The 5G revolution is already present in several Spanish cities. Its generalization continues and will extend further during the second semester of 2020 and throughout 2021. There will be several advantages for consumers over 4G. From downloading movies and games through smartphones or other devices, without a Wi-Fi network; to reduce loading times in advertising ads, improving bounce rates.
Download speeds will be reduced considerably compared to the fourth generation. Boosting the relationship between connected devices (loT), improving the quality of video calls, multiplayer video game experiences or live broadcasts .
But consumers will not be the only ones benefited. For the advertising environment, the ad load times on all devices will be almost instantaneous, so 5G will significantly decrease bounce rates, increase click rates, and improve ROI , among other benefits.
Faced with this new era , Rebold has identified the main changes that will occur in the short term in the madtech environment (martech + adtech).
1. Advances in analytics . According to the marketing and communication company, 5G will benefit the areas of the economy that need real-time analysis of large amounts of data: from activities such as autonomous driving to the exploitation and massive monetization of big data , complex analytics , or the models of artificial intelligence and machine learning.
Regarding marketing, real-time analytics will allow optimizing and modifying campaigns at a higher speed, especially through automation and artificial intelligence. This means that it will be possible, for example, for a consumer to stop receiving advertising for a product or service that they have already purchased , improving the customer experience and investment efficiency and allowing brands to save on this aspect. In this environment, brands will have a new challenge: the integration of consumer data, which will be more fragmented.
2. Hyperlocation. More uniform connections, regardless of the area in which the user is located. This will benefit access to the rural world and favor the development of smart cities. This hyperlocation ” will add additional layers to the segmentation of people “, increasing the number of points of contact with consumers, and the number of sources based on their location and interactions (connected devices, use of apps, social networks , etc.).
3. More demanding users. It will decrease the patience of the clients, who will want everything with just one click. So it will be “essential” to attend your experience much better. Any failure during the moments of consumer contact with the brands will be “more penalized” (abandonment, criticism on social networks, etc.). Services such as chatbots will be extended so that companies serve clients and potential clients immediately.
It will also be crucial for companies to invest in the stability and accessibility of their web-based infrastructure, especially for mobile devices. At the same time, the low latency that 5G will bring will help improve the relationship between brands and users, as consumers use less ad blockers.
4. A wireless environment. Fixed cable infrastructure will no longer be required to deliver fast Internet. For example, it will be possible to receive hundreds of HD and 4K television channels wirelessly . This will also have an impact on the advertising purchasing and service infrastructure around cable television.
5. Protagonism of the video. 77% of Internet traffic in Spain in 2021 will be video, as reflected by Cisco data. Increasing the speed of 5G will also boost mobile video and reinforce its role in the marketing environment, since it will achieve the same quality that a broadband connection has today.
The transmission of live events give a great leap forward, with an 8K quality that will transform the way performances and other live performances are marketed.
6. Growth of esports. Digital sports and other online video games are experiencing a boom that will be further enhanced with the fifth generation. In addition, streaming video games will allow you to play in the cloud, from any device, and without installing anything. Both sponsorship and other forms of advertising in this environment will generate new ways of relating brands to a growing audience .
7. Any surface will be a screen. Any surface with a 5G wireless transceiver can become an interactive marketing support. In this way, a screen can be incorporated anywhere with very fast wireless connectivity, which will also affect the format of the ads, which must be adapted to these new supports.
8. Augmented Reality. A new era for augmented reality is coming as high-quality, smart interactive image overlays are available anywhere. This applies to both 2D graphic overlays and 3D modeled images. Some experts even predict that 5G opens the door to hologram transmission. The relationship of consumers with the advertised products will be closer to a realistic and “tangible” format .
9. Voice marketing. It is estimated that 50% of all internet searches will be done through voice this year. For many experts, the biggest impact of 5G in the advertising environment is that mobile marketing could be entirely targeted at users’ voice conversations with their devices. Even users are open to receive commercial content through smart speakers .