Roku Says QR Codes Don’t Work. We Agree.

Written by: Rachael Vonderhaar, Michelle Perkins, Lori Marion

Lately, we've gotten a lot of questions about monetization trends for advertising and programming. One trend in this space is commerce media, which connects media views and actual purchases to close the loop between media impressions and commerce transactions. It is a focus area that Fade has been developing a practice for and helping the Media and Entertainment sector understand and embrace it. We call it "profitable engagement." It's connecting thoughtful content, commerce, and technology that goes beyond what people might think of as a trend or a one-off to deliver more relevant consumer experiences. It's a behavior change allowing consistent engagement to drive market cap, where there is a dance between viewership numbers and advertisers that gravitate toward it. A prime example is The Wall Street Journal's story on production costs for the 2022 Yellowstone prequel "1923," which reportedly cost $500,000 per minute. With such stakes, it's no mistake that a QR code strategically sits beside Kevin Costner's iconic buckskin cowboy hat, catalyzing not just engagement but profitable engagement that fuels the bottom line.

Although the origin of QR codes began in the supply chain domain, and COVID propelled their resurgence across the commercial landscape ranging from marketing to payments, it now extends into CTV ads in an abundance. This surge prompts a critical question: Are QR codes secure sources in the CTV environment? Moving beyond aesthetics and efficacy debates as the CTV community debates the QR code's efficacy (Roku's stance on this, as shared with AdExchanger, Roku users were five to ten times more likely to use their remotes than their phones for scanning ads.) We delve into QR Code viewer privacy, safety, and compliance. Let's dig in.

Five considerations for the usage of QR codes no one is talking about:

1. Legitimacy: When a QR code is scanned, the user has no preemptive insight into its authenticity.

2. Security Spectrum: Vulnerabilities arise in the accessibility and visibility of non-dynamically generated codes in areas such as creative testing.

3. Privacy: Data privacy entails control over sharing personal information, but QR codes can compromise this without the consumer's consent, as Jackie Dunham highlights in Sci-tech News.

4. Compliance: QR codes collect user information from device details, including the device's operating system, physical location, time, and number count. A consent-based service model that adheres to certain consumer privacy rights and regulations should request consumers’ consent to track their data before scanning the QR code. Compliance frameworks differ globally but consistently require viewer "opt-in" permissions and consent of users on how their data is being used. The leading compliance policies and laws such as GDPR, CCPA, and COPPA may be compromised. The company Skillcast details the largest GDPR fines thus far in 2023.

5. Exploitation: QR codes can be exploited for phishing attacks (quishing) and malware distribution (QRLjacking), raising substantial security concerns.

Fade Lens Solution

Studies have shown that viewers strongly prefer personalized, opt-in experiences that enhance their viewing. That's why we've developed Fade Lens, a next-generation engagement and retention platform for streaming services that synchronize interactivity from advertising and programming on TV with a second screen. It is an “opt-in” privacy-first, compliant solution that provides viewers the ability to sync their mobile device and TV together just once and send products and services from ads and shows they are interested in—directly to their mobile device. Enabling interactions, reviews, sharing, and purchases to occur within the premium streaming environment they are already in. Fade Lens delivers sustainable growth strategies, profitable engagement, and time spent with:

1. Enhanced Security: Using a distributed model and TLS and AES256 encryption algorithms that ensure client apps and Fade's servers throughout the CTV ad and content workflow provide secure data transfers.

2. Opt-in: Viewer consent and privacy regulations, including GDPR, CCPA, and COPPA.

3. Added Protection: A Multi-Factor-Authentication for added identity protection.

4. Fraud Prevention: Dynamic codes, structured and unstructured cloud data strings to help prevent fraudulent phishing, viruses, and bad actors

5. Directors Intent: Eliminates QR code aesthetic from premium Programming and Ad content.

6. Expanded viewer touch points: Promotes deeper engagement and direct sales on the second screen.

For streaming services, brands, partnerships or to learn more, contact us at info@fade.technology to explore the potential of Fade Lens.