> Opinion Paper

Mobile Tagging
New Business Opportunities
through 2D-Barcodes

2008 / 10

www.detecon.com
 Mobile Tagging

Table of Contents
1 Executive Summary ............................................................................................ 3
2 Mobile Tagging Today......................................................................................... 4
2.1 Mobile Tagging Technology ........................................................................ 4
2.2 Mobile Tagging around the World ............................................................... 6
2.3 Mobile Tagging Ecosystem (Players).......................................................... 8
3 Future Mobile-Tagging Business Models .......................................................... 12
3.1 Pull tagging................................................................................................ 12
3.2 Push tagging ............................................................................................. 14
4 Strategic Options / What should Companies do?.............................................. 15
5 Reading on........................................................................................................ 16
6 The Authors....................................................................................................... 17
7 The Company.................................................................................................... 18

Opinion Paper 2 Detecon International GmbH

 Mobile Tagging

1 Executive Summary

Barcodes have become ubiquitous on everything from grocery items to postal parcels.
Traditional 1D-Barcodes can only save a small amount of characters. The more novel 2D-
barcodes can save more information and open up new business models such as mobile
tagging.

Mobile tagging is a simple-to-use-technology and describes the process of scanning,

decoding and reading out the content of a 2D-barcode by using the camera of a mobile
device.

Mobile Tagging

WWW
Decoding

Point to a code Take a picture Decode Link to a

the code website

The mobile phone’s camera is pointed at the code and an installed code reader takes a
picture and decrypts the code. Thus with no additional equipment the mobile phone is turned
into a scanner for 2D-barcodes. Various types of information can be stored in the code, such
as a link to a website, a simple text message or a phone number. With mobile tagging any
medium can be linked directly to the multimedia capability of the mobile web, anytime and
anywhere.
Today, mobile tagging is already part of everyday life and a big success in Japan. It has led
there to a wide variety of new, consumer-oriented applications. In Asia, mobile tags can be
found on everything from products to magazines, food, posters, and advertisements. Mobile
tagging is expected to reach Asian levels in the foreseeable future in Europe and other parts
of the world where it is currently only used in the field of logistics.
The vision behind mobile tagging is the idea of absolute convergence between conventional
and online media. Mobile tagging links static printed information with the internet and
encourages highly interactive behavior of the user.
Consequently, many new promising business models and applications are conceivable and
open new market opportunities for many players, especially for consumer-oriented
companies, advertisers and mobile operators. Particularly mobile advertising can be seen as
the most important driver for the adoption of the technology.
To bring this about, the key players in the mobile tagging ecosystems need to work together.
This paper gives an overview over the relevant topics and an outlook to possible future
scenarios and the resulting new market opportunities for several players.

Opinion Paper 3 Detecon International GmbH

 Mobile Tagging

2 Mobile Tagging Today

Mobile Tagging describes the decoding of 2D-barcodes by using the camera of a mobile
device. With special software, a short message or an internet address can be converted into
a 2D-barcode resembling a crossword puzzle, which is called a "tag". Users of mobile
tagging can scan these codes with their mobile phone’s camera. Software on the phone
decodes the tag and displays a text message or directly connects to a mobile website.

In essence, mobile tagging overcomes the barriers between traditional, non-interactive and
physical media such as product descriptions, print, billboards, catalogues, TV and the
internet. Mobile tagging provides consumer-oriented companies and marketing organizations
with the ability to link their products and services directly to specific web pages on the
(mobile) internet. It is a technology with great potential for these players to reach large
numbers of consumers with new offerings. In the following we will describe and analyze the
corresponding technology and use cases around mobile tagging.

2.1 Mobile Tagging Technology

Mobile tagging offers a simple, virtually zero-cost method to allow user to connect
immediately from a printed symbol to a relevant web-site. It is much simpler and cheaper to
use than comparable connectivity technologies such as RFID and NFC (near field
communications). Mobile tagging involves code-generator, 2D-barcodes and code reader.

