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Home Featured

What are the advantages of the advertising industry with the new 5G technology?

Arun Fernandes, Founder-CEO, Hotstuff Medialabs explains the benefits of 5G technology for the advertising sector.

by Editorial
September 21, 2022
in Featured, Think Through
Reading Time: 3 mins read
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What are the advantages of the advertising industry with the new 5G technology?
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In the recently ended spectrum sale, India auctioned 51,236 MHz of spectrum to incumbent operators for Rs 150,173 crore across several 5G networks. This implies a speedier experience for customers, with mobile devices interacting with wireless networks significantly faster and users seeing enhanced download and upload speeds. According to a Deloitte analysis, India’s digital economy is expected to reach USD 1 trillion by 2025 as a result of growing smartphone use, fast internet penetration, and the acceleration of mobile broadband and data connectivity. However, 5G is expected to be the primary driver of this expansion.

5G, like the radio, the internet, and other disruptive technologies before it, will allow advertisers to better engage customers by sending enormous amounts of data at speeds significantly quicker than current 4G technologies allow. 78% believe 5G technology would be superior to 4G, yet 95% are unaware of which 4G features are presently available on their devices. More than 70% are prepared to pay for new technologies (with payment used as a proxy for perceived value). Faster downloads are significant to 71% of 5G users. Respondents do not grasp the phrases “connectivity,” “capacity,” and “latency” and place a low value on these benefits. Here are the advantages of the advertising industry with the new 5G technology:

  • Making your creatives suitable for 5G users.

5G users interact with gadgets in a unique way, which can assist personalise adverts to what they’re most interested in. 5G has several concrete benefits, such as downloading a 2-hour HD movie in roughly 18 minutes, live streaming a concert or live event to friends or family in HD, and low latency gaming with 30-50 millisecond ping. However, tailoring your adverts to fit consumers’ preferences is extremely critical for 5G over 4G. Users that have a strong interest in gaming, entertainment, and live streaming are more likely (92%) to pay for 5G technology and purchase a 5G enabled phone early on, compared to the overall average (81%). With all of the new 5G updates, there is also a huge opportunity to get creative with brand advertisements and innovate with new benefits.

  • 5G Technology unlocks AR/VR Advertising

Because of 5G’s low latency and rapid download rates, advertisers and publishers will have more options to build new streaming media formats with better capabilities. As customers spend more time on 5G phones, they want new experiences to justify the higher cost, therefore advertising must capitalise on this. AR and VR have several applications. Over the next year, it is predicted that 100 million consumers will utilise augmented reality to purchase. Creating increasingly meaningful, immersive experiences is the future of online engagement, and 5G will usher in those capabilities more naturally.

  • Analytics will go real-time

Already, a fraction of the data we can handle and analyse is considered real-time data. 5G will enable the integration of a broader variety of activities and impressions in real time. If a consumer makes a purchase in the future, they may no longer get any advertising connected to that product or product category. Fundamentally, this will improve targeting, segmentation, customer experience, and customer journey, as well as brand and consumer efficiencies.

  • Serve advertisements that leverage 5G advantages

Users may interact with adverts in novel ways thanks to the ability of 5G for advertisers to create more creative and original immersive content. Real, realistic on-device ads experiences may be made possible in various ways with minimal latency. Advertisers may display full-screen commercials that let viewers see how a character or product appears in various settings that they can design and modify right from the creative. Additionally, brands may employ VR to present a 360-degree image of the gaming or social environment. Greater capacity also allows for the production of advertisements in a wide variety of audio and video formats. 5G technology has a tonne of unrealized potential, therefore businesses should be committed to coming up with fresh approaches to interacting with consumers through advertising.

As with previous technological breakthroughs, advertisers will need to have their fingers on the pulse in order to fully capitalise on the new opportunities presented by 5G and avoid falling behind. Fundamentally, it’s fantastic for innovation that our most imaginative ideas may now confront fewer technology constraints. However, adapting our strategy to the new digital context will be a problem.

Views expressed are personal.

Tags: 5G TechnologyAdvertisingArun Fernandeshotstuff medialabs

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