Backslash Week #46 – News of the Week
Week 46 has ended and a lot of interesting things happened throughout this period. Snapchat‘s stocks are climbing up as augmented reality advertising is seeing a rise, while TV ads might be returning akin the pandemic.
Be sure to read on.
1. AR Marketing With Snapchat
The augmented reality market is seeing a rise with the increasing pace in technological development surrounding it. With newer and newer updates coming to Messenger or Instagram, not even mentioning one of Google’s newest ad format, Swirl, which spices up common display ads with real-time 3D models, it is no surprise that Snapchat, the grand daddy at implementing AR, finds the topic important to discuss.
Snapchat’s stock price went up by 7% on Thursday when the company announced their plans regarding the near-future of augmented reality advertising. The combination of AR and e-commerce has been in the spotlights for quite some while, but an actual 360 implementation is yet to come regardless of the platform. The increase in stock price is probably the result of the ambitious yet confident statement that a circa 20% increase in online ad revenue can be expected in 2021.
“We think sponsored lens/filter ads are better positioned to scale at Snap than most investors realize and set to tie in more explicitly with the company’s heretofore somewhat vague e-commerce strategy. We think the company is on the cusp of rolling out more AR shopping experiences, including virtual stores.”– Deutsche Bank
Multiple renowned brands, such as Gucci have already been taking advantage of AR for advertising purposes for a while, so it comes of no surprise that the #no1 platform for mobile AR is taking initiative at monetising the technology in a more effective way as well.
#snap #it #to #make #it
2. TV Ads Are Coming Back
COVID-19 affected many highly different industries. People are forced to spend more time at home, and as such home-based activities are seeing a rise. TV ads saw a major decline during the pandemic and in general too, as television is slowly getting replaced by its more modern, digital competitors, such as streaming services like Twitch, video sharing platforms like YouTube, or your virtual home cinema like Netflix.
Interestingly, the global TV advertising market is seeing a rise yet again. Many media companies, including Disney, FOX or Discovery Channel reported an upward pressure over the revenue chain having occured quite recently. With political campaigns being in the spotlight and a record-breaking budget being allocated for the cause the rise may, in fact, not only be for the short-term, but for the long-term as well. However, macroeconomic factors connected to the pandemic may affect the earnings negatively again in the future.
Media companies are stating that production is going to be invested into up to a higher extent, as the loss in earnings was so severe due to COVID-19. For example, Discovery Channel claimed that their production is back to normal with only approximately 10% still being on the hold. AMC Networks, the media company responsible for broadcasting notable works, such as The Walking Dead series, claimed that production is returning as they are seeing an increase in view count now. Disney similarly stated that, while production needed to be reduced due to the pandemic, many of its employees managed to work remotely with no disruption in their output. The company also stated that it has approximately 100 projects in production right now.
#brace #yourselves #movies #are #coming
3. 5G Is Slowly Becoming Reality
5G – the networking & communication technology meant to be the successor of 4G, the most up-to-date mobile networking solution by today – has been seeing a noticeable hype for the past months, especially with the predicted benefits and upgrades it’s going to provide in comparison to his older brother. However, despite the hype 5G is still highly in development and you will probably not be seeing the 5G icon at the top of your smartphone’s screen as a standard for a while. At least that’s what we believe, however, China says differently.
Production increases due to COVID-19.
R&D for 5G hasn’t been neglected and has been paid high attention to, however, it’s incomparable to what is happening right now. Investments into making the technology available for the vast majority and ensuring that it does overtake 4G has seen a great increase in China. The technology is available already in Austria too, however, 4G is clearly still the standard here. The increase in development rate in China could result in an increase in production of 5G capable smartphones, a decrease in cost, and a generally higher capacity to be shipped. All in all, the development and introduction rate of 5G is seeing a great rise right now.
What does it mean for ads?
Imagine the difference in advertising over 4G and 5G as the difference you are seeing now with a smartphone in your hand compared to 10 years ago with common telephones. 5G is going to help increase bandwidth in such an optimized way, that even the grand daddies of online advertising which are receiving smaller periodic updates may see a major improvement as well, such as display ads. WebAR integration or 3D interactable in-feed ads (like Google Swirl) could become a streamline standard in the future. This will also lead to advertising companies seeing an increasing demand for 3D artists, be it from modelling to animating.
#lets #go #5G #black #mirror #vibes
4. Final Words
Last week’s news reached out to a collection of topics, including social media, television and 5G. Snapchat is paying a much greater attention to augmented reality & e-commerce, while TV ads may be returning as the television industry is (at least for now) seeing a rise. 5G coverage has seen a rise in China and the western world is slowly taking initiative as well. The technology carries an extensively great potential for online advertising.
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