December 18, 2019

5G's Impact on Marketing in 2020: Trends and Predictions

2019 witnessed the emergence of 5G in its commercial usage capacity. With 2020 just around the corner, let’s look at the trends and predictions about how 5G will impact marketing in the future.

The impact of 5G will be inevitable across different industries. The rapid growth of technologies, such as the internet of things (IoT), immersive technology, artificial intelligence (AI), and the rise of 5G could lead to great things for marketers.

As marketers are bracing themselves for 2020, let’s look at the trends and predictions surrounding 5G’s impact on marketing.

5G’s Impact on Marketing: 3 Trends

Here are three key trends that will define the impact of 5G on marketing:

1. Demand surge in 5G mobile devices

5G will continue to be a novelty as 2020 begins, and after much controversy and debate that happened in 2019, users will want to experience it firsthand. This means there will be a high demand for 5G-enabled smartphones.

This changing behavior will require brands to rethink their mobile experience. Here are a few trends that will take center stage:

  1. Brands will prioritize website speed optimization and performance. 5G’s low latency network will easily distinguish poor-performing websites. Google Chrome’s mobile app has already started notifying users if a website is slow to load.
  2. Brands will create more ephemeral content and focus more on mobile-only platforms to drive engagement.
  3. As the usage of social media, video games, etc. will grow, advertising needs to become more niche/platform specific. Marketers will compartmentalize ad campaigns and targeting strategies for specific social media platforms and apps/games.
2. The true potential of high-res videos

Verizon Media surveyed advertisers and customers to understand the impact 5G will have from their perspectives. Here are three key findings:

  1. 72% are looking forward to faster data transfer speeds
  2. 57% are excited to stream HD video content
  3. 54% want better quality video streaming experience
One of the biggest obstacles preventing marketers from doubling down on videos is the page load speed. 4G networks are fast, but lag issues still creep up when streaming videos. 5G, on the other hand, will reduce the buffer time to nil.

Video advertising will be the biggest beneficiary of this. Brands will fully embrace video and make it a primary component of their advertising strategy. According to eMarketer, the digital video ad spend in the U.S. alone will go up to $22.18 billion.

3. Content creation for smartphone usage

There’s a difference between how users use a computer and smartphone. Desktop search queries can be more elaborate, whereas smartphone usage is more “in the moment.”

Keeping this in mind, marketers will create content that is more suitable for mobile devices. The content will be created around screenless searches (voice search and digital assistants) and micro-moments (I want to go, know, do, or buy). Therefore, the content will be more conversational and FAQ-themed to help users find information on the go.

5G’s Impact on Marketing: 3 Predictions

"While it’s still too early to determine all of the ways 5G will impact retail, the sky's the limit on how this technology can improve and enhance the customer experience, and so it's important that retailers prepare by understanding the various types of 5G networking capabilities.”

~ Sunil Kumar, CEO and co-Founder, GroundTruth, exclusively to MarTech Advisor

Here are three potential impacts of 5G on marketing that we can expect in 2020:

1. IoT and Advertising

The biggest strength of IoT and wearable technology is the depth of personalization, and organizations can immensely benefit from it as 5G adoption grows. Connected devices are a data goldmine for advertisers. This can enable advertisers to run personalized, contextual, and location-based ads.

5G and IoT combined can up the ante through real-time ads. For instance, if you are near a supermarket you regularly shop at, location-based ads or push notifications can show you a list of groceries you can buy based on your historical data and consumption patterns.

2. Brands Will Dive Into Immersive Technologies

The last few years have seen brands experimenting with augmented reality (AR) and virtual reality (VR). One of the primary reasons why AR, VR, and all forms of extended reality (XR) haven’t become mainstream yet is because these technologies need high bandwidth, low latency network to deliver an optimal experience.

With the introduction of 5G, marketers can experiment more with these technologies to make the customer experience and buyer journey more immersive and interactive.

3. Better Customer Experience (CX)

5G will increase the utility of smartphone and IoT devices in users’ lives. Hyper-personalized content delivery, high-bandwidth digital experiences, faster websites will ensure the CX is exceptional. It’s also predicted that the usage of ad blockers will go down, allowing advertisers to serve ads effectively.

Parting Words

There’s still plenty of time for 5G to become mainstream. Also, the data usage limit or the pricing for 5G data plans could be a challenge, which marketers need to take into account. But that shouldn’t deter brands from being creative, right?

Copyright 2019 MarTech Advisor. All rights reserved. From By Indrajeet Deshpande, Contributor, Ziff Davis B2B.

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