2014 EMERGING TECHNOLOGY PROMOTION

Program Requirements

2014 EMERGING TECHNOLOGY PROMOTION CONTENTS I. BACKGROUND ..................................................................................................... 2 II. PROGRAM DESCRIPTION ...................................................................................... 2 III. ELIGIBILITY REQUIREMENTS ................................................................................ 3 A. Mailpiece Content Requirements……………………………………………...3 B. Registration Requirements……………………………………………………..5 C. Mailing Submission Requirements…………………………………………….5 D. Restrictions on Barcode Placement….……………………………………..…8 E. Requirements at Mail Acceptance & Post Mailing…………………...……...9 IV. TECHNICAL INFORMATION ................................................................................. 10 V. PROGRAM OFFICE CONTACT INFORMATION ........................................................ 10 VI. Revision History………………………………………………………………….11

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2014 EMERGING TECHNOLOGY PROMOTION

I.

MAY 15, 2014 VERSION 2

BACKGROUND Direct mail continues to face competition from many forms of alternative media. Businesses have a variety of electronic and digital options available and are relying heavily on email marketing and social media to communicate with their customers in marketing their products and services. These diversions are having an impact on mail volume. As mobile technology continues to evolve, mail has the potential to offer greater value. To ensure that direct mail continues to be a relevant part of the marketing mix, we encourage customers to adopt and invest in technologies such as Near Field Communication (NFC), “Enhanced” Augmented Reality, and other developing technologies that enhance how consumers interact and engage with mail, improving the long-term value of the product. This strategy provides substantial advantages and opportunities for the integration of innovation in the mail now and in future years.

II.

PROGRAM DESCRIPTION The use of mobile technology continues to be a growing force in the marketing landscape for today’s savvy marketing professionals. This promotion will build upon previous promotions and continue our strategy of encouraging mailers to integrate direct mail with mobile technology. To participate in the promotion, the mailpiece must incorporate the use of standard NFC technology or an “enhanced’ augmented reality experience allowing the recipient to engage in an interactive experience using the mailpiece and mobile device. Near field communication (NFC) is a form of communication between devices such as smartphones, tablets or items embedded with NFC chips, tags or similar technology. Additional information about NFC, “enhanced” augmented reality and other technologies will be provided with eligibility requirements specified in the Program Requirements document. Best practices such as directional copy and mobile optimization are also required. NOTE: The mailpiece must use either NFC or “enhanced” augmented reality, both are not required to be used in the same mailpiece.

III.

Registration Period:

June 15 - September 30, 2014

Program Period:

August 1 - September 30, 2014

Discount Amount:

2% of eligible postage. The discount is calculated in PostalOne!® and applied to the postage statement at the time of mailing. The 2% discount is deducted from the postage amounts of qualifying product categories that are paid at the time of mailing. Normal postage prices listed in the published Price List (Notice 123) apply to the mailing and the discount is applied to those prices.

Eligible Mail Classes:

Standard Mail® letters and flats Nonprofit Standard Mail letters and flats

Ineligible Mail Classes:

First-Class Mail and Standard Mail parcels First-Class Mail® presort & automation letters, cards & flats Periodicals (includes Pending Periodicals mail) Bound Printed Matter Media Mail

ELIGIBILITY REQUIREMENTS Page 2 of 11

2014 EMERGING TECHNOLOGY PROMOTION

MAY 15, 2014 VERSION 2

A. Mailpiece Content Requirements 1. Participation in this promotion will require the mailpiece to incorporate the use of at least one of the following technologies1: - Near Field Communication technology, - “Enhanced” Augmented Reality technology Listed below are detailed descriptions of the specific requirements for each of these technologies. . a. Near Field Communication (NFC) Requirements: NFC technology generally consists of embedding a small chip or other form of technology into a carrier (mailpiece or other item) that can be recognized by a NFC enabled mobile device. Eligibility for this promotion will require interaction that is initiated by touching the mobile device on the NFC embedded mailpiece or by placing the mobile device within 1-2 inches of the NFC embedded mailpiece.  

