What does 5G bring in for advertisers?

With the 5G rollout by the top 2 telecom players in the country nearly complete, the A&M industry readies itself for a change in advertising technology

by Anjana Naskar
Published - March 04, 2024
15 minutes To Read
What does 5G bring in for advertisers?

In an age where connectivity fuels innovation and redefines industries, the potential of 5G technology looms large on the horizon, casting a transformative glow on marketing. It is said that ‘the future is 5G,’ and according to a report by Deloitte, India’s Digital economy is expected to reach USD 1 trillion by 2025, thanks to the impact of 5G. Also, in FY25, revenues are projected to reach USD 3.4 billion within the telecommunications sector, dominated by just three private players: Jio, Bharti Airtel, and Vodafone Idea (Vi). Amidst other things, this growth is also attributed to the increased migration from 2G to more lucrative 5G services. While Jio has already completed its pan-India 5G rollout in December last year, Airtel has launched its 5G network in all 22 Indian telecom circles and is looking to cover 7,000 towns and 1,00,000 villages by March 2024.

As the world embraces this next-generation connectivity, the ripple effects are being felt across every facet of brand communication, from campaign delivery to creative problem-solving. Moreover, 5G can also act as an accelerant for creative endeavours, creating a bridge between consumers and brands, and as a catalyst for reimagining strategies that have long defined the industry. From campaigns that pivot at the speed of thought to brands that leapfrog hurdles with the power of real-time solutions, let’s find out how 5G is rewriting the playbook, fortifying the old and propelling the new, to ultimately reshape the very face of marketing and advertising.

“One of the most significant ways the Internet has changed the ad industry is by giving advertisers access to a global audience. With 5G at the centre, Digital advertising plays a crucial role in delivering immersive and personalised experiences on mobile and also provides precise location data that will drive disruptive advertising experiences. High-quality audio, visual and voice-based experiences will further lead to a mobile-first approach. All these would have taken a back seat without 5G in the game,” asserts Vishal Chinchankar, CEO, Madison Digital & Madison Media Alpha.

ROLE OF 5G IN ADVERTISING

The rise of 5G has not only revolutionised connectivity but also opened up a world of possibilities for marketers and agencies. The enhanced speed and bandwidth offered by 5G are expected to catalyse the adoption of emerging technologies, propelling the industry towards more efficient and innovative approaches to brand communication. In such a scheme of things, the country must adopt 5G tech extensively to further the vision of Digital India.

Niraj Ruparel, Head of Mobile & Emerging Tech – GroupM India, Emerging Tech Lead - WPP India while adding that 5G has already begun reshaping GroupM’s approach, said, “It’s not just about speed, 5G is a catalyst for innovation. It will empower brands to communicate with audiences in ways that were previously unattainable. This technology will enable real-time interactions, personalised content delivery, and immersive experiences that will reshape how brands connect with consumers.” In India, 5G services were first launched on October 1, 2022, with Bharti Airtel and Reliance Jio being the only two operators to offer the network in the country. In June 2023, the Union Cabinet approved a package deal of INR 89047cr. for BSNL to provide 4G and 5G services in the country. Vodafone Idea on the other hand is looking forward to launching its 5G services sometime later this year, or so it is expected.

“2023 already appears exciting in more than one way as brands are harnessing the potential of 5G and revolutionising advertising. One of the biggest KPIs of most ad campaigns is around the efficiency of the campaign or ROAS/ROI, and clearly, we have seen a big role in optimising the campaign using AI/ML tools to reach the right audience cohorts across multiple channels, resulting in higher outcomes for the brands,” highlights Chinchankar. He further adds that in-game marketing has been projected to have a large percent of marketing expenditure, and metaverse is expected to play a key role. “Metaverse gaming provides enterprises with the opportunity to run embedded merchandising campaigns, with options to virtually purchase merchandise, like accessories and wearable NFTs for their Digital avatars,” he says.