Code generator

Code generators generate 2D-barcodes out of a string of characters such as a URL or a text
message. For professional use code generators are part of a sophisticated supply chain or
media solutions. For individual use several free code generators for private consumers are
freely available on the internet, e.g.:
O QR Code and DataMatrix generator by i-nigma1
O QR Code Generator by Kaywa2
O Mobile Barcoder (Firefox plugin that creates QR codes)

With these simple tools anybody is able to create any type of 2D-barcode.

1
http://www.i-nigma.com/personal/Create.asp

2
http://qrcode.kaywa.com/

Opinion Paper 4 Detecon International GmbH

 Mobile Tagging

Mobile tagging codes (2D-barcodes)

2D-barcodes can be considered an extension of the well-known 1D version:

1D-barcodes are one of the most widespread and well-known global identification
applications and can be seen anywhere in the world. We all know them from supermarkets,
where 1D barcodes are normally read by laser-based scanners. For consumer goods they
are used at point-of-sale and throughout the supply chain. 1D-barcodes can contain data up
to ten bytes which is too little to store messages, or internet URLs etc. Instead, they contain
unique identifiers which are associated with certain contents or products.

2D-barcodes are more novel but have already Barcodes (ISO standard)
become commonplace in countries with faster
adoption of more advanced mobile phones and
EAN/UPC (1D)
networks, such as Japan and Korea. Different
Capacity: 8 to 13
types of codes can be found worldwide as there
numeric digits.
is still relatively little standardisation. DataMatrix
Error correction: no
and QR Code are currently emerging as de-
Other: ISO-Standard.
facto standards. In addition there are several
other 2D-barcodes which are used worldwide,
QR-Code (2D)
such as EZcode, BeeTagg, Aztec-Code (used
Capacity: up to 400
at Deutsche Bahn for online-tickets) and
bytes (for typical camera
Shotcode. As seen in other technologies the
phone).
current fragmentation of standards in the market
Error correction: yes
has until know been a barrier to widespread
(up to 30%)
adoption.
Other: Originally developed for
automotive manufacturing.
Fundamentally, there is no difference between
2D-barcodes and 1D-barcodes. Since 2D-
DataMatrix (2D)
barcodes carry information both horizontally and
Capacity: up to 400
vertically, 2D-barcodes are capable of encoding
bytes (for typical camera
about ten times the amount of data in
phones).
approximately the space of a traditional 1D-
Error correction: yes
barcode.
(up to 30%)
2D-barcodes can theoretically save thousands
of bytes. In practice for mobile tagging applications, the amount of data that can be stored is
limited by the resolution of the mobile device cameras. Therefore, the current amount of data
contained in 2D-barcodes is typically restricted to a few hundred bytes of alphanumeric or
binary data. Generally it can be said: the less information is contained in a 2D-barcode, the
easier and more convenient is the decoding. DataMatrix and QR codes include strong error
correction capability to ensure a high first read rate and they provide mature and efficient
image processing and decoding algorithms. It is to be expected that in the future more
flexible codes (colored 3D-codes or even animated 4D-codes) will be developed which
contain much more data than current codes. Each of these codes has a different “look and
feel” for the user.

Opinion Paper 5 Detecon International GmbH

 Mobile Tagging

Code reader

To decode a 2D-barcode, a special application needs to be installed on the user’s device.

This software is called code reader. Code readers for the most of the mobile devices of all
manufacturers are available. They are either pre-installed or can be downloaded as
applications. Most can read different types of barcodes. Most common providers for 2D-
barcode readers are Activeprint, Kaywa and i-nigma. Google is also developing a code
reader called ZXing ("Zebra Crossing") within the Open Handset Alliance. ZXing is supposed
to be launched with the new Android platform for mobile devices.

When a user decodes a 2D-barcode with a code reader the barcode then can be used for:
O Linking to a website/starting a download
O Creating a text-message (email /SMS)
O Dialling a number
O Importing other data as business card information etc.

Current application examples around mobile tagging are discussed in a later chapter.

2.2 Mobile Tagging around the World

Mobile tagging in Europe:

Currently, in Europe 2D-barcodes are only used in the field of logistics. Generally, mobile
tagging is not yet established because of mainly two factors. Firstly, there's the waiting
game: The success of mobile tagging needs the cooperation of multiple players and each is
waiting for the other to make their first move. Secondly, mobile tagging needs a strong base
of camera phones and internet capable mobile devices.

