This summer, I dedicated my columns to exploring the disruptive effects QR codes will have on the core of search marketing – from SEO URL strategy, to the very notion of link building. Today, I’ll look at how QR disrupts the SEM game, and may force you to adopt a new strategy.

It’s In The Mail

If you’re a US resident, you’ve surely noticed the spike this summer in direct mail pieces featuring 2D barcodes (typically QR) – even curiously from firms that are typically late adopters, like non-profits. This was due to a brilliant (perhaps desperate) move by the US Postal Service to remain relevant in a mobile era, by positioning direct mail as a method of integrated mobile marketing.

So they offered to cut postage fees by 3% for any direct mailer that included a QR on promotional mailings sent during July and August 2011. (Depending when you read this, you may have a few days to benefit.)

At first, 3% may not seem like a lot. For large mailers, like catalogers, it adds up to tens of thousands of dollars in savings per campaign. For smaller mailers, it’s worth much less. But the cost of participating is so low, there was clear incentive to take advantage.

The QR code is free. So is the incremental ink. The only real cost is the change in printing process. (Interestingly: This helps explain why many of the summer QR codes link to desktop sites, not mobile sites. It may be a sub-optimal user experience, but the brand saved 3% in postage fees, and presumably gained data to quantify further mobile investment, so it’s a win for mobile.)

I think this was a defining moment in US QR adoption. The Postal Service’s offer may be over, but there is actually no incentive for any of these brands to now pull their QR codes from future mailings (it would just cost more in process-change).

Maybe USPS will offer a similar deal in the future, but even if they do not, the “bar” has been set. US consumers are now beginning to expect QR “mobile links” on their direct mail.

QR As Navigation

Just what does this have to do with your PPC program?

For years, direct marketers like catalogers and multichannel merchants, have seen correlation between sending a catalog, and the resulting increase in “search-as-navigation” brand queries. That makes sense: the catalog sparks interest.

But there are fewer keystrokes required to type a brand name into a search box than to type the brand URL directly. Search engines provided, and profited from, this shortcut.

Research over the last few years has shown how “search-as-navigation” brand queries make up more than 50% of keyword traffic volume for most large brands, often constituting the bulk of PPC spend.

QR makes that information retrieval process antiquated and laborious.

Why open your desktop browser, type a brand query, and have to click a link from the ads or SERPs? Instead, you get there directly in one click, old-timer.

Just open your QR reader app and scan. If you’ve got your smartphone handy (who doesn’t), it is certainly easier to scan than type a search query (or a URL for that matter) on your smartphone.

This increased simplicity offers at least a 75% reduction in steps, and nearly 100% time-savings versus typing a desktop query and waiting for websites to load. The point is this: Just like “search-as-navigation” offered a shortcut to typing URLs, “QR-as-navigation” offers an even faster, more efficient, direct route.

When consumers exploit the “QR as navigation” shortcut, it directly reduces the number of “search-as-navigation” brand queries they conduct. It’s a substitute.

By providing this new shortcut, marketers can drive those same users to the site, without the incremental ad cost of brand queries. Interestingly, with QR acting as a navigational shortcut for consumers, it doubles as an advertising shortcut for marketers.

QR As SEM Shortcut

How much of your PPC spend is driven by “search-as-navigation” brand queries? If a 3% postage reduction was enough to motivate marketers to adopt QR integration, imagine the cost savings of weaning those users off brand-query ads.

In essence, “QR-as-navigation” allows brands to take back what was theirs’ all along: It was only because search engines offered consumers a typing shortcut that brands eventually had to advertise on brand queries. Now with QR codes, brands can reclaim that traffic and greatly reduce ad costs.

But there are other inefficiencies to address. If your multichannel marketing induces head-term query traffic, the “QR as navigation” principle could reduce those expensive acquisition costs.

Perhaps by placing a QR in the catalog along-side product categories with high search demand, search-inclined consumers will have to decide whether to take the QR shortcut, or risk taking the longer “search” route.

Similarly, less expensive tail queries, like product names or SKU numbers, could be rerouted by placing QR next to each product within a catalog.

There is great incentive to adopt a QR integrated SEM strategy:

  • By year-end (four months away), there’s a 50% chance your US consumer will own a smartphone. (75% chance by this time next year.)
  • QR reading apps are and will be freely available for him/her to download.
  • QR codes effectively eliminate the time and effort required for him/her to access information.

By strategically integrating QR codes, you not only can reduce demand for “search-as-navigation” queries, but in process reduce your SEM spend, improve your SEM yield, and lift margins.

Of course, since there are no real cost barriers to QR integration, all competitors have this same advantage. And consumers will ultimately choose to do business with the brands that make it easiest.