“At Cheil India, the integration of 5G technology has catalysed our approach to campaign delivery and problem-solving. For instance, we leveraged 5G’s capabilities to deliver augmented reality experiences for a client, enhancing their product launch with interactive elements that engaged consumers at a whole new level. The increased speed and bandwidth of 5G facilitate the incorporation of immersive technologies like AR/VR, ensuring seamless and captivating interactions,” shares Sanjeev Jasani, COO, Cheil India. While adding that Cheil India has also embraced platforms that harness 5G’s capabilities, he says, “We have been experimenting with AR/VR and gaming to help our clients provide a great, unique experience to their customers. A lot of this is being experimented at the point of purchase to enable a unique customer experience.”

Presenting a different perspective on the adoption of 5G, Preetham Venkky, Chief Digital Officer, DDB Mudra Group explains, “In 2004, broadband speeds were a mere 250 Kbps, making today’s 4G video consumption unthinkable. The primary difference between 3G and 4G lies in media delivery. Currently, 4G suffices for most content, as it rarely exceeds 4K resolution, and 8K content isn’t widespread due to device limitations. Thus, 5G has specific uses – high-res video (including 8K), high-refresh-rate gaming, and extended reality (XR). However, 4G can handle 8K content on a 300 Mbps connection. Notably, infrastructure for these media types is lacking.”

He further explains that there’s no dominant 8K content leader, and mobile gaming where 5G could benefit, faces processing limitations. “VR isn’t widespread yet. So, beyond gaming on a desktop or console, not mobile, 5G’s use cases in India are limited. Console gaming in India is confined to 2 million users, while most of the gaming is on mobile (RMG). This gap underscores the lack of a critical 5G use case,” he concludes.

However, there is always the possibility of unlocking new use cases with the emergence of 5G. Customers will expect immersive and newer experiences, and innovation is the key to a successful 5G future.

Unny Radhakrishnan, CEO, Digitas India shares, “It has become a trend now to say that with every new development in technology, marketing and advertising will now transform drastically, and the industry needs to redraw their strategic maps. This is far from true. Technology changes are always in a continuum, except that the curve could be steep in some periods. 4G to 5G change will be steeper than the change from 3G to 4G. Speed is the primary impact and that will translate to better customer experience across devices. The most obvious is faster video streaming, and this will accelerate Connected TV. Apart from this, better experiences would include augmented and virtual experiences, product enhancements with connected devices, and experiences that rely on real-time data, etc. The quest for speed and optimised customer experiences is an ongoing endeavour, and 5G is one milestone in this evolution.

Mitesh Kothari, Co-founder and Chief Creative Officer, White Rivers Media explains that at White River Media, they have embraced a multi-faceted approach to leverage the advancements in technology and enhance their marketing strategies. He says, “One pivotal aspect is our integration of AI-powered data analytics, which goes beyond mere task automation. It enables our teams to ‘be the most’ and tap into their prime creative potential and devise innovative ideas. Through AI-driven analysis of customer behaviour patterns, we gain profound insights that shape our campaign strategies. Moreover, we have harnessed real-time collaboration platforms that facilitate seamless teamwork, ensuring our strategies are constantly refined and optimised.”

CHALLENGES
It is believed that the advertising industry is on the brink of a fated revolution with India entering the 5G era. The promise of unprecedented speed, responsiveness, and connectivity holds the potential to reshape how brands communicate, engage, and captivate their audiences. However, amid the excitement, a complex landscape of challenges emerges within the path to fully harnessing 5G’s potential for the advertising industry.

Sahil Shah, President – Digital Experience, Dentsu Creative India thinks that the primary challenge lies in user device upgrades necessary to unlock 5G’s full potential. “In a market like India, where many users opt for budget-friendly devices for basic needs, executing an immersive AR campaign across a wide audience may face limitations. However, as device upgrades become more prevalent, especially considering the growing trend of investing in mobile devices, this hurdle is poised to diminish,” he explains.

