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It will be very, very much: how 5G technology will change the advertising market

The amount of advertising around us can grow tens or even hundreds of times. Alexey Chigadaev, Head of International Digital Projects at iMARS China, told how 5G technology can contribute to this.



So far, 5G networks have been put into commercial operation in only a few countries around the world. In China, this happened on June 6, 2019, when the Ministry of Industry and Information Technology officially issued the first licenses for the commercial use of 5G mobile networks. They were received by China Telecom, China Mobile, China Unicom and China Broadcasting Network. In test mode, 5G networks in China have been used since 2018, but now companies can deploy them for commercial use. And in November 2019, the country alreadystarted developing 6G technology.

In Russia, fifth-generation communications are planned to be launched in several million-plus cities in 2021, although frequencies have not yet been allocated for this.

A new round of communication evolution


Each previous generation of networks has its own way of transmitting information. 2G technology is the era of text data. 3G - transfer pictures and short audio messages. The 4G connection gave us the opportunity to upload videos and watch live broadcasts.

Today, even those who are far from technology have succumbed to the general euphoria for the introduction of 5G.

What does switching to 5G mean for the consumer?


  • Increased bandwidth - Internet connection will be faster, more comfortable.
  • Minimum video delay and high resolution, which means maximum presence effect.

The advent of 5G technology is the most important technological event that will be significant for all areas of society. In a fundamental way, she is able to change the spheres 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.

A new round of advertising 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 following formula:
4G market size = number of devices on 4G network users * number of applications on user devices * ARPU cost (from the English Average revenue per user - average revenue per user) of applications.
If you try to make a similar formula for 5G, then each of the factors must be increased tenfold. Therefore, the market volume in terms of the number of terminals, even according to the most conservative estimates, will exceed the 4G market by hundreds of times.

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

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 (clickability, 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.

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 are able to radically reform the industry. The financial effect is still difficult to predict. But if we take into account the history of the network, we can say that we are talking about a multiple increase in volumes - not even thousands, but tens of thousands of times.

What will be the advertisement


So how exactly are 5G networks able to change the advertising market? Many conclusions can already 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 into a single system: the screen of the mobile phone will be torn from alerts that will come from the refrigerator, washing machine, and possibly furniture and clothes. In other words, all the objects around will be able to form a single intellectual infrastructure.

According to statistics, every hundred people own approximately 114 devices. With 5G, this figure can grow to 10 thousand.

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. New technologies will give impetus to the development of such forms of interaction as VR and holographic projections.

What will such an advertisement look like? This is one of the challenges of the 5G era. Probably, 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 Applications


Why download the application if you can access the cloud page in a couple of seconds and close it right after you complete the necessary action?

This principle applies to all software. Why download something if you can get instant access to any resource?

Along with this, the development of recognition technologies will eliminate the concept of registration / entry anywhere. Why spend time on this to pay for a product / service, write a comment under an article, or transfer money to friends if all this can be done using a face scan or retina?

What does this mean for advertisers? The consumer analysis model will evolve toward an understanding of behavioral models. H5 pages will not have full access to personal data. Therefore, the new model should be restructured in such a way that on the basis of only a brief act of interaction be able to correctly form a portrait of the consumer. In the literal sense of the word, companies will only have a couple of seconds to understand who is in front of them and what he wants.

More usability


At the end of 2018, more than 866 million accounts were registered in 90 countries , which is 20% more than in 2017. The report shows that the mobile payments industry in 2018 processed transactions worth $ 1.3 billion per day (twice as much as cash transactions). Obviously, this method will be increasingly important for ordinary consumers.

Face recognition technology will speed up the shopping process as much as possible. In an ideal world of advertising, it would be like this: the consumer saw information about a product or service, he liked it, and at the same moment he gives his consent to the purchase and makes payment. Calculations using face recognition technology have already been implemented in several large cities.

A new round of development of virtual reality opens up a new round of struggle for the client. Information about the geographical location, purchase history, interests and needs - for this data about users and the ability to work with them, sellers of the future will fight.

Fraud Solution


From fraud (from the English fraud “fraud” in online advertising - various ways to simulate or intercept the actions needed to perform the KPI of the advertiser), advertisers, advertising networks, and marketing agencies also suffer. The hardest thing is the latter. They work with publishers and networks on a prepaid basis, and then wait for a reward from advertisers who may refuse to pay for part of the work.

Automatic data processing (datamation) and the development of the Internet of things will standardize the statistical modules of the Internet Protocol (IP). The data flow will increase many 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.

Over 90% of traffic - video


The transmission speed in 5G networks will reach 10 Gb / s. This means mobile phone users can download high definition movies in less than a second. The PwC China Entertainment and Media Industry Outlook 2019–2023 report highlighted two key benefits of migrating to 5G: increased throughput and minimal latency. According to Intel and Ovum, the traffic of each 5G user by 2028 should increase to 84.4 GB per month.

Short videos are a separate branch of production and promotion.

The number of short clips is growing rapidly. In the field of video advertising, a complete production chain of content planning, video shooting, post-production, advertising and data monitoring has already been formed.

According to the most conservative estimates, only in China there are currently tens of thousands of advertising agencies that produce short videos. There will be even more, and production will become cheaper at times.

There are many short videos, but this explosive growth poses a lot of questions for advertisers: where is art and where is spam? With the advent of 5G, there will be even more platforms for their placement, as well as new models of advertising integrations. This is another challenge. How to compare video performance across platforms? How to promote short videos on new platforms?

AI is the foundation of the business of the future


After 5G technology becomes more mature, artificial intelligence will no longer depend on the hardware environment. It will be possible to use the computing power of data centers anywhere and anytime.

Creative directors will have the opportunity to collect a huge amount of data about consumers from all over the world, and artificial intelligence through self-training will be able to offer concepts of potentially successful texts, advertising layouts, product designs, websites, etc. All this will take seconds.

On November 11, 2017, during the world famous Bachelor’s Day (a modern Chinese holiday celebrated on November 11), the “killer of designers” AI Luban already worked on the Alibaba platform - an algorithm that can create 8 thousand banners every second without any repetitions. Is your designer weak?

Games - the largest advertisers and the most important media platforms


In 2018, actual revenue from sales in the Chinese gaming market reached $ 30.5 billion, an increase of 5.3% compared to 2017. With the advent of 5G, the gaming industry will make a new leap in development. Online games are becoming the largest advertising platform, which will lead to an increase in the cost of advertising itself.

Now the quality of your device cuts off some of the games that you can play. To run many of them you need high-quality iron. In a 5G world with more advanced technologies, users will be able to run any game on any device using remote servers, including smartphones, which are likely to become even thinner.

***

Many of yesterday’s revolutions seem everyday and natural today. In 2013, active Internet users in the world wereabout 2.74 billion people. By June 30, 2019, this figure, according to Internet World Stats (IWS), increased to 4.5 billion. In 2016, StatCounter recorded an important technological shift: the number of Internet connections via mobile devices exceeded the number of calls to the global network from personal computers. Until recently, 4G technology seemed like a breakthrough, but very soon 5G will become an everyday occurrence.

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