Change is expected soon, though. The mobile internet is becoming more and more popular
in Europe. Mobile operators started to introduce flat-rate mobile internet access on a wide
scale. It is expected that by the end of 2013, one-quarter of mobile phone users will have
fast-internet capable devices. By that time, 38% of mobile subscribers are expected to use
mobile internet services at least once per month.3

As high-quality cameras in mobile devices by now have also become a standard, mobile
tagging is expected to make its breakthrough in Europe soon. Its multiple applications (see
chapters below) have great potential to strongly influence consumer behavior in the areas of
e-commerce, advertisement and social networks. To facilitate the alignment of the players in
the mobile tagging ecosystem the Mobile Codes Consortium (MC2) is working with the Open
Mobile Alliance (OMA) and the GSM Association (GSMA) to establish a European
framework for mobile tagging codes and readers. OMA has recently published a white paper
addressing key aspects of the mobile tagging ecosystem. Both OMA and MC2 promote the
goal to install readers on mobile phones by default.

3
European Mobile Forecast: 2008 to 2013, Forrester, 2008

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 Mobile Tagging

Mobile tagging in Asia:

Mobile Tagging was invented in Asia in 2002. In terms of mobile data services, the Asian
market is much more advanced than European markets. Japan and Korea are the global
centers of mobile data use and subscriber spend twice as much per month on mobile data
as subscribers in Western Europe or North America. Operators have been heavily promoting
mobile data services, including mobile tagging. Nowadays QR codes are found on
everything from business cards to food packages (also on flyers, posters, stickers, web sites,
CDs, vending machines, coffee cups, advertisements etc.) For example, McDonalds in
Japan is using QR codes to allow customers to find out the nutritional content of their
offerings. The addition of QR codes on business cards is also becoming common, greatly
simplifying the task of entering the personal details of a new acquaintance into the address
book of one's mobile phone.

Half of all Japanese handsets, and over 60% of DoCoMo handsets, are now reported to be
QR code enabled. Up to 50 million times a day people scan mobile tags in Japan. So, in
Asia, QR codes have become the door to the mobile internet for the average mobile user.
More than 70% of all Japanese have already used mobile tagging.4 The success of mobile
tagging in Japan was based on precisely the two factors lacking in Europe so far: much more
advanced handsets with strong mobile internet capabilities and a coordinated push by
operators, particularly DoCoMo.

Mobile tagging in North America:

Much like other mobile technology, such as SMS, the US market has been slow to embrace
mobile tagging. Once it does, however, the usage of mobile tagging will probably be similar
as in other parts of the world. In the US, the “Carrier Code Scanning Action Team” (CCSAT)
of the CTIA5 has recently published a white paper endorsing mobile tagging and proposing a
specific architecture. Through its proposal the group wants to stimulate adoption of 2D-
barcodes in the US.

In parallel other US players are fostering the adoption of mobile tagging. Google for instance,
will include an application called ZXing ("Zebra Crossing") in an upcoming release of their
Android platform and will also create a separate Java-based version which can be used on
any mobile device. ZXing is an open source, multiformat 1D/2D code reader. The present
goal of Google is to support decoding of QR codes, Data Matrix, and 1D-barcodes. In
addition, code readers for the iPhone and BlackBerry devices are intended. Google’s
presence in the internet coupled with a possible success of the Android platform could have
big impact on the usage of mobile tagging in the US and other parts of the world.

4
Welt-Kompakt führt den 2D-Code ein, Die Welt Online, 2008
(http://www.welt.de/webwelt/article1344905/WELT_KOMPAKT_fuehrt__den_2D-Code_ein.html)

5
US-based association for the wireless telecommunications industry, representing - amongst others - all leading US
operators

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 Mobile Tagging

Furthermore, just as in Europe, camera-equipped handsets in the US market now have good
enough optics, image resolution and processing capacity to read 2D-barcodes on printed
materials and electronic displays. More and more devices also provide a web browser to
connect to the internet. So the preconditions for the usage of mobile tagging have come into
place.