Examples of NFC usage for this promotion include, but are not limited to; The mailpiece could be embedded or affixed with NFC technology that would allow the mobile device to download applications, videos, games, pictures or other content related to the mailpiece. NFC technology embedded within the mailpiece interacts with the mobile device upon touch or proximity to the mailpiece to generate a communication related experience.

(These are just a few examples and are not designed to limit or restrict the use of NFC technologies. Examples of usage and any new developments for the technology can be submitted to the Program Office for prior approval.) b. “Enhanced” Augmented Reality Requirements: A general definition of Augmented Reality (AR) is a live view of a physical, realworld environment whose elements are augmented by computer-generated sensory input such as sound, video, graphics or GPS data, etc. The technology leads recipients to engage in an augmented reality experience that is facilitated by a mobile device or computer. The AR experience has the following characteristics: it combines real and virtual experience, it is interactive in real time, and it is rendered in 2D or 3D. “Enhanced” Augmented Realty requirements are intended to encourage mailers to leverage the technology to create the most robust and engaging experience for the mail recipient. Therefore, the augmented reality requirements are more complex than basic AR usage. The use of static, pop-up or non-interactive worded displays placed over the mailpiece do not qualify as “enhanced augmented reality as prescribed for this promotion. The requirements seek to drive the mail recipients to an experience more than that of reading content from a pop-up bubble or providing the ability to simply click a button. 1

Other emerging technologies integrated with mailpieces that engage a mobile device in providing an unique, value-added experience for the recipient may also be considered for eligibility with prior approval by the Program Office for acceptance in the promotion.

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2014 EMERGING TECHNOLOGY PROMOTION

MAY 15, 2014 VERSION 2

For the purposes of this promotion, only “enhanced” AR incorporating the robust features and enhanced engagement that adds value to the consumer experience as described below will qualify for the promotion discount. The advanced AR elements highlight a high-level of interaction within an AR experience occurring in front of or over physical objects (mailpiece) so they appear to be interacting with the physical object. The eligibility requirements for this promotion may include some of the basic elements, but must include one or more of the “enhanced” AR elements, such as those listed below. This is not limited to these features and can incorporate other advanced technology features. 

Video Animation o The video screen must appear as part of an AR display o The video animation must be displayed on top or as part of the physical mailpiece environment o The video animation must have an engagement that is related to the mailpiece contents o 2D-3D interactive graphics enhancing the consumer engagement and the interaction of the mobile device. o This can include an interplay between the physical (mailpiece) and a digital environment that actively uses the person’s perspective as they view the mailpiece through the mobile device. Non-qualifying Video Uses o The initial interaction that takes place when scanning the mailpiece with the mobile device to initiate AR experience does not meet this requirement. o A video that resides on public access sites such as, Youtube, Facebook, etc does NOT met this requirement. o The video can not instantly appear and start encompassing the entire mobile device screen.



Gamification or mobile game play o This is the use of game thinking and game mechanics in non-game contexts to improve user engagement and return on investment o Gamification or mobile game play techniques include: rewards for players who accomplish tasks such as points, badges or virtual currency; competition with other players, adding meaningful choice, increasing challenges and added narratives.

2. Directional Copy Requirement: The mailpiece must contain text near the barcode or image providing guidance to the consumer on how to experience the augmented reality or NFC feature. This could include information about downloading an app and which images should be scanned. Examples include: a. Scan here to play an interactive game b. Scan the barcode for an interactive experience c. Download our app and scan this page to see your mailpiece come alive Page 4 of 11

2014 EMERGING TECHNOLOGY PROMOTION

MAY 15, 2014 VERSION 2

d. Tap your phone here to engage with our products e. Download our app for an interactive experience f. Tap here with your NFC enabled phone g. Wave your NFC enabled phone here

