Summary: How will 5G change digital advertising? Five ways: from enhancing mobile video consumption and interactivity to incorporating AI and immersive technologies like AR and VR, 5G’s capabilities will provide marketers with tools for creating personalized and engaging content. We discuss how real-time data and faster speeds will make advertising more targeted and efficient, marking 5G as the next big revolution in digital advertising.
With the advent of social media platforms and broadband Wi-Fi, digital advertising has seen tremendous changes in the last ten years. With previously unheard-of possibilities for audience engagement, consumer touch points, and communication, 5G technology is poised to spearhead the next wave of revolution. Intel estimates that by 2025, the media and entertainment sectors would be vying for $1.3 trillion in revenue prospects, largely due to 5G’s capabilities.
Advertisers will have access to quicker, more immersive, and interactive formats as 5G networks offer speeds up to 1,000 times faster than existing 4G connections and download speeds of up to 20 GB per second. We will go into the possible changes and opportunities that this technology presents in this blog post as we examine Five Ways 5G Will Change Digital Advertising.
As Steve Koenig, VP of Research at the Consumer Technology Association, aptly said, “5G will be the backbone of future digital advertising, enabling new levels of personalization and engagement that weren’t possible before.”
Table of Contents:
- The Rise of Mobile Video Consumption
- Enhanced Interactivity in Ads
- AI Integration with 5G for Video Advertising
- The Expansion of AR and VR in Ad Campaigns
- Real-Time Data and Personalization
1. The Rise of Mobile Video Consumption
Did you know that mobile devices now account for 75% of all video views? Over the past five years, this number has increased steadily. Consumers in developed economies check their phones over 150 times a day, with Generation Z and Millennials being the most frequent users—Gen Zs check their phones up to 300 times a day. Americans spend 2.5 hours a day on mobile media on average, which highlights the growing significance of mobile video consumption.
Advertising firms are taking advantage of this trend by providing high-quality content on websites, mobile applications, and social media platforms. Brands will be able to broadcast high-quality video advertisements in VR, AR, and 360-degree formats thanks to the speed and low latency of 5G technology, which will reduce buffering concerns. 83% of smartphone users, according to an Ericsson survey, anticipate that 5G will enhance their surfing experience and result in them staying on pages longer, which will make it simpler for advertising to draw in customers and increase return on investment.
2. Enhanced Interactivity in Advertising
5G’s high-speed capabilities will make digital advertising much more interactive. In the past, buffering and sluggish loading times were technological obstacles for interactive advertisements. But these restrictions will be lifted by 5G technology, giving advertisers access to rich, interactive advertisements.
Volkswagen is one real-world example, enabling people to visually explore its newest car models with AR advertisements powered by 5G. This campaign generated interest on social media and improved user engagement. Cisco predicts that 82% of internet traffic will consist of video by 2025. Brands will be able to provide smooth live streaming events, interactive video advertisements, and real-time connections with customers thanks to 5G’s lower latency and higher speeds.
3. AI Integration with 5G for Video Advertising
The use of AI to manage the client experience is another significant change that 5G technology will bring to digital advertising. AI will be crucial to automating video production as metrics and video quality increase. By 2025, editors will be able to specify triggers and content factors for the automated production of video advertisements thanks to AI-driven video workflows.
AI, for instance, will enable marketers to provide highlights in real time from live events, such as concerts and sporting events. This would improve the relevancy of the material for customers while saving time and money. As brands provide more individualized content in real-time, AI and 5G technology will increase audience engagement and campaign impact, claims Vaibhav Kakkar of Digital Wave Solutions.
4. The Expansion of AR and VR in Advertising Campaigns
The growing usage of virtual reality (VR) and augmented reality (AR) in advertising efforts is one of the most intriguing Five Ways 5G Will Change Digital Advertising. Brands will find it simpler to integrate immersive technologies into their marketing plans because of 5G’s increased capacity and faster speeds.
A PWC analysis projects that the AR and VR market will grow to $1.5 trillion by 2023. Burger King is a prime example of an augmented reality campaign that engaged customers by letting them scan a competitor’s advertisement, digitally burn it, and then receive a Burger King discount in exchange. Brands will be able to expand on these immersive experiences with 5G, which could lead to the use of holographic advertisements.
5. Real-Time Data and Personalization
The last of the five ways that 5G will change digital advertising is through improved personalization and real-time data collection. 5G technology will give advertisers access to more detailed data, enabling them to show more targeted advertisements based on users’ tastes and activities in real time.
In Australia, Coca-Cola, for instance, customized its digital billboards using real-time data driven by 5G to show audience-specific advertisements at different times of the day according to their preferences. Real-time advertising is a potent tool for upcoming campaigns because only 5G’s speed and low latency allow for this degree of personalization.
Final Thoughts:
5G technology will be transforming the future of digital advertising in ways never seen before. By providing faster speeds, greater engagement, and deeper personalization, 5G’s potential extends beyond merely improving current processes. Advertisers will be able to use immersive technologies such as AR, VR, and AI to provide engaging experiences across many platforms while adapting to the interests of various generations.
As we discussed in Five Ways 5G Will Change Digital Advertising, whether by increasing mobile video consumption, improving interactive ad formats, or providing real-time data insights, 5G technology will enable advertisers to create more dynamic and tailored campaigns. The competitive advantage resides in the effective use of these advances.
Steve Koenig once stated: “5G will be the backbone of future digital advertising, enabling new levels of personalization and engagement that weren’t possible before.” The era of traditional advertising is giving way to immersive, real-time content driven by 5G, suggesting that brands must prepare for this game-changing future.