2.3 Mobile Tagging Ecosystem (Players)

The key players in this new industry are mobile device manufacturers, consumer-oriented
companies, advertisers, mobile operators and - obviously - consumers, which have to adopt
the new opportunities. Each of these players is discussed in the following.

Mobile device manufacturers:

Device manufacturers are in a key position because they have to integrate cameras and
code readers into their products. They also have to design good user interfaces that will
enable easy pick-up of the new applications.

Nokia already provides a preinstalled code reader with its current generation of N-Series and
also provides a website that leads the user through the mobile tagging world.6 Nokia’s code
reader reads QR-Code, DataMatrix, and other types of codes (more codes will follow) thus
side-stepping the standards issue.

Fragmentation of standards, insufficient integration and bad usability inhibits the uptake of
any technology. For example, business models that focus on mobile advertising greatly
benefit from homogeneous device capabilities across models and vendors. Therefore,
mobile device manufacturers should cooperate with other players to improve reach and
scale of the mobile tagging opportunities. As mobile users are generally unwilling to install
applications on their devices themselves, device manufacturers should ensure that code
reader and applications are pre-installed on mobile devices. They should work on assuring
that mobile tagging applications are simple and do not disappoint the user in terms of user-
experience.

Nevertheless, the mobile tagging market in Asia shows that once established in the market,
mobile code readers are a “must have” for every user and for every mobile device. Mobile
device manufacturers should prepare and find ways how to benefit from mobile tagging.

Consumer-oriented companies

Consumer-oriented companies will strongly profit from new forms of direct customer
interaction and advertising based on mobile tagging. Any physical product or product-related
information such as packages, manuals or catalogues can be equipped with a tag. The tag
can then directly lead to a website which will connect the consumer with the manufacturer.
The industry group GS1 is promoting the use of mobile tagging for innovative mobile
commerce and supply chain applications. It has recently published a white paper detailing a
framework for use of mobile tagging for e-commerce applications and a position paper on
codes to use.

6
http://mobilecodes.nokia.com/

Opinion Paper 8 Detecon International GmbH

 Mobile Tagging

By enriching traditional advertising (in, e.g., print media, billboards or TV) with mobile
tagging, measurements of advertising campaigns can be significantly improved. Today the
effectiveness of traditional print advertisements is hardly measurable although they account
for 85% of advertising budget. Mobile tagging offers great opportunities to consumer-
oriented companies as it gives the possibility to measure “click-through rates” (by time of
day, progression through to sale, and even time spent), making paper as measurable as the
internet. Instantly, it can be known which location or medium generated the highest response
and sales. By linking traditional advertising with mobile advertising through mobile tagging
new forms of customer-approaches are possible.

Consumer-oriented companies should thus be strong drivers of mobile tagging, pushing

other players to establish the platform. As consumer-oriented companies bring money, value
and experience with customer interactions to the ecosystem their experiences and
requirements should be considered as valuable inputs by other players.

Advertisers

Marketers and advertisers are a central element in the value chain of mobile tagging. With
the ability to bring to the physical world (e.g. magazines) the full interactivity and
accountability of the internet, mobile tagging will create a powerful tool especially for
advertising companies.

With the appropriate technological infrastructure in place to get data on the context of the
mobile tagging event (e.g. time, location and source), marketers can build up revolutionary
advertising models. If a user scans a mobile tag and then receives detailed product-related
information in response, new forms of very effective target advertising can be created. As the
mobile phone is a very intimate object for most users, target advertising on mobile devices is
potentially better than anything on any other medium and therefore the most promising
business model in the area of mobile tagging. The range of a click-through-rate for target
advertising is 1% to 20%, with the average at 2% to 3%, while the typical rate for internet
advertisements is 0.1%.

Currently, different standards for mobile tagging codes, readers and inconsistent reporting
metrics among operators avoid the acceptance of mobile tagging by advertisers. Therefore,
the biggest mobile operators in the UK are collaborating within the GSMA to build a
consistent set of standards that allows a standardized measurement of mobile advertising
campaigns. This could eliminate advertiser’s concerns about the effectiveness of mobile
advertising.

