Mobco CEO on future of AdTech Industry post-Corona

Mobco CEO on future of AdTech Industry post-Corona

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  • 5G
December 8, 2019

5G Connectivity:
The Gateway to a New Ad Experience

By Niv Sofer

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  • 5G
  • AdTechIndustry
  • CMP
  • COVID-19
  • Data
  • EU
  • Future
  • GDPR
  • Privacy
  • Spotlight

With data rates of up to 10 gigabytes per second, 5G is positioned to be 100 times faster than 4G.  This increased connectivity coupled with a decrease in latency opens a wealth of new possibilities.  

The Ad Tech Industry is no stranger to innovative concepts that have gone on to revolutionize its ecosystem. It has recurrently witnessed waves of technological advances that have propelled the Industry to new paradigms. Ad Tech now stands on the cusp of yet another revolution that promises to be the game-changer for the Industry – 5G. 

Market Expansion: A part and parcel of 5G

Currently, there are over 5 billion mobile phone users across the globe, of which, half of these own smartphones. With the hype surrounding 5G and its various offerings, it provides fertile ground for businesses to provide new services that appeal to the public. The packaging of faster data connectivity, exciting products and apps, buffer-free content and a host of other possibilities will consequently see a rise in the number of people online. Simply put, the future 5G promises opens a plethora of possibilities that will bring with it an expansion in the global online market. 

‘Connected’: Anything, Anywhere. 

The impressive speed and connectivity of 5G are touted not only to facilitate cross-device connection, but also capable of bridging these connections with the Internet. While this would take the Industry to a new playing field, will 5G be the pivotal factor that helps the Internet of Things (IoT) realize its potential? While that is a question that only time can answer, the cards seem to line up in its favor. 

5G is set to enable the betterment of existing smart devices and the connection of other home appliances and devices to the internet. The sure quality of 5G also allows for DOOH displays to be ‘connected’. What does this mean? Each device becomes a medium of communication and forms a bridge between the advertiser and consumer. It enables two-way communication of ‘want’ and ‘supply’. This exchange of data facilitates better ad targeting in real-time based on consumer behaviour. The availability of multiple devices also allows for the use of creative and interactive ad formats. 

A New Viewing Experience

While the connectivity of 5G allows for the use of multiple devices as mediums of reach, its amplified speed will help overcome the previously held limitations of 4G. 

Unlike its predecessors, 5G can seamlessly host and display formats such as Interactive Rich Media. The minimal latency and quick response time translate to an uninterrupted ad viewing experience which is more likely to result in conversions. 

One of the most anticipated outcomes of 5G is the use of Augmented Reality (AR), Virtual Reality (VR), and 3D Holographic Display technology. While these technologies have been in exitance for a few years, they have not been utilized to their fullest potential in Online Advertising owing largely to the issues with speed. However, now, with 5G’s boosted speed and connectivity, advertisers are gearing to explore the creative possibilities and use of AR and VR in their advertising efforts. With 5G’s enhanced speed, quicker processing time, and higher resolution, one can only speculate on future ad formats to come. 

The Answer to Ad Blockers

Video has and continues to be a popular ad format. According to a report from HubSpot Research, over 54% of consumers prefer to watch video ads from brands. Further, Cisco projects that by 2022, video IP traffic will count for over 82% of all IP traffic. While the numbers speak for themselves, 5G is set to thrust the video ad experience to greater heights.

 One of the greatest challenges Video Advertisers face is the ongoing use of Ad Blockers. According to a report by HubSpot research, 36% of 731 ad blocker users in the US, UK, Germany, and France, stated that they use Ad Blockers because of poor lag time in videos. In 2015 alone, over $22 billion in revenue was lost due to Ad Blockers, while Ovum predicts that by 2020, $35 billion will be lost in revenue. 

Although the numbers look bleak, 5G is set to tackle the challenge of Ad Blockers head-on. The enhanced speed, reduced latency, and quick processing time to set to aid for an uninterrupted and buffer-free viewing experience. 

While the Ad Tech Industry anxiously awaits the launch of 5G, the road ahead is not without hurdles. Data Privacy is a topic of interest that has been brought up repeatedly. While 5G has the capability of connecting hosts of devices to the internet, the information contained on those devices and its use becomes a matter of concern. 

One thing is certain, 5G is positioned to be the game-changer in the Ad Tech Industry. The possibilities promise a new age in the creation, presentation, and experience of Ads.

In my opinion, 5G will be one of the most significant milestones in Digital Advertising. Not only will it birth new types of media, but it will also elevate the users’ experience through cross platforms and channels. Brands that implement 5G in their business models will be sure to reap its rewards!  

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