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#MWC16: Why 5G is a breakthrough for the Internet of Things

A live telemetry allows fast data transfer and even faster decisions – that led to the second time in a row where Mercedes won the Fromula One world championship.
A live telemetry allows fast data transfer and even faster decisions – that led to the second time in a row where Mercedes won the Fromula One world championship.

Not only new smartphones and mobile gadgets are presented at the Mobile World Congress in Barcelona, but also current trends in the mobile business are a hot topic. Other key topics are the forthcoming mobile standard 5G, the Internet of Things, which is still waiting for its great breakthrough, and the discussion around the disruptive influence of mobile in almost every industry.

Some ideas are ahead of their time and seem to wait for the ideal frameworks for years. The Internet of Things (IoT) definitely belongs to that category of ideas. The term „Internet of Things“ was initially mentioned by Kevin Ashton in 1999 and is ever since waiting for its great breakthrough. However, this could change now. The necessary hardware gets smaller and smaller every day, so that you no longer see your connected devices as refrigerator with a computer but as intelligent refrigerator. More important is the forthcoming mobile phone standard 5G, the successor of the 4G, that created the ideal framework for an extensive use of the Internet of Things. The technical data are very promising:

  • hundred times higher date rates (up to 10.000 Mbit/s)

  • about 1,000 times higher network capacity

  • over hundred thousand mobile devices can be accessed simultaneously

  • extremely low latent periods

  • 1/1000 energy consumption per transmitted bit

  • 90% less power consumption depending on the mobile service

5G is driving the breakthrough of the IoT. The number of accessible devices, the high network coverage and the really low power consumption open completely new possibilities. But there is the catch: 5G won’t be available before 2018 and will need some more years until it will be accessible globally.

However, what does that have to do with digital advertising?

It is as easy as that: the IoT will be omnipresent in a few years and will accompany us every day. This data are the perfect foundation for digital advertising, which is relevant in all areas, as it displays the right ads at the right time. Advertisers, however, should be well advised to handle the data responsibly and in the interests of their clients. Otherwise, they run into the danger of getting rejected by their customers and clients – an actual situation we can already observe with the rise of ad blockers.

Of course, it won’t be enough to just collect the data from the IoT. The data needs to be processed, packaged, and evaluated before they can be used reasonably. Otherwise, data silos will emerge without any greater usage for companies and their customers. The challenge for digital advertising lies within satisfying the needs of consumers exactly when they arise.

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Social Media & Content Specialist.

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