3. Destination/Interaction Requirements – Mobile Optimization: For those technologies which link to or utilize a website, a mobile optimized experience must be specifically designed for optimum performance when viewed on a mobile device such as a smartphone or tablet. There are several commonly used techniques in developing mobile experiences to bridge the differences between a full sized monitor and a mobile display. Participants must use these or similar techniques to qualify for the promotion. a. Screen Size and resolution is adjusted so that users do not have to scroll horizontally b. Page sizes are compressed to enable faster downloading c. Outbound links take users only to mobile optimized pages d. Contrast and color scheme is adjusted for viewing on smaller screens and outdoor viewing. e. Device detection directs mobile users to appropriately formatted content f. Use menu options as opposed to free-text entry whenever possible

Links to a traditional desktop site do not meet the requirements for this promotion.

If you have any questions about the mobile optimization requirement, please contact the Program Office at [email protected]. B. Registration Requirements Participants and/or Mail Service Providers (MSPs) must register on the Business Customer Gateway (BCG) via the Incentive Program Service (gateway.usps.com). Promotion participants must complete their registration (including agreeing to the promotion terms) at least 2 hours prior to presenting the first qualifying mailing and specify which permits and CRIDs will be participating in the promotion. The USPS Promotions & Incentives Program Office recommends that mailers register several days in advance of the first qualifying mailing. NOTE: As part of the terms of participation, all mail owners must complete a Page 5 of 11

2014 EMERGING TECHNOLOGY PROMOTION

MAY 15, 2014 VERSION 2

survey about their participation in the promotion at the end of the promotion period. Auto Enrollment (for Mail Service Providers): Electronic documentation (eDoc) enrollment using Mail.dat, Mail.XML, or Postal Wizard enables MSPs to enroll their clients in real-time when eDocs claiming the promotion are submitted. During postage statement finalization, PostalOne! will validate that the MSP CRID in the eDoc is enrolled as an MSP. The PostalOne! system will enroll the client(s) in the promotion based on the "For" field data in the eDoc, and will only then calculate the discount if there are no system Warnings. PostalOne! will perform By/For Warning validations and generate warnings for MSPs that are not registered and for invalid CRIDS or Mailer IDs. In the case of Warnings, PostalOne! will process the eDoc and allow the mailing without failing the file. However, PostalOne! will not apply the promotion discount to the mailing. C. Mailing Submission Requirements Documentation/Postage Statement Mailings must be submitted electronically via mail.dat, mail.xml or Postal Wizard. Mailings submitted via Postal Wizard claiming the Full Service discount cannot exceed 9,999 pieces. The discount must be claimed at the time of the mailing and cannot be rebated at a later date. . Mailings that are prepared and entered by an entity other than the mail owner must indicate the owner’s identity in the electronic documentation ("eDoc"). The eDoc must identify the mail owner and mail preparer in the By/For fields by Customer Registration ID (CRID). In a commingled, combined or co-mailing, separate postage statements must be used for mailpieces not meeting promotion requirements. Combined and Commingled Mailings Participating mailers will be required to affirmatively claim this promotion in the Incentive Claimed section on electronic postage statement submissions certifying each mailpiece meets all eligibility requirements. All mailpieces covered by a postage statement must meet all eligibility requirements. First-Class Mail and Standard Mail commingled, combined, and co-mail mailings (including MLOCR mailings) may only qualify for the Promotion if:  all of the pieces commingled in the mailing meet program requirements, or;  the mailings include multiple clients (or versions) but have separate postage statements generated for the mailpieces that contain mobile technology. Mailing Date Mail must be tendered for acceptance during the promotion period, August 1September 30, 2014. Plant-Verified Drop Shipment (PVDS) mailings that are verified and paid for during the promotion period and qualify for the promotion will be accepted at destination entry postal facilities through October 15, 2014, when presented with appropriate verification and payment documentation (PS Form 8125). A PVDS mailing that qualifies for the promotion cannot have verification or the actual drop ship occur prior to August 1, 2014. Any qualifying mailing that is accepted and paid for prior to August 1, 2014 is not eligible for the promotion discount. Page 6 of 11

