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13 Predictions about Advertising in 5G

01

The revolution brought by 5G


Roughly speaking, 2G is the era of words, 3G the era of images, and 4G the era of live and videos. In each era, a qualitative change occurs to media and form, making the ecology of advertising varying.


The implementation of 5G in the whole world has accelerated due to Huawei. At present, the equipment, chips, infrastructure and application of 5G have all been ready for the trial operation on whole.

To consumers, 5G will bring faster bandwidth speed, close-to-zero delay, and more immersive experience with higher resolution.


To advertisers, 5G can help brands establish a closer connection with consumers with greater symmetry between user information and user demands to improve the efficiency of advertising.


To the whole advertising industry, the extreme experience of 5G can improve the appearance of advertising to an unimaginable order. Faster speed means less loading time and lower bounce rate which can greatly increase the click rate and deliverability rate of online video advertising.

02

13 predictions about advertising in 5G era


Prediction 1: The intelligent advertising terminal will increase by 100 times


Due to the universal connection with chips in ultra low cost and consumption in 5G era, the mobile screen can turn to any shape. In the future, any object, a desk, a chair, a bike, a car, a washing machine, or even a clothes can be an intelligent terminal. Supported by front-projected holographic display, screens can keep changing beyond the limitation by space and carrier form.


According to current statistics, every 100 people can have 114 intelligent terminals at present. It is predicted that every 100 people can have more than 10 thousand intelligent terminals in the future.

Prediction 2: Interactive forms of advertising will increase by 1,000 times


In the era of 5G, videos and live-streaming will become the most profound scene for advertising, so the application of VR and front-projected holographic display will develop rapidly. When numerous terminals appear for advertising due to universal connection, the greatest challenge and the most interesting work will be the exploration of advertising innovation and production and the forms of interaction with users in these new scenes.


At that time, the strong interaction through immersive videos will make a great breakthrough in a unified networking environment online and offline.

Prediction 3: The promotion based on APP will be completely replaced by interactive scenes based on H5


The fast data transmission and ultra-low delay/play in the era of 5G will make “everything on cloud” come true. APP will become an H5 link when storage is not needed in mobile phones as “download” and “activate” in APP will completely disappear.


It means the original transformation model of advertising becomes meaningless. No matter advertisers are willing or not, their concern will be forced to turn on the analysis on user profile before display. 5G will break the logic of advertising transformation at present and turn the advertising transformation based on H5 interactive scenes to a mainstream.

Prediction 4: More than 90% traffic flow will be used in videos


The transmission rate in 5G era will be up to 10Gbps which means mobile users can download an HD film in less than one second. The report by Intel and Ovum predicts the average monthly traffic flow per 5G user in 2019 will be up to 11.7GB which will increase to 84.4GB in 2028. At that time, the traffic flow used in videos will account for 90% of all 5G flow. This trend means there will be more interaction between advertisers and consumers in videos.

Prediction 5: Short-video advertising will become an independent industrial chain


At present, short videos develop fast, making the release intention and marketing budget of advertisers increase every year due to its volume dividends and strong interaction. Currently, the advertising industry of short video has formed a complete chain from content planning, video shooting, post production, advertising release and data monitoring. However, due to difficulties of high requirements on creativity, unclear evaluation data and standards, long MCN incubation period, etc., the result of advertising release cannot be guaranteed. The competition becomes very fierce.


As the era of 5G coming, there will be a huge space for revolution in the platform and advertising model of short videos. An open multi-media trade platform will be established among advertisers, agents, influencers, transmission channels, short video platforms, and consumers. Meanwhile, the short-video advertising will lead a new model for crowdsourcing innovation.

Prediction 6: Marketization of ARVR and 3D front-projected holographic display


Before that the advertising information is in the form of statics and plane. In the era of 5G, we can make advertising dimensional to display it in 360°.


AR is a technology in development but it has already become a part of effective outdoor advertising strategy. Some study shows that AR can improve the participation rate of audience by 30%.

Prediction 7: Real-time interaction between advertisers and consumers


Based on 5G technology, companies can distribute dynamic videos to outdoor screens. Through the intelligent cameras and sensors, the digital screens can sensitively display brand content by determining the audiences passing by. In this way, brands can interact with consumers through the network in real time.

Prediction 8: Advertising in closed scenes will be more personalized


In private and closed scenes in lifts, cars and houses, personal advertising will be recommended accurately according to individual interests or habits. In other words, 5G can help advertisers release the most personal information in the most appropriate time.

Prediction 9: Elements of public service will account for more than half of total advertising volume


In the era of 5G, as the display screen will increase by hundreds of times, the vacant advertising posts will increase as well. At that time, the public service announcement will explode comprehensively.

Prediction 10: CPS becomes the main settlement model


The mainstream settlement models for advertising are CPM (cost per mille), CPC (cost per click), CPA (cost per action), and CPS (cost per sales). In the era of 5G, CPS will become the main settlement model because consumers will make a purchase when seeing the advertising.

Prediction 11: Multi-layer agent will disappear


In the era of 5G, technology and algorithm will become the core competitiveness of advertising platforms while channels and settlement will be completely digitalized. Thus, the advertising media will show the obvious trend of “decentralization”. It means the multi-layer advertising agent will disappear when the rules of interest division will completely change.

Prediction 12: Integration of advertising, marketing, branding and public relation


In April this year, the largest Party A in the world, P&G announced the establishment of its own advertising company. This is a huge challenge to traditional “AOR”. Such a process is to improve the efficiency, making the whole process and results more transparent and controllable.

Prediction 13: The ability of advertisers will be redefined


In the era of 5G, mobile equipment will have the same data calculation ability with server while the local compatibility can be for advertising with higher resolution. Universal connection also means various equipment which challenge the traditional business model at present.


Thus, 5G era will bring over 100 times of increment in advertising industry. More than 70% staff in advertising face the reconstruction threat caused by unemployment.


Edited and translated according to an article by Hua Ge

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