5G and its impact on digital advertising | HCLTech

5G and its impact on digital advertising

February 09, 2023
Priyadarshi Das


Priyadarshi Das
Executive Vice President
February 09, 2023

The year 2022 saw 5G becoming a ground reality from being imminent for many countries. As nearly  100 countries have rolled out the next-generation network last year, this year will be more about its proliferation. Estimated to have more than a billion active users already, 5G is proving the hype around it to be true. The year 2023 will see companies that primarily depend on telecom network battle for early adoption and market supremacy. While OTT, gaming, and sports industries are typically the center of discussion on 5G, digital advertising is another front that will gain tremendously from the next-generation network.

Five ways 5G will revolutionize digital advertising

There was a time when advertisements were printed or televised. Then they became digitized but static. Today, video and motion graphics are integral to most advertising strategies. The proliferation of 5G will boost the evolution of digital advertising and take it to a whole new level in 2023 with:  

5G has something great to offer for every industry. Explore how it will impact the digital advertising industry.

Metaverse: Being compared with the internet for its revolutionary and radical characteristics, metaverse heavily depends on the network to deliver on its promises. With 5G, advertisers can leverage metaverse to transform advertising from short, product/service-specific content (video/text/graphics) to persistent experience for their target audiences.

Real-time: Up to 100 times faster than its predecessor, 5G will pave the way for real-time or near-real-time experiences in the true sense. This will allow companies to launch targeted advertisements (location-based/time-based/activity-based) appearing on peoples’ devices when they are most receptive instead of today’s generic, one-size-fits-all campaigns.

AR/VR/XR: Advertising is all about presenting your products/services to the masses in the best way and in the shortest time possible. AR/VR/XR is, therefore, imperative for effective advertising. 5G will enable advertisers to demonstrate products/services more effectively and engagingly in a shorter time span with the help of AR/VR/XR.

Interactivity: To date, advertisements have mostly been one-way communication. A major reason is people’s attention span. Advertisers must hold their audiences’ attention and deliver the message quickly, lest they skip the advertisement. However, the exponentially high speed of 5G will let them make advertisements interactive, and thereby, more engaging and effective.

Efficiency: 5G will boost the advertising efficiency of businesses. They will be able to reach a much wider audience base much more effectively by leveraging metaverse, AR/VR/XR, and other network-dependent innovations. Making advertisements interactive and sending them in a targeted manner in real-time will allow businesses to communicate more in less, resulting in higher success rates.

Telcos worldwide are battling for supremacy in the 5G arena. In countries where the next-generation network is yet to be launched, they are testing their infrastructure and are on their toes to take the lead. Technology vendors are complementing with relentless innovations too. 2023 already appears exciting in more than one way. It remains to be seen how digital advertising companies will harness the potential of 5G and revolutionize advertising.

In-game marketing and merchandising: By 2023, it has been projected that 66% of all global marketing expenditure will be utilized by digital advertising, and the metaverse is expected to play a key role. The metaverse is transforming gaming cyberspace into an engaging and interactive 3D platform through immersive environments.

One of the emerging trends in the virtual gaming space is in-game marketing and merchandising. Metaverse gaming provides enterprises with the opportunity to run embedded merchandising campaigns, where players have the option to virtually purchase merchandise like unique clothing, accessories and wearable NFTs for their digital avatars.

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