Mobile operators

Mobile operators around the world have shown varying attitudes towards mobile tagging.
While Asian operators have been early promoters, European and US carriers only in 2008
started looking at the opportunities in a coordinated fashion. As mobile operators are central
to any mobile value chain they are key players to promote market adoption. The different
evolution of the Asian and western markets is a case in point.

However, mobile operators need to find their place in the mobile tagging ecosystem.
Obviously, the mobile industry benefits from increased usage of the internet over mobile
handsets. However, as many interesting mobile tagging applications require nothing more
than a code reader and a web browser on the phone, the mobile tagging market could
conceivably develop without significant involvement of mobile operators. Mobile operators

Opinion Paper 9 Detecon International GmbH

 Mobile Tagging

therefore have proposed that besides connectivity they can bring two key customer-related
assets to mobile tagging: one is trust and security, the other user- and usage-related
(anonymous) demographic and statistical data. This information, enriched with presence and
location awareness, enables them to stimulate market uptake by lowering barriers for
consumers and increasing the value for companies, particularly advertisers, respectively. In
addition, mobile operators can also offer their transactional and fulfillment-related capabilities
to interested parties. The knowledge about the location of a consumer at which time, and the
knowledge about customer’s preferences are in combination with mobile tagging
exceptionally precious to marketers. Mobile tagging allows targeted micro-marketing which is
a revolutionary advertising model. At least the anonymous tracking of when and where a
mobile tag is made can be done without consumer’s permission.

Mobile operator’s strengths

Trust and security: Consumers place great trust in mobile operators on the security of
mobile communications. Mobile tagging in principle opens the door for malicious content
such as viruses on handsets (by, e.g., publishing a tag that directs to an infected web site).
Mobile operators have proposed a security framework based on easily understandable
identifiers and a so-called indirect mode that allows control over the application initiated by
the mobile tag.

User-related data: Mobile operators have access to demographic, geographic and

behavioural data related to the mobile phone user and the usage context including individual
preferences. This information is extremely valuable as enrichment for mobile advertising and
mobile commerce. After establishing a framework that respects all relevant legal and privacy
issues this data can be monetized by mobile operators.

Fulfilment: Rather than purchasing products using a credit card the operator can actually
provide immediate fulfilment for the customer and an advertiser. Should subscribers wish to
buy an advertised product they tagged in a magazine they can do so immediately and simply
be billed later through their phone bill. This is a valuable capability for both subscriber and
advertiser which no other member of the mobile tagging value chain is able to provide.

Consumers

Mobile tagging will probably have big impact on the usage of mobile internet. With mobile
tagging consumers can go beyond a printed page through their phones, where they can
interact, register, explore rich, up-to-date content - and even buy. Consumers have come to
expect a strong service orientation of businesses and quick response time for interactions.
They demand individualized offerings and personalized relationships. Yet, consumers have
also become aware of the pitfalls and dangers of the internet and mobile commerce.
Applications based on mobile tagging therefore have to be non-intrusive and offer real value
to the consumer. Ultimately it’s only the consumers who decide about success or failure of
new applications such as mobile tagging. All other ecosystem players need to interact
constructively to meet or even exceed customer expectations.

Opinion Paper 10 Detecon International GmbH

 Mobile Tagging

Beyond their consumptive rule, users will also play an important role when it comes to
innovative use cases for mobile tagging. The experience shows that consumers are the ones
who invent useful and unforeseen applications whenever new technologies emerge. In
opposite to other technologies (e.g. RFID) mobile tagging use cases can also be invented by
the user as all needed tools (code-generator and decoder) are available without any costs.
So especially in the area of social networking use cases around mobile tagging which are
invented by consumers are conceivable. This could significantly help drive overall adoption.
Other players should make sure that consumers will have the opportunities to participate in
the development of the ecosystem.

Once the barriers discussed so far have been removed, mobile tagging is expected to
establish itself in the market, since a new generation of consumers has forged its buying and
decision-making processes in a mobile and Web 2.0 environment. They are very open to
new technologies and applications and also ready to contribute if they see an overall value
for them.

