By 2023, the number of 5G customers is expected to hit 1 billion across the globe. North America will have 294 million 5G subscribers in the next three years, while the Asia-Pacific will have a whopping 785 million.
Despite the technology being already available, not everyone is aware of it and how it will impact a slew of industries, advertising included. This post aims to demystify what it is and how it will impact the advertising space.
5G in a nutshell
The main pillar of 5G is its speed. Also referred to as the 5th generation of wireless cellular technology, HP's primer on 5G highlights how it's blazingly fast — about 70 times faster than its predecessor 4G. Its purported speed is 10 Gbps, which is capable of downloading a two-hour HD movie in three seconds.
5G networks can deliver real-time data and file transmission regardless of where you are or the device you're using. This means better streaming, gaming, IoT, and more. Widespread adoption of 5G will change the way we watch, talk, and interact with each other and the devices we own.
The change also translates to in-app advertising, which is fast emerging as one of the most important forms of advertising. The impressive speeds delivered by 5G will undoubtedly result in massive shifts within the industry.
How 5G will disrupt in-app advertising
Enhanced audience targeting
Refined network speeds also lead to improvements in geo-capabilities, which then translates to more accurate location services. Since more devices will be able to connect to the 5G network for far longer, brands and advertisers will have a larger pool of data, allowing them to improve the way they disseminate personalized ads. They will be able to better target customers based on location, shopping activity, social media usage, and more. Then again, since real-time data capture is enabled by 5G, companies should be extra careful about utilizing customer information responsibly.
Improved ad experience
The best, high-quality ads typically take a lot of resources to load. When everyone has access to 5G, companies will be able to make more interactive ads without the worry of causing any lagging to the user’s experience. The higher the quality of the in-app ad, the less likely it is that the viewer will skip it.
As mentioned in a previous post, in-app advertising (IAA) has become a reliable source of additional income for many businesses. Faster speeds brought about by 5G will entice users to spend more time on apps, which will increase monetization. ExchangeWire notes that 5G devices are expected to represent a major performance leap for user experience on mobile devices especially with high-definition media and interactive technologies. Whether it's for mobile gaming or streaming platforms, the technology opens advertisers up to a plethora of opportunities. They will have a wider creative leeway, which then results in high-quality interactive ads on mobile devices.
New marketing entrants
With faster networks comes not only more users, but better apps as well. As such, it's almost certain that there will be more developers on the market looking to monetize their apps. Due to faster load times and higher resolutions, advertisers and publishers will be more inclined to introduce a new range of ad formats and pricing options. Ad serving and buying will likely change too, with header bidding being the norm. Smaato Chief Revenue Office Glenn Fishback points out that not only will this bring greater control and higher revenues to publishers, but will also deliver greater transparency and better results to all parties.
Exclusively written for Appodeal.com by Amber Goldstein
Main illustration by Tamuna Gogoladze