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How 5G technology will change the advertisement market

Aleksey Chigadaev
Aleksey Chigadaev is Digital Projects Director of iMARS Communications. Sinologist, media researcher, specialist in the field of intercultural communications. He was born on the border between China and Russia in Siberia, so from the long age he decided devote himself to studying of the Chinese language, culture and ethnology. For several years he worked in Chinese companies, developing Russian-Chinese economic ties in the field of IT, tourism and cross-border trade. Over the past few years, he has been responsible for advertising campaigns of country umbrella brands (Made in Russia, Good Food Russia) and for promoting major business players (Alrosa, Russian Export Center, Russia Tourist Agency) on the Chinese market in traditional media, social networks, and famous bloggers’ channels, TV etc.

 

So far, 5G networks have been put into commercial operation in only a few countries around the world. In China, it happened on June 6, 2019, when the Ministry of Industry and Information Technology (MIIT) of the Chinese government officially issued the first licenses for the commercial use of 5G mobile networks. It was received by China Telecom, China Mobile, China Unicom, and China Radio and Television. In test mode, 5G networks in China have been used since 2018, but now companies can deploy them for commercial use.

Each previous generation of networks has its way of transmitting the information. 2G technology is the era of text data. 3G – transfer pictures and short audio messages. The 4G connection allowed us to upload videos and watch live broadcasts. Today, even those who are far from technology succumbed to the general euphoria for the introduction of 5G.

What does switching to 5G mean for the consumer?

1. Increased bandwidth – Internet connection will be faster, more comfortable.
2. Minimum video delay and high resolution, which means maximum presence effect.
3. The advent of 5G technology is the most important technological event that will be significant for all areas of society. Essentially, it can change the sphere of marketing and PR. Each previous transition brought with it qualitative changes in the media sphere, including formats and tools for interacting with the audience. Each time this led to a revolution in the world of advertising.

The new round of advertisement development

When the transition to 4G occurred, it became clear that the market is much larger than the totality of all devices and users using these technologies. Its volume can be briefly described by the formula:

4G market size = number of devices on 4G network users * number of apps on user devices * ARPU (Average revenue per user) cost of apps.

The 5G technology will increase the number of advertisements by orders of magnitude, and so far we don’t even understand what figures we are talking about. We can say with the confidence only that it will be very, very much.

The launch of 5G will lead to a significant increase in the advertising market. This will become a trigger for the emergence of new companies that can radically reform the industry. With the advent of 5G, the relationship between advertisers and consumers will move to a qualitatively different level. Page loading time will be minimal. Banner advertising will gradually be replaced by video advertising, which, according to experts, should increase CTR (click-through rate, the ratio of the number of clicks to the number of impressions). Any request can be instantly received, which, in turn, will require the same immediate response.

How exactly are 5G networks able to change the advertisement market? Many conclusions can be drawn on the example of China.

More ad serving terminals

The main advantages of the 5G network are ultra-low chip costs and ultra-low power consumption. This allows you to combine everything that is around the device and form a single intellectual infrastructure.

More immersion

If 3G is the era of pictures and text, and 4G is the time of short videos, then in the 5G era online broadcasts will become the main component of advertising. Work on the effect of immersion will come to the fore. With advanced visualization and immersion mechanisms, bloggers and media will be able to broadcast the environment as fully as possible, regardless of the distance.

HTML5 Landing Pages Instead of Apps

Why download an app, if you can access the H5 cloud page in a couple of seconds and you can close it immediately after you complete the desired action. At the same time, the development of recognition technologies will eliminate the concept of registration or sign anywhere. What does this mean for advertisers? The consumer analysis model will evolve toward an understanding of behavioral models. The new model should be restructured in such a way that, based on only a brief act of interaction, be able to correctly form the portrait of the consumer. Companies will only have a couple of seconds to understand who is in front of them and what he wants.

Fraud Solution

Advertisers, ad networks, and marketing agencies also suffer from fraud. The hardest thing is the latter. Datamation and the development of the Internet of things will standardize the statistical modules of the Internet Protocol (IP). The data stream will increase at times, but the level of transparency of the Internet will also increase. Thus, the fraud problem will be solved at the deepest level of the main data code.

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Katrin

I am passionate about writing stories that excite me, meeting new people and going on adventures is what makes me happy.
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