Opinion Paper 11 Detecon International GmbH

 Mobile Tagging

3 Future Mobile-Tagging Business Models

The range of potential applications for mobile tagging is enormous, and the impact for
brands and on consumers is wide-reaching. Mobile tagging is not restricted to a certain
industry or segment. Conceivable business models vary from mobile advertising, social
networks, mobile ticketing and many others. Generally, it can be distinguished between two
ways how to use 2D-barcodes:
O Pull Tagging - Watch&Click: Barcode that is tagged (“pulled”) by a user wherever
the barcode is seen.
O Push Tagging - Receive&Show: Barcode that is sent (“pushed”) to a user by
SMS/MMS. The barcode works as coupon/ticket.

3.1 Pull tagging

Mobile Advertising

Advertising is one of the main application areas of mobile tagging. 2D-barcodes can be
attached to any type of traditional (“first stage”) advertising campaigns, e.g. printed ads in
magazines, billboards, commercial on TV. The mobile tag gives consumers the possibility to
pull additional up-to-date information (“second stage advertisement”) for any product at the
right time in the right format (e.g. language). This adds interactive capabilities and depth to
traditional campaigns, increasing impact and measurability. Mobile tagging is a way to
answer the proverbial key question of marketing: “which 50% of my advertising budget is
working”. Information that is pulled by consumers during the second stage is more valuable
as it can be personalised and matches a specific interest and context at that time. For
example, during a trip a user tags a barcode on a billboard advertising some local event. He
or she is then immediately directed to a website offering information and directions to that
specific location. In addition, the advertiser can track which billboard generated the user
response and thus might have the best location.

Pull tagging for mobile advertising can be combined with push tagging by sending out
barcodes to be used, e.g. as coupons during the second stage.

Mobile Social Networking: Social networking is the most well-known Web 2.0 technology.
Sites like Facebook with strong existing user populations from the internet are offering
mobile sites that provide a subset of activities for mobile users.

A new Facebook application called “Add to Friends Shirt” creates a shirt that lets people get
in touch with their Facebook profile via a QR code printed to a T-shirt. Many other mobile
tagging application around Web 2.0 social networking sites are conceivable as most leading
social networking sites have allowed developers to access their application programming
interfaces (APIs) and create new ways of using the sites.7 So, consumers are encouraged to
develop new applications for these websites.

7
One of the reasons for Facebook’s success has been the company’s open policy toward third-party developers,
allowing them to access the APIs in order to develop applications for the site. Today there are thousands of
applications available to Facebook members.

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 Mobile Tagging

Business Card Tagging: The details of a client’s card can be represented by a barcode and
read out by a mobile phone to store the contact details on that device without any
inconvenient typing.

Product packaging: At its most basic, 2D-barcodes can provide additional product
information. A consumer scans a barcode on a product or packaging with his mobile phone.
He or she can then retrieve additional information about the product from the internet. This
can be details on usage (online manual) or application hints such as recipes. This
information can even be personalized after a user has registered with the company. Mobile
tagging can thus help improve the product surround and easily establish a direct link
between user and manufacturer. This works both in the pre-sales phase in the store and in
the after-sales phase at home.

Customer Self Service: 2D-barcdes can help to consumers to interact with the
manufacturer for trouble shooting etc. A mobile tag on the product can provide a link to FAQ
pages or an online store for accessories and spare parts. The tag will automatically transmit
detailed information on the product such as serial-number, date of manufacture and usage
locations. Improving the service experience with mobile tagging can significantly improve the
quality perception of a product and lead to competitive advantage.

Customer Relationship Management: Once a customer has registered his or her mobile
phone through a mobile tag, this opens up a channel for direct communications between the
manufacturer and the consumer. This can be used from everything from brand loyalty to
cross-selling and market research.

Mobile Shopping: Mobile tagging allows for context-sensitive, on-the-spot electronic

purchases. An example is a billboard in the waiting lounge of an airport displaying an
advertisement for travel insurance. At the point of departure the traveler could tag the
corresponding barcode, get some quick information, and buy the insurance immediately,
using a secure mobile payment systems.

