Tag Archive: mobile

  1. 5G is coming – here’s what it means for marketers

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    AT&T and Verizon have announced 5G-enabled smartphones with Samsung for 2019 – 5G is here. Where will the new super-fast mobile internet connectivity take us?

    This week, both Verizon and AT&T have announced that they will launch 5G-enabled Samsung smartphones in 2019 – in fact, AT&T are launching two. 5G has been on the lips and the minds of the tech, communications and advertising industries for a while, promising as it does almost unimaginable opportunities. Earlier this year, AT&T launched its 5G mobile hotspot in a few cities across the US, but this week’s news makes it mainstream and a reality for consumers – and therefore marketers – across the world. So where will it lead?

    Higher speeds and happier consumers

    What makes 5G so revolutionary is its speed. 4G, which was launched in 2011, brought about video streaming, programmatic auctions and the first glimpses of augmented and virtual reality. 5G is 1000 times faster than 4G with 100 times less latency, effectively eliminating any delays. Often, if a consumer experiences a delay loading a webpage, they will give up, meaning the loss of a touchpoint for the brand. It could also lead to a decrease in the use of ad blockers, which consumers often use to avoid slow loading times; if webpages are loading more quickly, they may be less inclined to use them.

    The sheer speed of 5G means that it will be a viable and affordable alternative to home broadband. In the US, Verizon is looking at disrupting home broadband, particularly in areas where there isn’t much competition for local broadband providers. As Gartner’s Mark Hung remarked, ‘if 5G is able to create more competition in that space, then that could lead to more cord-cutters’ – and that of course has implications for marketers.

    Out of home will also benefit from the speed of 5G. A Digiday article relates how out of home advertising company Outfront plans to use 5G to distribute dynamic video to screens, which will be able to react to the viewers passing them.

    Deeper interactions with consumers – which means more data

    The increased speed of 5G compared to 4G means that technology applications which have hitherto seemed far-fetched are suddenly becoming realistic. These applications often provide much more immersive and meaningful experiences for consumers – and that means richer data sets for advertisers. Augmented reality (AR) and virtual reality (VR), for example, will become more normal ways for brands to interact with their consumers. AdWeek suggests that home decor

    brands could use immersive AR to show customers what an item of furniture would look like in their houses, while sports and music fans will be able to ‘attend’ games and gigs via their VR headsets; indeed, LiveNation and NextVR have already done this, and widespread 5G will only make the user experience better.

    Meanwhile, increased speeds and higher connectivity will mean that the Internet of Things becomes exponentially more powerful and useful. Hyper-connected devices will communicate with one other, giving the consumer increased convenience and control over their lives in the context of autonomous cars, connected homes, connected cities, connected healthcare and so many others. These networks of connected devices will generate a wealth of data on the consumer’s behaviours and preferences: a veritable goldmine for brands, who will be able to create ever more personalised and targeted messaging.

    Companies are already making plans to capitalise on the launch of 5G

    Unsurprisingly, given the opportunities for deeper interactions with consumers, companies in the US and worldwide are already gearing up for the delivery of 5G. For example, AT&T recently acquired Time Warner and AppNexus in order to ensure it was properly positioned to take advantage of the roll-out of its 5G service. Meanwhile, esports company ESL has partnered with AT&T to incorporate 5G technology into live gaming, in order to take mobile esports ‘to the next level’.

    5G may also have another effect. With telco companies coming into possession of such an unprecedented amount of consumer data, they may start being able to challenge the digital ad services duopoly currently held by Google and Facebook.

    We’ve looked at only a few of the opportunities presented by the arrival of 5G; indeed, there are many that the world hasn’t even imagined yet. It will change the world perhaps even more fundamentally than 4G did, and make the seemingly fantastical – for both consumers and advertisers – a reality.

    Thumbnail image: Shutterstock

  2. Does mobile pose a threat to TV?

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    Audiences appear to be increasingly consuming video on their mobile devices. What does that mean for TV?

    A few weeks ago, we posted a blog asking if video streaming spelled the end of the TV industry as we know it. We concluded that TV would survive – even thrive – as long as it adapts and innovates. But the medium is not just fighting a battle on one front: mobile is another contender for the throne.

    The mobile decade

    Arguably, nothing has changed the face of media consumption – and therefore advertising – over the last decade as much as mobile. The statistics are familiar: in many developed countries, smartphone penetration is at around 70%, and mobile connection statistics tell a similar story: in 2008, there were 4.02 billion mobile connections globally, while in 2018 this had more than doubled to 8.53 billion – and in 2020 the figure is projected to be 9.02 billion. Human beings are duly becoming more reliant on their phones: in the UK for example, people spend around 24 hours a week on them, on average, and check them every 12 minutes, and this trend is reflected around the world. The mobile phone has replaced the television as the media device that we most miss; in 2007, 52% most missed the TV, while 13% missed their phone the most. 11 years later, the figures were 28% and 46% respectively.

    A bleak future for TV?

    Indeed, you could be forgiven for believing that the growth of mobile means a bleak future for linear TV. The young, mobile generation are increasingly tending to stream video content instead of watching traditional linear TV, and often do so on a mobile device. Many tech companies have noted this and are acting upon it: in June, CBS announced that it will be streaming NFL games on mobile devices from this autumn, while, shortly after closing their acquisition of Time Warner, AT&T announced the launch of their new mobile streaming service, Watch TV. These services will no doubt be popular, thanks in part to the smaller ad load for content streamed on a mobile.

    TV is still the most popular medium for video consumption

    However, Nielsen data released this week suggests that mobile is not denting TV’s success as much as it seems. Of 5.57 hours a day that US adults spent watching video in quarter one of this year, 4.46 of those were on live or time-shifted TV, while only 15 minutes were on a smartphone or tablet. Young people aged 18-34 were the only demographic who spent longer on a tablet or smartphone consuming general content (not just video) than on a TV. What’s more, even those households that don’t have a traditional TV don’t rely on their mobile devices to watch TV programming: 27% use a computer and 30% go elsewhere (to a friend’s or public place), compared to 16% using a mobile device.

    TV versus mobile in the future

    Will this change as the young, mobile generation grow older and take their mobile habits with them, replacing the more stagnant habits of older people? Or will they change their habits as they age to reflect those of their parents? Will increasing concern around mobile addiction and interest in digital detoxes encourage people to put their phones down and switch their attention to television? Time will answer all these questions, but we believe that TV is here to stay. One commentator said that ‘mobile is a wart on the ass of TV’: while we think that mobile is more significant in the video space than that, we can’t imagine that consumers will transform viewing habits so much that they will choose en masse to watch long-form content on a mobile over their television. TV is safe for now but, as always, needs to innovate and adapt to stay ahead of the game.

    Thumbnail image: Lolostock/Shutterstock.com