This week’s announcement that Telstra has become one of the first Telcos in the world to switch on 5G technology was likely not a big deal for most Australians.
Upon hearing phrases like “selected areas of the Gold Coast” and “the ongoing testing of next generation mobile technologies”, they likely turned their attention to other news – the information that affects them right here, right now.
Little do they realise, however, that there is so much more to this development than meets the eye.
We’re at the forefront of a game-changing moment in the advertising industry – one that will have huge implications for brands, agencies, and the everyday Aussies who don’t know their metagigs from their metabytes.
After all, speed is everything when it comes to the internet, and Telstra’s recent 5G trials on the Gold Coast achieved network speeds of about 3Gbps.
To put that in perspective, 4G commonly achieves speeds between 20Mbps and 50Mbps. That’s right – we’re talking network speeds 60 times faster than 4G.
And in the world of digital advertising, that type of upgrade will not only monumentally impact TV and mobile but will also bring the Internet of Things (IoT) into the industry conversation.
Television
The promise of 5G is certain to accelerate the shift to all things streaming and become the greatest challenge traditional linear television has faced to date.
With 5G, gone will be the days of waiting for a technician to arrive at home and connect the cable. No longer will broadcasters dictate what and when viewers watch.
Rather, in the new world of 5G, companies will send customers a small device that wirelessly connects to the internet and their television, providing immediate access to digital content.
It’s a feat many Australians are already enjoying, as they reap the joys of on-demand viewing. But the arrival of 5G will expedite its push into everyday life, as all devices will have the ability to stream content instantaneously.
And as consumer streaming behaviour continues to shift, business models are evolving simultaneously - as evident by AT&T’s recent M&A strategy.
The company already boasts a 5G network. And now, thanks to its acquisitions of Time Warner and AppNexus, AT&T not only provides the content, itself, but has the software platform it needed to monetise it.
This evolution isn’t limited to AT&T. Similar activity is happening with Disney’s recent acquisition of 21st Century Fox to be used for Hulu content.
And let’s not forget the local Nine/Fairfax deal with Stan. It’s possible the largest land grabs in media history are happening right now.
As 5G becomes the norm, I believe we will increasingly see a mixture of subscription and advertising-funded models across the likes of Netflix, Hulu, and Spotify.
Indeed, Spotify has already proven that consumers are willing to value ads if it means they can have free content on-demand.
For digital advertisers, the growing adoption of streaming means the ability to tap into more digital data – both contextual and behavioural.
And the result is two-fold: brands will target individual viewers and households programmatically with more relevant TV ads than ever thought possible, and consumers will experience better advertising than ever before.
Mobile and The Internet of Things
Mobile is already the dominant screen in our lives. But imagine a world where mobile data is faster and more reliable than even plugging into an Ethernet cable.
With 5G, such a world is finally within reach, and the flow-on effect for how we live our digital lives will be immense.
After all, with instantaneous streaming and the ability to consume media anywhere and at any time, there will be little to no reason to use a desktop or laptop for anything other than work.
5G also opens up the opportunity for seamless augmented reality (AR) and virtual reality (VR), pushing the boundaries for what mobile advertising can deliver.
The real-time signals 5G brings with it empowers brands with better targeting, buying and reporting of their media campaigns across all connected devices. For example,
I envisage a future where an IoT vending machine can send real-time stock levels to a DSP. And based on sales performance, the brand can adjust which creatives it shows for specific locations.
And, we mustn’t forget all the new digital channels that will be made available by such incredibly fast network speeds. You only have to look at smart speakers to see how quickly an IoT device can be utilised as an advertising medium.
So, given Telstra’s 5G roll-out is restricted to parts of the Gold Coast for now, it’s still a little early to say the future has arrived. That said, there’s no doubt it is fast approaching – exciting news for brands, agencies and Australia’s everyday digital consumer alike.