Highlighting the challenges of harnessing the complete potential of 5G, Ruparel shares, “As 5G rolls out, challenges include ensuring comprehensive coverage, addressing privacy concerns, and managing increased data consumption. Additionally, creating content optimized for 5G experiences will be essential. The shift will require an industry-wide adaptation to fully harness 5G’s potential.”

Jasani believes that the high-speed connectivity of 5G accelerates problem-solving processes. “We were recently trying to build a knowledge bot that sat on exceptionally large volumes of data, and based on user questions, could process through it and provide answers. This required not only quick processing but also a high speed of 5G to help eventually provide an instant output for the user,” he shares.

SYNERGY WITH NEW EMERGING TECHNOLOGY
In the world of technology, evolution is a constant, propelling innovation to newer heights. Amid this landscape of progress, the advent of 5G emerges as a formidable force, igniting a transformative spark that sets new emerging technologies ablaze. Experts shed light on how this powerful connectivity standard is not only amplifying existing tech but also nurturing the growth of new solutions.

“In the light of recent developments, the pivotal role of 5G in transforming advertising becomes even more pronounced. With smartphones becoming 5G capable, the industry’s landscape is poised for an unprecedented change. The essence of 5G lies in its lightning-fast speeds and low latency, a combination that enables real-time content delivery and truly interactive experiences,” shares Karan Bharadwaj, CEO, ExperientialEtc. He further says, “Consider the impact of this – brands can now seamlessly host live, high-definition video streams and engage their user base with multiple innovative solutions on social media platforms. This capability allows them to engage with their audience in ways that were not possible before. Additionally, the potential of AR in advertising is revolutionised. Imagine a virtual ‘try-before-you-buy’ experience for furniture shopping, where customers can virtually place items in their own living spaces using AR. This convergence of 5G’s speed and AR’s immersion sets a new benchmark for brand communication strategies,” he adds further.

Elaborating on the synergies between 5G and new-age technologies, Shradha Agarwal, Co-Founder & CEO, Grapes explains, “Technologies like AI, AR/VR, or IoT are advanced, and they are only just reaching the masses. That is the only way that they can grow. 5G is key in helping them reach a larger audience and be employed in simplified use. AR filters for Snapchat and Instagram are prime examples of this. The seamless integration of these techs into social media marketing, mobile marketing and overall Digital marketing is what we achieve through this synergy between them and 5G. The best and most specific use case of this synergy can be found when technologies are used to amplify the brand message in a unique execution.”

Sahil Shah believes that the convergence of 5G with other cutting-edge technologies is reshaping consumer experiences. Consumer expectations should also go through a sea change in the face of the more superior 5G. According to a PwC survey, The Promise of 5G: Consumers Are Intrigued, But Will They Pay? – four out of 10 consumers say that their mobile device internet is not always strong, and hence, there is a lack of reliability with 4G. The survey showed that consumers prefer reliability over speed, cost, and amount of data. One-third of those surveyed are willing to pay more for 5G. There is a heightened excitement about 5G technology, and consumers are ready for a better experience.

“The expansive bandwidth and reduced latency of 5G unlock the full potential of AR, enabling immersive engagements. AR can be explored fully, I have my questions on an immersive VR activation but I would love to see it play out. From other tech POV, due to its low latency, it will have better customer experiences when it comes to IoT for sure. AI has different forms and means (frontend and backend) with which it will beautifully engage to give faster and better experiences. I also think 5G is very relevant to gaming tech which anyway needs state-of-the-art setup,” says Shah.

