How 5G will Change Advertising Industry27-Oct-2020
5G is set to take connectivity to a whole new level with a promise of speeds that are 20 times faster than 4G. Although the technology has no set definition or tech specifications yet, the coming of next-gen 5G wireless transmission promises something great for everyone – advertisers, publishers, and consumers. One of the many questions many people ask about 5G is how it will transform the advertising industry. When 5G rolls out fully, here are ways it is poised to impact advertising.
1. Video Advertising will Increase:
One of the most appealing benefits of 5G is faster load speeds and that means there will be less lag. This will lead to increased consumption of videos, which is already the most preferred type of content today. Mobile advertising suffers from lag times and latency but 5G will enable users to stream large, high-quality videos faster than ever before while advertisers will have to work harder to create awesome video content. In effect, faster ad display will also help improve the experiences of users and make them less annoyed with ads.
2. Interactive Ads will become the Norm:
There’s a lot of potentials to improve ad delivery on mobile devices and 5G provides the needed load's speeds and less lag to make it happen. A top cause for bounce rate are ads that seem to take forever to load but 5G will help solve this problem by minimizing loading delays, giving users a more enjoyable experience with mobile advertisements. As a result, advertisers will have the freedom to create high-resolution and engaging ads while 4K videos and live streaming will become more powerful.
3. AR will Take Over:
Augmented Reality is becoming more popular and the technology is expected to transform the way users interact with the technology. 5G’s lower latency and high system capacity will help render data in real-time to offer a truly immersive experience for users. Although 4G features a fast data exchange speed, it has proven to be unable to handle the weighty data capacity that AR requires. 5G can deliver such a seamless experience.
4. More Data for More Personalization:
Owing to the speed, cost, and energy efficiencies of 5G, the technology will aid the rise of connected devices, which in turn translates to higher volume and higher quality of data. The outcome will be massive datasets available on-demand that will enable advertisers to understand the needs of users in real-time and display ads accordingly. For instance, a smart refrigerator powered by 5G will send out data that a customer’s meal is out of stock and this information can be used to promote personalized ads.
5. Precision Locations:
Many advertisers use demographic targeting to reach their target audience and the emergence of 5G will enhance location services due to high data speeds, better sensors, and improvements in geo-capabilities. Advertisers will be able to deliver personalized ads to millions of devices simultaneously, increasing the possibilities of higher conversions and more revenue.
It’s been barely a decade ago since 4G was launched and it has given rise to services like Google Maps and Snapchat among other apps. 5G is getting rolled out and it is set to impact different industries like the advertising sector by increasing efficiency and helping advertisers hit their goals.