5G has cooked up quite a storm with big promises such as speeds that are 100 times faster than 4G. No wonder then, expectations are soaring. What does this mean for advertising? Let’s explore the future of ads with 5G.
With the upcoming official launch of 5G, many sectors like retail, transport, education, healthcare, etc. will undergo significant transformation. 5G will have a significant impact on marketing and advertising too, with high data rates, reduced latency, and higher device connectivity.
Here are key findings from a recent study on 5G revolution polling 295 advertisers and 1779 consumers by Verizon MediaOpens a new window :
- 54% of consumers are most excited about 5G’s consistent and better-quality video streaming
- 47% of advertisers will use new or additional creative formats via 5G
- 85% of consumers believe 5G will beneï¬t AR
- 33% of advertisers are already planning for 5G
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Also Read: What Is Mobile Ad Network? Benefits, Pricing Models, Types & Best PracticesOpens a new window
Let’s discuss seven future trends in the advertising industry that you must prepare for with 5G.
1. Video Advertising Will be the Top Gainer
Video is the most consumed content on the internet and with the increase in mobile internet speeds, buffering and page load times will drastically reduce, which will lead to increasing video consumption on mobile. Here are a few facts:
- Globally, video traffic will account for 82 percent of traffic by 2022, according to the Cisco Visual Networking Index White PaperOpens a new window .
- Mobile video is the primary driver of digital video ad revenue growth, according to eMarketerOpens a new window .
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Smaato’s Gareth Noonan predictsOpens a new window , “With speeds more than 20 times faster than current 4G networks, 5G will have an especially massive impact on video. 5G will enable users to stream large, high-quality videos faster than ever before, suggesting that time spent in a video will reach new heights.â€
2. Interactive Ads Will Become Ubiquitous
With data exchanged at high speeds, advertisements and landing pages will load faster on mobile phones and desktops and will reduce the number of visitors dropping off because of loading delays.
With higher data processing rates, advertisers will have numerous opportunities to create compelling, creative, and high-resolution ads to engage consumers. With 5G interactive content like live-streaming, 4K videos will become more powerful.
3. IoT Will Open Up Advertising Opportunities
As 5G matures, it will connect everything from consumer devices to infrastructure, making every device mobile in the IoT era. The smartphone can work like a remote to control all things with IoT potential and 5G will only make this technology even more efficient, even more seamless. This in turn will lead to more demand and supply, scaling the number of integrations between IoT and 5G.
Marketers must prepare to serve content and engage customers with multiple formats across various devices. Since we know there are tremendous opportunities to explore with IoT, it’s time to experiment and innovate to find your feet before it becomes mainstream.
4. Growing Data Will Open Doors to Personalization
If 5G can connect regularly used devices, it will generate an unprecedented amount of data. Better access to high-quality data can help understand a customer’s needs in real-time. Faster exchange and retrieval of data will enable more complex and personalized advertising. In-depth, granular, hyper-targeted, and advanced location-based advertising will help create personalized ads to woo customers at the right place and the right time.
For example, when a smart refrigerator reports that a customer’s ready-to-eat meal is out of stock, advertisers can leverage this information to promote (and order) a meal to reach her just in time for dinner.
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5. Voice Will Take the Lead
Audiences are increasingly using voice assistants for all sorts of search queries, to create lists and schedule their activities. Smart speaker sales have been on an upward graph the past year and with 5G you can take your virtual assistant wherever you go.
Mobile advertising will have to prepare and orient towards voice conversations. Advertisers will explore formats and ways to tap into the realm of voice-based advertising.
6. Augmented Reality Will be the New Black
Augmented Reality (AR) is slowly becoming a mobile staple, and apart from being restricted by budgets, speed and latency also play a role in AR adoption. According to Oath, a Verizon companyOpens a new window , “85% of consumers believe 5G will benefit AR.â€
For example, a next-generation mobile device can double up as a projector, or a car’s dashboard could be used to advertise a nearby favorite coffee shop. This could open up a plethora of advertising opportunities.
To create seamless, immersive experiences, a network with high system capacity, lower latency, and more consistency are required, and 5G is expected to solve all these issues.
5G will also offer advertising opportunities like never before:
- High quality, interactive overlays could use any surface as an advertising medium.
- Super-fast bandwidth could help take AR to a regular grocery store, to tap into ‘the buying moments‘ of a customer.
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7. Advertising Architecture Will Need a Revamp
Advertising infrastructures will have to be revamped to handle massive data as well as to deliver sophisticated advertisements.
- Data repositories will need a redesign.
- The programmaticOpens a new window auction process will have to be optimized to take advantage of better speeds and the amount of data processing involved.
- Advertising platforms such as digital billboards will evolve to cater to the real-time needs of the on-the-go customer.
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Also Read: 5 Ways Programmatic AdTech Will Evolve in 2019 Opens a new window
So, How Can Advertisers Prepare for 5G?
As we gear up for 5G, its impact on advertising this year could be minimal. But marketers, advertisers, and publishers need to prepare for the massive changes that will happen once the 5G network is widely available. To prepare marketers and advertisers for the new era, here are some actionable tips to consider:
- Prepare and employ resources (read capital, creatives and infrastructure).
- Establish a partnership with a 5G carrier.
- Create compelling content for interactive, unobtrusive platforms and devices with AR, that can be displayed across a multitude of channels.
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Are you prepared for the future of ads with 5G? Do tell us how on TwitterOpens a new window or LinkedInOpens a new window or FacebookOpens a new window ; we’re always listening!