2014 EMERGING TECHNOLOGY PROMOTION

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Postage Payment Method Postage must be paid using a Permit Imprint or Precanceled Stamp permit. Some Meter Permit mailings may qualify. Every Door Direct Mail (EDDM) deposited at a Business Mail Entry Unit may qualify, but EDDM Retail mailings taken to local Post Office retail units are ineligible to participate. Meter Mail/Precanceled Payment Option Meter mailers who wish to claim the incentive must affix the appropriate promotion option. Mailers must select the appropriate Affixed Method option as follows:  VAR/CVAR Meter Mail: all options are available (Lowest, Correct and Neither)  NonVAR/CVAR Meter Mail: only option available is “Neither”  Precanceled: Only “Neither” is an option Any net postage due for the mailing must be paid from an advanced deposit (permit) account.

Incentive Postage Amount Affixed

Processing Category First-Class Mail Cards First-Class Mail Letters auto and presort First-Class Mail NM Letters First-Class Mail Flats - auto and presort

N/A N/A N/A N/A

Standard Mail Regular Auto/PRSRT/CR Letters Standard Mail Regular Auto/PRSRT/CR Flats

0.12 0.13

Standard Mail Nonprofit Auto/PRSRT/CR Letters Standard Mail Nonprofit Auto/PRSRT/CR Flats

0.05 0.06

IMb Requirements: Certain mail categories, as indicated in the table below, must be sent in a Full-Service IMb mailing. For purposes of this incentive, a Full-Service mailing is a mailing where 90% of the mailpieces reported on the postage statement meet the Full-Service requirements. Mail Category

FullService IMb Mailing Required

IMb Not Required

First-Class Mail Letters and Cards

N/A

N/A

First-Class Mail Commercial Flats

N/A

N/A

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2014 EMERGING TECHNOLOGY PROMOTION

Standard Mail Letters – Carrier Route & Automation (includes Nonprofit)

Carrier Route (Saturation, High Density, High Density Plus & Basic) Automation (5-digit, 3digit, AADC, Mixed AADC)

Standard Mail Letters – Nonautomation (includes Nonprofit)

Standard Mail Flats Carrier Route and Automation (includes Nonprofit)

MAY 15, 2014 VERSION 2

Carrier Route (Saturation, High DensityHigh Density Plus & Basic) Machinable (AADC & Mixed AADC) Nonmachinable (5-digit, 3-digit, AADC, Mixed ADC) Automation (FSS, 5-digit, 3-digit, ADC, Mixed ADC)

Carrier Route Saturation

Carrier Route (High Density, High Density Plus & Basic)

Standard Mail Flats – Nonautomation (includes Nonprofit)

Nonautomation (5-digit, 3-digit, ADC, Mixed ADC)

D. RESTRICTIONS ON BARCODE PLACEMENT The mobile technology can be placed on the inside or outside of the mailpiece. The barcode cannot be placed on a detached address label (DAL) or card that is not attached to or enclosed within the mailpiece (e.g., unattached blow-in card). The mobile-print technology cannot be placed in the indicia zone or the barcode clear zone on the outside of the mailpiece. Additional guidance is provided below: Barcode Clear Zone Barcode Clear Zone for Letters: The barcode clear zone for letters is defined in the Domestic Mail Manual (DMM®) section below. DMM design requirements (DMM Sections 202.5.1) must be met: DMM® 202.5.1 Barcode Clear Zone: Each letter-size piece in an automation price or an Enhanced Carrier Route price mailing must have a barcode clear zone unless the piece bears an Intelligent Mail barcode with a delivery point routing code (see 708.4.3) in the address block. The barcode clear zone and all printing and material in the clear zone must meet the reflectance standards in 708.4.4. The barcode clear zone is a rectangular area in the lower right corner of the address side of cards and letter-size pieces defined by these boundaries:  Left: 43/4” inches from the right edge of the piece  Right: right edge of the piece  Top: 5/8 inch from the bottom edge of the piece  Bottom: bottom edge of the piece Page 8 of 11

