How to Make 5G A 'Gee Whiz' For Consumers (Rather Than An 'Aw, Jeez')
Consumers awareness of 5G is high. Their understanding of why they should want it: not so much.
Like most Americans, you’ve likely seen a plethora of ads about 5G phones or mobile service over the past few months. Delayed somewhat by the pandemic, the national rollout of 5G is now filling our screens with 5G ads: from providers like AT&T, Verizon, and T-Mobile, handset brands like Apple and Samsung, and smaller players like Xfinity Mobile and Spectrum Mobile looking to up their market share through 5G.
If nothing else, 5G marketing has been very successful in building awareness of 5G. In December, Hub’s 5G survey found that 89% of US consumers have heard of 5G. But consumers appear to have far less understanding of what 5G does, and why they should want it. What should make 5G tech and devices compelling to the average consumer… aren’t most already well-enough served by 4G?
A big issue is that many 5G features are still far in the future. The benefits of greater connectivity, better Internet of Things (IoT) performance, or enhanced AR/VR experiences will one day get consumers excited. But in January 2021, they’re things that consumers haven’t thought to ask for and don’t know they need.
This is a repeating dilemma for media technologies; they evolve faster than consumers can absorb – or appreciate – them
Take 4K TV sets for example. Consumers are buying them because 4K is now the standard for digital sets. But actual viewing of 4K content lags, largely because HD is “good enough” for many viewers, and 4K content costs more – so why pay more for 4K?
Another example is the inclusion of the “HD radio” standard on some car audio systems; Has anyone ever actually listened to HD radio, or is able to say why it’s better than FM? As a final example, consider the digital TV transition in 2009. Some consumers thought that DVDs already had made their TV picture so much better, there was no need to upgrade to a new generation of digital (e.g., HD) TV sets.
What will help make 5G something consumers are excited about, rather than a new standard foisted upon them?
Our research shows there is one clear benefit to 5G: media, specifically premium video (in other words, for oldsters like me, TV or movie-style content). The high downstream speeds of 5G allow HD or 4K movies to be downloaded to a device in seconds, or ensure buffering-free streaming. Our 5G report shows that while about 80% of consumers who use their 4G mobile service to stream video are happy with that, about 70% would consider switching providers, or paying more for their mobile service, to get even better video quality.
This power of video as a 5G selling point is clear in some of the deals we’ve seen between service providers and video providers. Ronan Dunne, Group CEO of Verizon Consumer, recently said offering free trials of Disney+ and Discovery+ bolstered subscriber loyalty and retention. And the synergy between AT&T mobile service and HBO Max is clear: it is a major reason AT&T acquired Warner Media in the first place.
Better video is one of the biggest advantages of 5G – but more importantly, it is something that consumers can appreciate right now. As an added bonus, video can offer revenue streams from subscriptions, advertising, and pay-per-view transactions for the service providers as well as drive interest in 5G. Looking towards the future, evolving 5G capabilities will become things consumers can appreciate and drive interest to 5G; the emphasis can then be transitioned from video.
And in another eight years or so, we can start worrying about how to promote “6G”!
