Microsoft tags can be compared very closely with QR codes. The difference is that Microsoft tags use four colors in a 5 by 10 grid and the code works in monochrome. Like QR codes, they have to be large enough in size for a phone to be able to read the code and distance varies depending on the type of ad that the tag is produced on. Generating a Microsoft tag is simply because there are multiple web sites that can generate tags. When you track a Microsoft tag, you follow the same basic process as that of a QR code. You can use the generator to count how many people scan the tag and how many people actually proceed to click around the web site the tag takes them too.
Source:
http://en.wikipedia.org/wiki/Microsoft_Tag#Microsoft_Tag
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