IMPACT ON GAMING
In the gaming industry, where worlds are forged through pixels and experiences are defined by immersion, the advent of 5G technology marks a seismic shift. The once-distant dream of seamless connectivity, minimal latency, and heightened interactivity now materializes with the power of 5G networks. This evolution doesn’t just elevate gameplay; it reshapes the very landscape of the gaming industry. A report titled, ‘State of India Gaming report FY22’ – the Indian gaming industry is expected to reach $8.6 billion by 2027. To put it in perspective, the gaming market in India was estimated to be worth $2.6 billion in FY 2022. With 5G technology, the gaming industry is set to see widespread advancement.

“With the rollout of 5G, both streamers and viewers are reaping its benefits in various ways. Streaming graphics-intensive, high-FPS games was a formidable challenge for mobile streamers relying on 4G connections. However, the introduction of 5G has streamlined the process, enabling streamers to broadcast their favourite games seamlessly, without any lag. From an e-sports viewer standpoint, we’re witnessing a surge in requests for 4K streaming, which was previously impractical on 4G devices. As users transition from 4G-supported devices to 5G-capable ones, we’ve identified a growing demand for advanced viewing features that are enhanced with high-speed internet. Features such as real-time interactive 360-degree camera perspectives, multi-stream viewing with customizable angles, and augmented reality elements superimposed onto live matches have now become real possibilities,” shares Ashwin Suresh, Founder, Loco.

Suresh also believes that the intersection of 5G technology with AR and VR has the potential to revolutionise gaming and e-sports. He says, “While 5G is already making its mark, it’s worth noting that the hardware required for seamless AR and VR experiences is still catching up, especially in the Indian gaming landscape. The adoption of AR and VR in gaming within India faces certain challenges due to the need for sophisticated hardware and fast internet connectivity. Presently, the cost of entry and the average income of gamers pose limitations to broader usage of such technologies.”

“High-speed internet enables high-quality gaming and live stream experiences for all gamers in India,” says Ravi Kiran, Founder, GoLive Games while explaining that before 4G, only casual games could be afforded, but today games above 100 MB are no longer facing resistance. He shares, “We are one of the top mid-core game publishers in India, and our games tend to be 300 MB or more. Also, our games have multiplayer e-sports tournaments, and 5G enables a seamless experience for gamers. India has more than 200K content creators, most of whom livestream games like BGMI regularly. With 5G these creators can stream higher-quality content, and consumers will flock to these HD streams instead of watching them in low-quality formats. More premium content formats where audiences can participate in live streams have also started.”

In e-sports tournaments, which largely happen online for the mobile gaming community at the grassroots level, having a good internet connection is vital to competing well. For fast-paced games like BGMI, a slight latency difference can decide your fate. Thus, 5G has contributed to making e-sports fairer and more competitive. The same applies to casual gamers as well,” explains Shiva Nandy, Founder & CEO, Skyesports. “Having a 5G connectivity ensures that you play games smoothly and without high latency that can be off-putting to new players. Most smartphone brands in India, including Oppo and Vivo have included 5G connectivity even in their low to midrange smartphones, making it much more accessible. Additionally, mobile penetration has significantly increased in the past few years with affordable smartphones. We plan to leverage this accessibility in our upcoming IPs, starting with the Skyesports Championship 5.0,” he adds.

5G – THE GAMECHANGER FOR MARKETING?
With the emergence of 5G technology, marketers can now focus on transforming brand play, but Chinchankar believes that existing technologies have not been fully unleashed by brands today. He opines, “What we are seeing is just a scratch on the surface, and there is so much that brands can achieve. We live in such a dynamic world that we see technological changes/innovations every month or quarter. Not just advertising, but 5G has potentially impacted many other industries like IOT, Smart Cities, Entertainment, E-commerce, Education, and Healthcare,” opines Chinchankar.

In a rapidly evolving world of marketing and branding, innovation often stands as the catalyst for success. With 5G technology as a game-changer that holds the potential to revolutionise how brands communicate, connect, and captivate their audiences, it’ll be interesting to see how its unparalleled speed, responsiveness, and capacity to reshape consumer engagement can redefine the rules of the marketing game.

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