TV Purchasing: Similarly, a 2D-barcode can be displayed alongside a TV advertisement. By

scanning the bar code the consumer can directly purchase the product using his or her
preferred shipping and billing information that has been preconfigured with the provider.
Likewise, 2D-barcodes can used as a back-channel during interactive with TV shows.

Direct Calls: Mobile tags can also directly establish a phone call instead of linking to a web-
site. Thus, companies can provide easy means for customers to reach them whenever
person-to-person communication is more useful than an internet portal. If a user sees an
advertisement in TV or in a magazine he or she can do so by tagging the accompanying
code and the phone dials the number immediately.

Music Download: A music label can be a partner of a mobile operator. A customer can tag
on an advertisement-poster that links to a download of a new song. The user can easily
download the tune on his or her mobile device and pay for the song with the telephone bill.

Opinion Paper 13 Detecon International GmbH

 Mobile Tagging

3.2 Push tagging

Whenever a barcode is not tagged by a code reader on the device but sent to a user by
SMS/MMS instead we call it “push tagging”. Push tagging is not the focus of this opinion
paper. However, it also offers several important and related use cases. In these the barcode
is displayed on the screen of the mobile device and shown to a barcode scanner, e.g. at a
point-of-sale:

Mobile ticketing and couponing: The code on the devise serves as a ticket or a coupon.
The ticket or the coupon is presented at the point of sale. It can be received as the result of
pull tagging. An all electronic transaction chain is thus established.

Automatic identification: The code helps identify the consumer and gives access to his or
her customer profile at e.g. the point of sales.

Mobile payment: A mobile tag can be sent to the customer’s device at the point of sales,
bearing proof of payment.

Mobile Tagging Use Cases

Opinion Paper 14 Detecon International GmbH

 Mobile Tagging

4 Strategic Options / What should Companies do?

Mobile tagging provides big opportunities for many players and - in comparison to other
conceivable standards such as NFC and RFI - already works and is easy to implement. 2D-
barcodes can act as a catalyst for mobile internet adoption and offers promising uses cases
especially in the areas of mobile advertising. Mobile tagging can offer benefits with no big
investment in infrastructure or technology. In the following, recommendations are given for
mobile operators, advertisers and consumer-oriented companies.

Mobile Operators
O Establish Usage: Push usage of mobile tagging by starting with existing standards
(QR codes and available readers), introducing customers to mobile tagging and the
mobile internet. Follow up with more valuable business models based on the indirect
mode and more complex infrastructure. Work with other players to stimulate uptake.
O Monetize Assets: Capitalize on customer data assets which can enrich mobile
tagging applications. Install the infrastructure to provide companies with user- and
usage-related demographic and statistical data. Think about intelligent solutions to
connect mobile tagging systems with mobile payment solutions.
O Partner: Don’t miss out a role in the mobile tagging value chain by letting the
industry develop without involvement and participation. Position yourselves to
advertisers as the optimal channel for target advertising and ensure a high response
rate.

Advertisers and consumer-oriented companies

O Capture the potential: Even more so than operators, advertisers and consumer-
oriented companies can benefit greatly from the new medium to connect with
consumers. Mobile tagging is ready now and easy to implement by any company
individually. Companies should start experimenting and gaining experience now.
O Coordinate: Help consumer acceptance by agreeing on standards, educating
consumers about the benefits of mobile tagging, and by pushing deployment of code
readers on handsets. By working together on these key issues, the industry can
support the mass-market breakthrough of mobile tagging
O Collaborate: Advertisers and consumer-oriented companies must identify new key
partners with whom they can explore new mobile tagging related business models
and collaborate to create value.

At this point, nobody exactly knows what will be the most important use cases for mobile
tagging. However, it is for certain that in the world of mobile media new business models and
technology innovations will continue to change the landscape. So, especially advertisers and
operators must experiment, and let the users innovate.

