On October 13th, Apple finally launched the much-anticipated iPhone 12 series, all equipped with 5G compatibility. Though for Android devices, 5G has been standardized into a must-have spec, Apple delayed its 5G-enabled flagship phones by a year. With Apple onboard, many people say we officially entered the 5G era.
What is 5G? According to Qualcomm, the chipmaker, 5G wireless technology is meant to deliver higher multi-Gbps peak data speeds, ultra-low latency, more reliability, massive network capacity, increased availability, and more uniform user experience to more users. Higher performance and improved efficiency empower new user experiences and connect new industries. While the impact of 5G still depends on the penetration of 5G-enabled devices, the advertising industry has started to embrace the change and think about what will be impacted. So here are a couple of ideas.
Better ad experience
This is the obvious part. As 5G loads data faster with lower latency. Faster speeds mean more content to view – web pages, apps, games, and more. It will then translate to more advertising opportunities on mobile devices. Interactive ads will become ubiquitous. With higher data processing rates, advertisers will have numerous opportunities to create compelling, creative, and high-resolution ads to engage consumers. With 5G interactive content like live-streaming, 4K videos will become more powerful.
5G can locate targets more accurately, realize true close-range advertising, and open the door to high-performance local and close-range marketing. In the 5G era, the symmetry between user information and user needs will be greatly improved, thereby solving the problem of low advertising efficiency and reducing the advertising costs of brand owners.
Augmented Reality
With 5G, data can be rendered in real-time to offer a convincing and immersive experience for users. There is no longer a limit for data bandwidth. 4G, by comparison, struggles to deal with the weighty data capacity that AR demands. Now that mobile devices become powerful enough and equipped with 5G speeds, it can be expected that AR will penetrate more and more users.
Since its conception, AR is said to be a game-changer for advertising. With AR, advertisements become much more interactive than before, which allows advertisers and marketers to connect with consumers in completely different ways. Being immersive means AR ads are much better at creating an emotional connection with customers in real-time, than a traditional picture or video ads. AR ads are designed to be lifelike and responsive to the user's reactions. Beyond just seeing the ads, AR also offers virtual try-ons as a new and exciting way to increase sales volumes. For furniture, clothing or jewelry items, customers have the freedom and flexibility to see them in their apartment or on their hand, without having to go to the physical store or ask a shop assistant. This becomes even more interesting in the context of the pandemic. Post-pandemic, will more people choose AR stores instead of going to the actual store? I believe the answer is likely yes.
IoT
As a major use case and a promise from all 5G operators, IoT is expected to be even more powerful, thanks to ultra-low latency and wide reach of the 5G network. As 5G becomes widely deployed, everything will be connected, ranging from consumer devices such as your smartphone and wearables, to infrastructure including the trees along the street. All devices and sensors will join the IoT era, and any smart devices can work like a central hub to remotely control all things.
With an explosive amount of data from connected devices, advertisers will be able to know customers even better, with behavioral and real-time analytics. Marketers are also preparing to serve content and engage customers with more variations of formats across devices. Connected cars, connected pets, connected everything will open up new channels for marketers to reach their audience, with more precise targeting.
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