2014 EMERGING TECHNOLOGY PROMOTION

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A pictorial description of the barcode clear zone on letters can be found in Quick Service Guide 602 at the link below: http://pe.usps.com/text/qsg300/Q602.htm#1009536 Barcode Clear Zone for Flats: For flats, the mobile barcode should not be placed within 1/8” of the actual routing Intelligent Mail barcode. Indicia Zone The “Indicia Zone” is two inches from the top edge by four inches from the right edge of the mailpiece; in addition, the mobile barcode should not be placed within two inches of the actual postage indicia when the indicia is not placed in the described “indicia zone.” Indicia Zone for Flats: For optimal processing, avoid placing the barcode, images, or tags in the destination address block and indicia. Indicia Zone for Letters: The “Indicia Area” on letter mail is the top-right corner. The Postal Service’s Barcode Sorters look for these Information-Based Indicia (IBI) codes in the zone 2” from the top edge x 4” from the right edge of the mailpiece. Barcodes, images, or tags cannot be used in this area. E.

REQUIREMENTS AT MAIL ACCEPTANCE AND POST- MAILING

At Mail Acceptance: The mailer must provide a hard copy, unaddressed sample of the mailpiece showing the placement of the mobile barcode, image, or tag and directional copy to the acceptance clerk. If a mailing agent submits promotional mailings from multiple mailers, a hard copy sample of each mailer's mailpiece must be presented. All mailings are subject to standard acceptance and verification procedures and may be inspected for use of the emerging technologies, mobile barcodes, images or tags, etc. and directional copy. 

Addressed samples will not be accepted. If pieces are variably printed, one sample that is comparable to the mailing may be presented.

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If the mailer is unable to print an unaddressed mailpiece the mailer should remove a piece from the mailing, remove the address (e.g. place a blank address label over the address) and submit it at mail acceptance. As an alternative, an addressed piece may be accepted if the mailer marks through the address and marks "USPS Promotion Piece Sample" on the piece.

Post Mailing Requirements: The Program Office will conduct a sampling of mailpieces collected at Business Mail Entry Units to verify that submissions meet program requirements. The Postal Service reserves the right to pursue a revenue deficiency for mailings that do not meet all program requirements, to unenroll the mailer from the program or restrict participation in future promotions. Additionally, all mailers who receive the discount must retain an electronic or hard copy sample of the mailpiece until December 31, 2014, and if requested by the Postal Service, must forward such sample to the Promotion Program Office.  If a mailing contains mobile barcode image, tag, and directional copy mail from Page 9 of 11

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multiple mailers, a sample of each mailer's mailpiece must be retained. IV.

TECHNICAL INFORMATION For further technical and IMb information, please refer to the relevant posted Technical Specifications on RIBBS at: https://ribbs.usps.gov/index.cfm?page=intellmailguides

V.

PROGRAM OFFICE CONTACT INFORMATION Further questions can be directed to the Program Office. Email: [email protected] Facsimile: 202-268-0238 Mail: US Postal Service 2014 Emerging Technology Promotion P.O. Box 23282 Washington, DC 20026-3282 Information and resources will also be posted online on RIBBS and USPS.com at: https://ribbs.usps.gov/index.cfm?page=mobilebarcode and https://www.usps.com/business/promotions-and-incentives.htm?

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VI. REVISION HISTORY Date 5/15/14

Section III – A. Eligibility Requirements

Reason for Revision Removed – “The video” must stop playing when the mobile technology is disengaged or moved away from the physical mailpiece Authorized -The video can continue to play when the mobile device is moved away from the mailpiece.-.

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