The amount of advertising around us can grow tens and even hundreds of times. Alexey Chigadaev, head of international digital projects at iMARS China, spoke about 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 the first licenses for the commercial use of 5G mobile networks. Their China Telecom, China Mobile, China Unicom and China Broadcasting Network. China has been using 5G networks in test mode since 2018, but now companies can deploy them for commercial use. And in November 2019, the country already 6G technology.
In Russia, fifth generation communication launch in several million-plus cities in 2021, although frequencies for this have not yet been allocated.
A new round of communication evolution
Each previous generation of networks had its own way of transmitting information. 2G technologies are the era of text data. 3G - transmission of pictures and short audio messages. The 4G connection gave us the ability to download 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 the transition 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.
The advent of 5G technology is a major technological event that will have implications for all areas of society. It can radically 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 it led to a revolution in the world of advertising.
A new round of advertising development
When the transition to 4G took place, 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 4G network user devices * number of applications on user devices * ARPU cost (Average revenue per user - average revenue per user) of applications.
If you try to make a similar formula for 5G, then each of the multipliers must be increased ten times. Therefore, the market size in terms of the number of terminals, even according to the most conservative estimates, will exceed the 4G market hundreds of times.
5G technology will increase the amount of advertising by orders of magnitude, and so far we donβt even understand what numbers we are talking about. We can only say with certainty that it will be very, very much.
With the advent of 5G, the relationship between advertisers and consumers will move to a qualitatively new 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.
The launch of 5G will lead to a significant growth in the advertising market. This will be a trigger for the emergence of new companies that are able to radically reform the industry. The financial impact is still difficult to predict. But if we take into account the history of the development of the network, then we can say that we are talking about a multiple increase in volumes - not even thousands, but tens of thousands of times.
What will the ad be like?
So how exactly can 5G networks change the advertising market? Many conclusions can already be drawn from the example of China.
More terminals displaying ads
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 mobile phone screen will be torn from alerts that will come from the refrigerator, washing machine, and possibly furniture and clothes. In other words, all objects around will be able to form a single intellectual infrastructure.
According to statistics, every hundred people own about 114 devices. With 5G, that number could rise to 10.
More immersion
If 3G is the era of pictures and text, and 4G is the era of short videos, then in the 5G era, online broadcasts will become the basic component of advertising. New technologies will give impetus to the development of such forms of interaction as VR and holographic projections.
What would such an ad look like? This is one of the challenges of the 5G era. Probably, work on the immersion effect will come to the fore. With advanced visualization and immersion engines, bloggers and media will be able to broadcast the environment as fully as possible, regardless of distance.
Landing pages based on HTML5 instead of applications
Why download an application if you can access a cloud page in a couple of seconds and close it immediately after you perform the desired action?
This principle applies to all software. Why download something when you can get instant access to any resource?
At the same time, the development of recognition technologies will eliminate the concept of registration / entry anywhere. Why waste 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 or retina scan?
What does this mean for advertisers? The consumer analysis model will evolve towards understanding behavioral patterns. H5 pages will not have full access to personal data. Therefore, the new model must be restructured in such a way that, on the basis of only a brief act of interaction, it can 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.
Even more usability
At the end of 2018, 90 countries had more than 866 million accounts, which is 20% more than in 2017. The report shows that the mobile payments industry processed $2018 billion worth of transactions per day in 1,3 (twice as much as cash transactions). Obviously, this method will be increasingly important for ordinary consumers.
Facial recognition technology will speed up the shopping process as much as possible. In the ideal world of advertising, it will be like this: the consumer saw information about a product or service, liked it, and at the same second he gives his consent to the purchase and makes a payment. Calculations using face recognition technology have already been implemented in several large metropolitan areas.
A new round of development of virtual reality opens a new round of struggle for the client. Information about geographic location, purchase history, interests and needs - these user data and the ability to work with them will be the sellers of the future.
Solving the Fraud Problem
Fraud (from the English fraud "fraud", in online advertising - various ways of simulating or intercepting the actions necessary to fulfill the advertiser's KPI) affects advertisers, advertising networks, and marketing agencies. The last one is the hardest. They work with publishers and networks on a prepaid basis, and then wait for rewards 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 (Internet Protocol, IP). The flow of data will increase many times, but the level of transparency of the Internet will also increase. Thus, the problem of fraud will be solved at the deepest level of the underlying data code.
Over 90% of traffic is video
The transmission speed in 5G networks will reach 10 Gbps. This means that mobile phone users can download HD movies in less than a second. PwC's China Entertainment and Media Industry Outlook 2019-2023 highlights two key benefits of moving to 5G: increased bandwidth and minimal latency. According to Intel and Ovum, the traffic of each 5G user should increase to 2028 GB per month by 84,4.
Short videos are a separate branch of production and promotion.
The number of short videos is growing rapidly. In the field of video advertising, a complete production chain of content planning, video filming, post-production, advertising and data monitoring has already been formed.
By conservative estimates, there are now tens of thousands of advertising agencies in China alone that produce short videos. There will be even more of them, and production will become cheaper at times.
There are many short videos, but this explosive growth raises a lot of questions for advertisers: where is art, and where is spam? With the advent of 5G, there will be even more platforms to host them, 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 backbone of the business of the future
As 5G technology matures, artificial intelligence will no longer depend on the hardware environment. It will be possible to use the computing power of data processing centers anywhere and at any time.
Creative directors will be able to collect a huge amount of data about consumers from all over the world, and artificial intelligence, through self-learning, will be able to suggest concepts for potentially successful texts, advertising layouts, product designs, websites, etc. All this will take seconds.
On November 11, 2017, during the world-famous Singles Day (a modern Chinese holiday celebrated on November 11), the Alibaba platform was already running the "designer killer" AI Luban, an algorithm that can create 8 banners every second without any repetition. Is your designer weak?
Games are the largest advertisers and the most important media platforms
In 2018, actual sales revenue in the Chinese gaming market reached $30,5 billion, up 5,3% from 2017. With the advent of 5G, the gaming industry will make a new breakthrough 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 you can play. Many of them require high-quality hardware to run. In a more advanced 5G world, users will be able to play any game on any device using remote servers, including smartphones that are sure to get even thinner.
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Many of yesterday's revolutions seem everyday and natural today. In 2013 active Internet users in the world about 2,74 billion people. By June 30, 2019, this figure, according to Internet World Stats (IWS), to 4,5 billion. In 2016, StatCounter recorded an important technological shift: the number of Internet connections using mobile devices the number of accesses to the global network from personal computers. Until recently, 4G technology seemed like a breakthrough, but very soon 5G will become an everyday phenomenon.
Source: habr.com