Opinion Paper 15 Detecon International GmbH

 Mobile Tagging

5 Reading on
Q White Paper of the CTIA Code Scan Action Team, (08/2008)
http://files.ctia.org/pdf/WhitePaper_CTIA_WIC_CodeScan_9_08.pdf
Q Description of the QR Code:
http://www.denso-wave.com/qrcode/aboutqr-e.html
Q Papers on mobile commerce opportunities and challenges of the GS1 (2008),
http://www.gs1.org/docs/mobile/GS1_Mobile_Com_Whitepaper.pdf (02/2008)
http://www.gs1.org/docs/mobile/GS1_Mobile_Com_Barcodes_Position_Paper.
pdf (09/2008)
Q White Paper on Mobile Codes, Open Mobile Alliance (06/2008),
http://www.openmobilealliance.org/Technical/release_program/mc_v1_0.aspx
Q Understanding the Mobile Ecosystem, Strategy Analytics, 2008
Q Mobile Advertising: The Service Provider Revenue Opportunity, Heavy
Reading, 2008

Opinion Paper 16 Detecon International GmbH

 Mobile Tagging

6 The Authors

Dr. Volker Rieger leads the Technology Portfolio Strategy competence group within
Detecon and also Detecon’s Center of Excellence on Global Technology Intelligence. He has
more than ten years of professional experience in the markets of information and
communication technologies. The focus of his recent work has been on innovative business
and technology strategies for international clients. Prior to joining Detecon’s Bonn office he
was product manager in the mobile communications division of the Bosch Group.
Volker Rieger holds a Ph.D. in physics from the University of Hannover and separate
Master’s degrees from the University of Bonn and the University of Kentucky in addition to a
business degree from the University of Hagen, Germany.

He can be reached at: +49 228 700 1920 or

Volker.Rieger@detecon.com

Arne Linnemüller has studied business administration at the University of Lüneburg and the
University of KwaZulu-Natal (South Africa). At Deutsche Telekom he collected first
experiences on strategic questions in the international telecommunications market. He now
works as Business Analyst in Detecon’s competence practice Information Technology. He
focuses on strategic analysis of ICT markets and the evaluation of innovative, web-based
business models.

He can be reached at: +49 228 700 1929 or

Arne.Linnemueller@detecon.com

Opinion Paper 17 Detecon International GmbH

 Mobile Tagging

7 The Company
Detecon International GmbH

Detecon International is a leading worldwide company for integrated management and

technology consulting founded in 2002 from the merger of consulting firms DETECON and
Diebold. Based on its comprehensive expertise in information and communication
technology (ICT), Detecon provides consulting services to customers from all key industries.
The company's focus is on the development of new business models, optimization of
existing strategies and increase of corporate efficiency through strategy, organization and
process improvements. This combined with Detecon's exceptional technological expertise
enables us to provide consulting services along our customers' entire value-added chain..
The industry know-how of our consultants and the knowledge we have gained from
successful management and ICT projects in over 100 countries forms the foundation of our
services. Detecon is a subsidiary of T-Systems, the business customers brand of Deutsche
Telekom.

Integrated Management and Technology Competence

We possess an excellent capability to translate our technological expertise and

comprehensive industry and procedural knowledge into concrete strategies and solutions.
From analysis to design and implementation, we use integrated, systematic and customer-
oriented consulting approaches. These entail, among other things, the evaluation of core
competencies, modular design of services, value-oriented client management and the
development of efficient structures in order to be able to distinguish oneself on the market
with innovative products. All of this makes companies in the global era more flexible and
faster – at lower costs.

Detecon offers both horizontal services that are oriented towards all industries and can entail
architecture, marketing or purchasing strategies, for example, as well as vertical consulting
services that presuppose extensive industry knowledge. Detecon's particular strength in the
ICT industry is documented by numerous domestic and international projects for
telecommunications providers, mobile operators and regulatory authorities that focused on
the development of networks and markets, evaluation of technologies and standards or
support during the merger and acquisition process.

Detecon International GmbH

Oberkasselerstr. 2
53227 Bonn
Telefon: +49 228 700 0
E-Mail: info@detecon.com
Internet: www.detecon.com

Opinion Paper 18 Detecon International GmbH