Google's Near Field Communication (NFC) Technology

The following is an e-mail response I sent to a partner when discussing/comparing Google's recently announced Near Field Communication capability to other mobile direct response methods.  The "droplet", described below, is printed card stock with NFC chip technology embedded into it.

The droplet has a tiny "NFC" chip embedded in it which transmits a low power, encoded signal.   This signal is received/decoded by the mobile phone which has an NFC chip embedded in it as well.  

This is similar to a QR code where a URL, phone number or other data can be encoded/stored in the QR code image and received/decoded by a QR code enabled phone.  The main difference between QR codes and NFC is how the encoded data is "received" by each method.  With the QR code, the encoded data is received by scanning the QR code via the mobile phone camera.  The QR code image is then decoded via the QR code app. installed on the mobile phone.  With the NFC method, the encoded data (stored in the droplet) is received by the NFC chip/receiver and then decoded on the phone.

The NFC method gets us closer to what I coin as "Effortless Mobile Capture and Response" or EMCR, as this method only requires the mobile phone user to "wave" the phone a couple of inches away from the NFC transmitter to receive the encoded message.  With the QR code method, the user has to line up (correctly) and scan the QR code image to receive the encoded message.  

It makes logical sense that the easier it is to respond to a marketing message, the higher the response rate will be.  The down side of the NFC method is the mobile phone has to have an NFC chip in it to work.  With the QR code method, the mobile phone user simply downloads/installs a free app. to capture and decode the encoded message.  

SMS is even more universal, as it only requires that the mobile phone have SMS/text capabilities (which every mobile phone sold now has with exception to the Japanese market).

In short, SMS is most universal to-date, but it also takes the most amount of effort to respond to a marketing message.  Conversely, NFC is the least universal to-date, but it's also the least amount of effort to respond to a marketing message.  It will be interesting to see if NFC takes off beyond the Nexus S.  Something to keep our eyes on.

- mOlson

P.S.

I think I just wrote my next blog post. :-)

It will indeed be very interesting to see where this goes.  Rumors that the new iPhone 5 will have NFC increases the likelihood of success.

Comments

[caitlin]

what kind of device/receiver would the store need to "talk" with the phone?

[NapkinsOnly]

Some really good actionable information here. Great post Mark!
You're right, it will be interesting to monitor the adoption of NFC technology. The technology has the ability to completely revitalize the offset printing/offline direct marketing industries that have taken a back seat as late to more measurable, paperless, online advertising solutions. Again, you're right in that the SMS Text message is clearly the most democratized of mobile process at the moment. I suppose a QR Code programed to auto SMS Text is, at present, the most Effortless Mobile Capture Response method for the mobile marketeer.
In a future post, I would love to get your take on the Google Goggles project and it's ability to return information via simply snapping a pic from any common GPS enabled smart phone. Thanks for another great post Mark!

Best Regards, Brock

[mOlson]

@caitlin, the device/receiver would look something like this: http://www.cobizmag.com/articles/state-of-the-state-technology2/