprietary and Confidential
  • 4. Mobile Barcodes – The Time is Now What it is Why care • The ability to scan an object with a camera Operator phone and experience • An opportunity for revenue enhancement (ie advertising, meta data, new services) » Deep link content » Pre Populated SMS • Drives data usage and customer satisfaction – easier method; opt in » Calendar Event » Pre populated phone call • Provides key insights into subscribers’ interests for digital content and additional advertising leverage. » Other phone invocations Brand/media • Already big in Japan, and growing • Establishes relationships with consumers worldwide • Accurately measures campaign performance near • Satisfying and engaging user experience real-time • Influences purchase decisions Advertisers Want It. Retailers Need It. Operators Can Enhance It. 4 © Neustar Inc. / Proprietary and Confidential
  • 5. Why Barcodes Deliver Value • Competitive against other direct response media » Average cost per lead is $.60. Barcodes can come in at half that price. » Comparable to Google Ad-word: $.69 (2008) • Converts offline audience to online relationships – adds measurement 5 © Neustar Inc. / Proprietary and Confidential
  • 6. How Brands/Agencies/Advertisers Profit As Mobile Channel Evolves, Advertisers Personalize To Drive Customer Loyalties Mobility has the potential to improve Mobile advertiser reach & ROI with targeted and personalized campaigns, reducing time between customer “awareness” and “sale” Internet Value of Loyalty Ease of address book/community tie ins Targeted promote viral return for brand Media to Advertisers Ease of payment and POS tie ins for Action Prospect to takes action on the offer TV Barcodes are worth more becauseconsumers enter the hierarchy here Desire Enhance desire by tuned content, more Radio qualified offer with Metadata Interest Increase interest with user simplicity, immediacy & ease Print Awareness Grab attention with greater context/relevancy Evolution of Media & Marketing Value Chain 6 © Neustar Inc. / Proprietary and Confidential
  • 7. Interoperability is Essential • Most campaigns rely on one proprietary • Importantly: Interoperability is critical symbology, one campaign resolution » Leverage each players’ investment company and have no mass or scale » Supplies broad reach for brands and » The result: Industry fragmentation. advertisers » Provides safety and security of large » Competing vendors and technologies numbers resulting in a market unable to sustain − Standardized systems and competitive unique point solutions. suppliers − Clearinghouse provides secured gateway • Brands who buy advertising demand: » Reach » Provides the critical mass required to build » Targeting and sustain healthy ecosystem − Peering and point solutions don’t address » Measurement and − Competition, innovation and scale matter » Competitive ROI for their spend 7 © Neustar Inc. / Proprietary and Confidential
  • 8. Neustar Supports Players With Different Needs Large MNOs Registry Small MVNOs Gateway Linking Content Neustar players and systems to provide reach Campaign Manager Clearinghouse and create a marketplace exchange Clearinghouse/ Registry Gateway Campaign Manager, Campaign Manager, Publisher Agency Mobile Application Providers 8 © Neustar Inc. / Proprietary and Confidential
  • 9. The User Experience – How it Works 1. A code is scanned and sent through a local gateway to the designated clearinghouse. 2. The CCH does a registry lookup then queries the Campaign Manager for content 3. The URI is sent back to the handset which invokes it, commonly retrieving some remote content 9 © Neustar Inc. / Proprietary and Confidential
  • 10. Visa “Check Your Balance” Contest 10 © Neustar Inc. / Proprietary and Confidential
  • 11. Get Event Updates Delivered to Your Phone 11 © Neustar Inc. / Proprietary and Confidential
  • 12. Barcodes to Download Show Content Vide o 12 © Neustar Inc. / Proprietary and Confidential
  • 13. NeoMedia “Scan to Give” Campaign 13 © Neustar Inc. / Proprietary and Confidential
  • 14. Campaign Manager Partners Company Contact Mobile Discovery David Miller, CEO david.miller@mobilediscovery.com http://www.mobilediscovery.com (703) 929-3597 NeoMedia Dean Wood, VP of BD dwood@neom.com http://www.neom.com +447798 853228 3G Vision Maury Margol, Director, U.S. BD maury.margol@3gvision.com http://www.i-nigma.com (770) 289-1769 Mobile Data Systems Joe Spiteri, President & CEO jspiteri@invisionsoft.com http://www.mobiledatasys.com (630) 360-3400 14 © Neustar Inc. / Proprietary and Confidential
  • 15. Players and roles • Brands- pay money for campaigns and fund • Media Company – Publisher of print, video, or everything - Control system success. May electronic content. Includes magazines, outdoor, purchase names and codes directly from Registry, television, Internet, etc. but require CM to resolve. • Advertising Agency – Acts to coordinate message, • Campaign Manager (CM)- resolves codes and placement, and content of advertising, often in can develop and run mobile campaigns on behalf coordination with media and CMs of brands • Mobile Network Operators (MNOs)– Deploy and • Code Reader – Software on handsets that support reader proliferation so brands can recognizes barcode symbols and sends traffic to the advertise to a sufficiently large audience. clearinghouse. Also receives response from CM Operators can contract with CMs for a share of (through clearinghouse) and launches device advertising revenues. functions. May also be CM. • Clearinghouse- Routes traffic from MNO • Registry– Reference database documenting Subscribers to CMs and back relationship between CMs and the codes they publish. 15 © Neustar Inc. / Proprietary and Confidential
  • 16. Code Resolution Pilot Ecosystem 16 © Neustar Inc. / Proprietary and Confidential
  • 17. An Invitation to Participate • Learn how your company can participate in and gain from the oncoming mobile advertising market • Test multiple business models and entry strategies to determine best approach and sequencing • Low risk environment • Industry Supported Initiative • Standards Based – Interoperable system Contact barcodes@neustar.biz for more details 17 © Neustar Inc. / Proprietary and Confidential