5G is on its way, and it will change digital advertising in more ways than one. Are you ready for what’s next?
When 4G came about, video streaming, app stores, programmatic auctions and an entry point to virtual reality, augmented reality and artificial intelligence took the digital advertising world by storm. With 5G on the horizon, advertisers and publishers should expect much more!
The Need for Speed
Visitors to websites currently experience a slight delay before a server responds, resulting in milliseconds to seconds of waiting for a page to load. It’s an issue that causes some customers to bounce from websites. But 5G will eliminate this delay, resulting in faster load times and happier users. The FCC states that 5G is 1,000 times faster than 4%, with 100 times less latency. One reason why adoption of ad blockers has become particularly popular is because web pages load much faster when ads don’t need to be loaded. With the increased speed of 5G, many experts say that the use of ad blockers would begin to diminish.
Time to Get Personal
5G will also be able to process more data, allowing for the use of higher-resolution ads and 4K video, and furthering the ability to personalize content in real time. With faster load times and higher resolutions, publishers and advertisers predict a new range of ad formats and pricing options moving forward.
Advertisers will have the option to get more granular with retargeting and hypertargeting, with an expansion in the depth of how advertisers communicate to consumers. While all of these things may seem like a win-win advertisers and audiences, one thing that will need to change to keep pace with 5G data processing speeds is programmatic auctions.
Higher speeds will change more than just mobile and desktop screens. All internet-connected devices will benefit from the speed change, and advertisers will have the ability to personalize their messaging to any device or screen, no matter the place or time.
The 5G Price Tag
The U.S. market is ramping up for the delivery of 5G, as consumer demand is already growing for 4K video and instantaneous experiences. AT&T is one company in particular that is leading the charge, with plans to roll out 5G to a dozen markets by late 2018. But it comes with a hefty price – as Sprint has estimated it needs to spend around $25 billion to deploy 5G just in the highly populated areas.
Given the expense of deploying 5G and the fact that hardware that can handle the speeds of 5G still needs to be developed, marketers should expect 5G’s initial impact on advertising to be minimal over the course of the next year. But, there is potential for sweeping changes after that.
So, while 5G will likely not affect your advertising strategy in the immediate future, it’s time to prepare for the future potential this new technology will have on the digital advertising industry.