How 5G is set to draw more advertisers to emerging tech & gaming

The 5G spectrum auctions, set to begin on July 26, will see a total of 72,097.85 MHz of spectrum worth at least Rs 4.3 lakh crore put under the hammer. With Adani Data Networks now also staking its claim, in what was already a heated contest between Bharti Airtel, Reliance Jio, and VI (formerly Vodafone Idea), the amount is expected to exceed Rs 1 trillion, according to various industry experts.

The impact on the telecom industry aside, India’s subsequent adoption of 5G is expected to have huge implications on India’s growing digital economy, as well as its booming advertising and entertainment industry, which is expected to reach Rs 4,30,401 crore by 2026 at 8.8% CAGR, as recently reported by PwC's Global Entertainment & Media Outlook 2022-2026.

Price of Entry

Mitesh Kothari, Co-founder and CCO, White Rivers Media, believes that consumers now understand internet technologies better than ever before. People who were cost-driven are becoming experience-driven and are actually willing to pay more for a better experience.

“5G is set to bring an immersive AR/VR, 4K video and mobile gaming experience to entice consumers. Plans clubbed with digital services are more likely to penetrate as people are more willing to pay for an ‘all-included’ experience. And, of course, 4G is going to be around anyway, so the ones who cannot afford 5G will always have an option,” he says.

On the impact of raised prices on the Indians who are about to come online, Ashwarya Garg, Co-founder, HYPD Marketing Technologies, said, “We have grown from 250M internet users to 900M internet users today. While the country today has 4G, there are still areas and localities where only 3G prevails. And in a few places, there is only 2G. It is roti, kapda, makaan and the internet today. So, there is no question about a dip in internet adoption,” he says.

Garg further says, “With the release of any new technology, there is a race for faster and quicker adoption. We will surely see a lot of ATL/BTL and influencer-led activities, campaigns specifically designed to educate and adopt on the 5G networks. We should expect a lot of activation via gaming creators, YouTubers, and artists popular on OTT platforms, all of whom would educate them about the end use case.”

Juhi Hajela, VP of Global Marketing at now.gg, points out that despite its massive growth and future potential, with only 47 per cent internet penetration, India is still growing its connected base. “Over the years, we observed that mobile internet connections emerged as a driving force for internet access in India. As a mobile-first country, improved mobile data connectivity will bring a new wave of consumers to utilize the high-speed internet.”

New Ball Game

And the gaming industry, which is the fastest growing space in digital advertising, has the most to gain, given that India is a mobile-first country, across every segment. Experts like Rohit Agarwal, Founder and Director of marketing agency Alpha Zegus, point out that in a country where mobile gaming dominates over 80 per cent of the online gaming and esports segment, there is no doubt that data speeds and data charges hold tremendous value in the growth of this industry.

“The industry has already seen a CAGR of about 37% in the past couple of years, and telecom operators like Jio, VI, Airtel, etc. have accelerated the growth with the introduction of 4G at a highly competitive price point. In the next five years, the CAGR is expected to hit close to 40%, and in my opinion, over 20% of this would be driven by the introduction of 5G, as 5G will allow gamers from remote parts of India to play high-quality games with ease,” says Agarwal.

This would allow tournament organizers to organize more localized events with higher participation and will be able to reach a wider viewing audience. This, in turn, will give brands more sponsorship opportunities, not only to reach out to a bigger audience base but also to experiment with more complex advertising formats which would otherwise be very data dependent.

Gaming creators and streamers will benefit from this improved speed. That would also mean 3G, 4G connectivity will become highly affordable, allowing more consumers to access it.

“India is heading toward becoming the top gaming country in the world. We expect that with 5G auctions, the existing internet service that is already affordable will become faster, allowing Indians to follow their gaming passion. However, limiting device specifications is a real challenge for some players,” says  Hajela, concluding, “We believe that mobile cloud gaming solution is an excellent fit for the industry, allowing gamers to pursue their passion without being limited by low-end devices.”