impacts of 5g

5 revolutionary changes in consumer behaviour due to 5G

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The internet you knew is fading out, coming into reality is the next generation of the internet: 5G.

Every company is aligning its strategies to 5G’s requirements. Experts expect 5G to show several changes in consumer behaviour and digital marketimg.


A D V E R T I S E M E N T

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Every company in the US, and an increasing number of those around the world, have realized the need for Digital Marketing. Especially after the pandemic, which has affected the lives of billions of people around the world.

Consumers now prefer to make their transactions from home. The revolutionary technology, 5G, with its greater reach and impact, will make targeting those digital consumers easy with digital marketing campaigns. This increases the need for digital marketing activities by companies.

I will discuss the effects and benefits on digital marketing and changes 5G will have on consumer behavior

Let’s first discuss what is 5G, what does it stands for,  and why it is such a big deal.

what does ‘g’ stands for in 5g 

The ‘g’ in 5g simply means generation. This technology is the fifth generation of cellular internet.  Before it, four generations of cellular internet have passed. Companies started to adopt 5G in 2019.

Forest Interactive predicts that by 2025, 5G networks will have over 1.7 billion subscribers worldwide. A 268.75% increase from that in 2021.

What will 5G bring that its predecessors have not brought? It brings faster speed and more latency. This will set the foundation for advanced uses, which allows faster downloads for videos, games, and music.

Cisco published its forecasts in internet traffic from 2017 to 2021. It estimates that by 2022, mobile connections with 5G will support 8 billion mobile devices and 4 billion IoT connections. These stats are almost double from what it were in 2017. Cisco notes that the world had 5 billion mobile users in 2017.

When it comes to speed, 5G will be 10 to 20 times faster than its predecessor 4G LTE networks. The highest speed we by the 4G LTE network was around 20 mbps. In comparison, 5G network will with 1.5 Gbps.

Those were a few of the benefits 5G brings, now we will know how it will affect Digital Marketing landscape in this post.

video advertising:

The fifth generation of the internet, 5G, will affect media and entertainment. Videos are trusted method to increase brand awareness. Visual media, thus, is a reliable way of increasing customer engagement. In addition, the brand message enjoys more exposure if communicated with videos.

The new technology brings lightning fast speed this implies videos will lack lagging and buffering will become history. We’ll miss the wait!. Reduced buffering means more video consumption and greater change to give brand messages.

The 5G technology comes with more data transfer. The new technology could easily transfer Ultra High-Definitioln (UHD) or 4K videos. Cisco estimates that the use of Flat Panel TV sets with UHD will surpass 60% (62%) in 2022 from 23% in 2017.

Increasing video definitions by 2022

Dramatic increase of videos on mobiles

More speed with less to no buffering will cause more use of mobile phones. Cisco estimates that the total Internet traffic from mobile phone will increase to 50%. Video will have greater share in that traffic.

Global IP traffic by devices

In simple words, this means that, by 2022, people will prefer to use videos in their mobile phones rather in PCs.

ؒlet’s dig deeper into how the new technoloty will impacct Marketing and advertising. 

Personalization

A factor which will make differences will be customer experience. It will become easier for business to personalize customer experience with the 5G technology.

Retailers could offer discounts to customers who refuse to purchase their products. For example, a California-based startup Adroit Worldwide Media (AWM) Smart Shelf is working on a system which will personalize customer experience in stores based on whether and what they pick. If a customer picks up a product but changes his mind and puts it back, the system will recognize that behavior and the retailer could offer a discount beneath that item for future buyers.

“It is taking the personalization and that customization that you would have by shopping online and applying that to brick and mortar,” said co founder & SVP AWS smart Shelf, Kurtis Van Horn

Targeted consumers

Advertisers could offer products based on the gender, race, and mood of customers. Nokia, a Finland-based mobile-phone manufacturer plans to target 4G customers with 5Gupgrade software.

Acceleration in mobile ecommerce

The trend push companies to offer robust experiences. With 5G, companies could make offering based on consumers’ personalized profiles.

mobile eommerce

By 2022, more people will have access to a smartphone. People are increasingly willing to spend more time on shopping with their mobile-phones. This behavior is expected to speed up with the use of 5G.

AR and VR

5G Networks rely on two things to applications. Augmented Reality and Virtual Reality technologies include those essential things: fast data transfer and reduced latency.

Latency is the time a packet of data takes to reach from point A to B. AR and VR need Latency in a single digit which 4G LTE cannot offer, it’s just impossible for it!

man wearing virtual reality  (vr)  headset

Latency on 5G network is 1ms. In comparison, that on 4G LTE was noted to be between 48.6ms and 56.1ms in the US by Opensignal.

With AR and VR, users can visualize what the product will look like in their home before deciding to buy that item.

Says Prince, “Imagine a product like a full-size couch in hyper detail that you can place in your room. With 5G, we will be able to provide the couch, the room and everything in it, toss in a realistic human avatar with artificial intelligence that walks into the scene and helps end user with any information needed to complete the purchase.”

Brands such as Amazon, Ikea, and Estee Lauder have already started using AR and VR to provide better customer experiences.

Impulse-friendly buying experience: 

Brands can influence impulsive buying with the use of AR and VR in their marketing campaigns. For instance, brands like GAP implemented AR and VR to enhance customer experience with their “Dressing Room by Gap” app. This application allows users to “try on” different clothing items, view the garment from multiple angels, and purchase the item from their device.

A shopping mall

Final Words

With 5G, it will be easier for companies to target customers. The 5G mobile internet will take revolutionize digital marketing and will take it to the next level,

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