I will make a prediction for 2006: pet RFID tagging will go mainstream in the United States. This is a product whose time has come.

Part of the challenge in researching RFID pet tags is that the providers wisely stay away from using the term RFID. Instead, it is referred to as a "microchip." Another challenge is that there are various other kinds of tags out there, including little plastic or metal tags that hang on a collar that the pet wears. So most searches for pet tags pull up sites where you can find collar tags (er, dog tags).

However, there is something new on the scene: a well-funded company that is mounting a major television ad campaign. Those of you living in the U.S. may have seen the new TV commercial for Home Again, the microchipping service by Schering-Plough Animal Health Corporation. (If you have not seen the ad, go here and click on the link in the center of the page to watch it online.)

A new product category like this takes "missionary" selling, i.e., a lot of consumer education to convince people this is a product they actually should spend money on. Missionary selling takes time and money. A company like Schering Plough with its market cap of $30 Billion has enough bucks to mount a television campaign for this very purpose.

Americans are known for loving their pets and for spending to prove it. And with a special introductory price of $68.50, this microchipping product is affordable for the mainstream pet owner.

Also, Schering Plough has the reach into veterinarian offices to set up relationships to have the microchip inserted by the vet. That's a crucial part of gaining adoption of a product of this nature. Schering Plough is marketing the chips as part of a service, including an online locator system to find a local veterarian who will implant the chip.

According to the Schering-Plough website, there are over 3 million pets in the United States with the microchip. While it sounds like a large number, that's still only a tiny fraction of the estimated 142 million pet dogs and cats in the United States -- so there is plenty of room to grow.

The chips/hardware are by Digital Angel.

Oh, and about those metal or plastic collar tags: most pet advocates recommend both the microchip and the collar tags. So those collar tags are not going away anytime soon.