The dawn of 5G promises to solve a number of problems for marketers, but as the launch of the technology looms sooner than expected, brands struggle to find the most profitable use cases.
For marketers, a faster network opens the door to interactive ad strategies that would not have been possible on slower networks. The use of embedded AR and VR ads, for example, may become more common as 5G would be able to handle the load.
On mobile devices, 53 percent of users will abandon a page if it takes more than three seconds to load, Google found recently.
Much like the IoT and VR, marketers can dream up any number of possible use cases for 5G, but the “next big thing” may not have been invented yet.
“There’s going to be a new class of companies that are going to show up because of this transition,” Drew Henry, senior vice president and general manager of infrastructure at ARM told Venture Beat. “There’s going to be big IPOs, maybe some of the biggest we’ve seen. It’s going to be fun.”
The communication technology industry desperately needs something new and exciting to boost consumer adoption. Smartphone sales dropped for the first time ever in the fourth quarter of 2017, according to Gartner. As phones get more expensive and offer more features, consumers are holding on to them longer, resulting in a drop of 5.6 percent for smartphone sales.
By extension, brands and retailers that partner with handset manufacturers feel the pinch as well—and shiny new 5G options could be just the thing to get customers back in the stores.
Handset manufacturers are looking for a 5G hook beyond speed alone.
“The big issue is if 5G can make money for us,” KT executive vice president HongBeomJeon said during an Intel event at MWC on Sunday. “It’s not only the technical issues. It’s the business issues. At the Olympics, we demonstrated many interesting applications. But we don’t know what is the killer application for 5G.”
Massive amounts of data being processed is good news for AI providers—and for marketers as well, depending on what information is gleaned from that data. Targeted marketing efforts stand to benefit from new information gathered, but only if marketers know what to do with all that data.