Will QR eliminate search activity? No. Mobile users are still search-dominant.

But you have to ask why: The fact is, we’re search-dominant because the best we have been able to do, in most situations, is to search.

Every multichannel brand should be feverishly reconsidering their SEM strategy because choosing QR integration can make one of your biggest costs (“search-as-navigation” queries) an inefficient spend. There’s a big pile of free money there – your money – to be reclaimed.

QR is disruptive to SEM because it lets you as a brand compete with, and trump, the best shortcut consumers have had available until now: search engines.

Scan for the mobile-friendly version of this article:

Opinions expressed in the article are those of the guest author and not necessarily Search Engine Land.

Related Topics: Channel: SEO | Mobile Search | Search Marketing: Mobile | SEO: Mobile Search

Sponsored


About The Author: is founder and president of Pure Oxygen Labs, a consulting and mobile technology firm. Brian's been in search marketing for over 10 years, most recently leading SEO firm Netconcepts through to acquisition by Covario. Follow Brian on Twitter @brianklais.

Connect with the author via: Email | Twitter | Google+ | LinkedIn



SearchCap:

Get all the top search stories emailed daily!  

Share

Other ways to share:

Read before commenting! We welcome constructive comments and allow any that meet our common sense criteria. This means being respectful and polite to others. It means providing helpful information that contributes to a story or discussion. It means leaving links only that substantially add further to a discussion. Comments using foul language, being disrespectful to others or otherwise violating what we believe are common sense standards of discussion will be deleted. Comments may also be removed if they are posted from anonymous accounts. You can read more about our comments policy here.
  • http://www.jaankanellis.com Jaan

    “Why open your desktop browser, type a brand query, and have to click a link from the ads or SERPs?”

    Sure on the surface this makes sense for usual QR code scanners, but if your a first time users adapting is much more difficult. You have to have a phone that can do this, go find a app that can do this, actual scan the QR code and then get to the site.

    A recent study said that over half of the QR scans were done in the home, why not just browse to the site unless you were getting a coupon through the QR code.

  • http://www.arnauddestree.be Arnaud Destrée

    A new brand associated with a new website needs traffic from its brand search terms. It helps to build some kind of “confidence” from Google’s point of vue.

    I would not recommend extensively use of QR codes when launching a new brand/website.

  • http://www.rimmkaufman.com George Michie

    Brian, this is an interesting notion, but seems to me unlikely to be material. Your catalog example makes sense to me, but I’d venture to say that the majority of brand search even for a cataloger isn’t happening while the customer has a catalog in hand. The power of search marketing is that it catches people in the moment of interest. The odds that someone sees your QR code right when they’re about to go shopping for something is not zero, but I’d be surprised if it moved the needle much. I’ve been wrong before, though!

  • http://www.pureoxygenmobile.com Brian Klais

    George – Thanks for the comment. I think that helps frame the bottom-line principle: Smartphone consumers will always seek the shortcut: scanning always beats typing. But if scanning isn’t an option, typing-search always beats typing-URL, etc etc. (Rock, paper, scissors.)

    QR isn’t always a substitute for brand search, but in some situations (like catalog example) it will be. It’s up to the brand’s marketing imagination to deploy QR mobile links for ad cost savings (not unlike the objectives of SEO, come to think of it). That’s what makes it disruptive. The marginal cost is insignificant, the marginal gain potentially significant, and the alternative self-fulfilling.
    Hence, experiment! If it’s a real shortcut, the consumer will find it – and love it.

  • http://PureOxygenLabs.com Brian Klais

    As an addendum: US Postal Service reported yesterday ONE THIRD of all Standard Mail the past two months contained a QR code, calling the program a success:

    http://multichannelmerchant.com/printchannel/postal/usps-qr-code-promotion-0831jt1/index.html

  • Eric Hitchman

    I’d love to know how many people scanned this article…………….. after reading it? :)

 

Get Our News, Everywhere!

Daily Email:

Follow Search Engine Land on Twitter @sengineland Like Search Engine Land on Facebook Follow Search Engine Land on Google+ Get the Search Engine Land Feed Connect with Search Engine Land on LinkedIn Check out our Tumblr! See us on Pinterest

 
 

Click to watch SMX conference video

Join us at one of our SMX or MarTech events:

United States

Europe

Australia & China

Learn more about: SMX | MarTech


Free Daily Search News Recap!

SearchCap is a once-per-day newsletter update - sign up below and get the news delivered to you!

 


 

Search Engine Land Periodic Table of SEO Success Factors

Get Your Copy
Read The Full SEO Guide