In the Age of 5G, Is Privacy Just A Myth?

5G internet is a quantum leap in terms of bandwidth, connectivity, distribution, and mobile experiences. While marketers are enthusiastic about presenting rich content and innovative advertising opportunities, concerns are rising over consumer data privacy. Will marketers be able to balance the 5G and privacy paradox, or will privacy become a myth in the era of 5G internet?

5G isn’t just faster data. It’s more connections in the home (10x higher connection density), out of home (3x spectrum efficiency), and one of the last major hurdles for a true ‘Internet of Things.’ That brings with it a lot of contextual information about a user, what devices they own, what they watch, and so forth, but using that data responsibly and transparently will be incredibly important for advertisers in the 5G era.

~ Matt Barash, Head of Strategy and Business Development, AdColony, exclusively to MarTech Advisor

What is 5G Internet and All the Hype About?

5G or the fifth generation of cellular network for mobile communication uses Enhanced Mobile Broadband (eMBB) and offers a peak download speed of 20Gbps.

Here is how 5G can disrupt the communication and marketing industries:

1. As more rich content, like video streaming, gaming, etc. are delivered, the demand for bandwidth grows, and 5G can meet this demand.
2. Consumers can enjoy immersive experiences, and advertisers can effectively useOpens a new window bandwidth-intensive applications like Virtual Reality and Augmented Reality.
3. High speed, low latency networks can help developers program and support emerging technologies like IoT devices, live gaming, time-sensitive telemedicine, autonomous vehicles and appliances, and much more.
4. 5G internet will improve mobile experiences with content transmission from screen to screen, brand to brand at lightning-fast speeds.
5. 5G could spark an explosion of connected devices from mobile phones to wearables to connected appliances in a range of locations – home, office, marketplaces, etc. These connected devices will generate a tremendous amount of data that will be the key to delivering precise and hyper-personalized experiences for customers.
    

Learn More: What is 5G and How will it Shift How People Consume (And Disperse) Information in 2019?Opens a new window

But there are rising concerns over data privacy as the 5G network expands. Let’s understand why.

Why Data Privacy is a Concern on 5G Networks?

Constantly connected IoT devices transfer large volumes of data over 5G networks. This poses many challenges to protecting customer data privacyOpens a new window :

1. China is one of the leading nations in digital technologies like 5G, and the U.S. Government is worriedOpens a new window that if Chinese companies like Huawei install key elements of 5G networks in the country, they may be able to spy on the traffic passing through them – posing a huge national security risk.
2. In the 5G world, as more wearable devices and smart appliances connect to a network, they will transmit personal and more sensitive information. For example, a heart rate or insulin monitor will record and transmit sensitive, personal medical information, which would need protection from cyber-breach.
3. Location data privacy is an alarming concern with 5G internet. 5G has a smaller coverage area, and therefore many more cellular towers are placed together within a smaller radius. This can help your mobile operators track your precise location and even your movement trail. What happens if this data is sold to third parties or stolen?
4. IoT devices are now being optimized for energy efficiency and can be left running without being monitored. Such devices may turn out as a surveillance nuisance in the future.
5. What happens if smart home appliances are not configured properly with data sensitivity in mind? Consider a scenario, where the manufacturer can remotely program when a device can stop functioning without the owner’s consent. Or what about your microwave sending out your food preferences to food delivery companies? Creepy!
    

Can Marketers Balance 5G and Privacy?

With 5G, advertisers will never again have to worry about ads loading on mobile, and the potential for more immersive ad experiences on mobile is larger than ever. However, as technology improves and becomes a more prevalent part of people’s lives, so does consumers’ understanding and expectation of responsible handling of their privacy and data.

~ Matt Barash, Head of Strategy and Business Development, AdColony

Data privacy concerns are difficult to ignore when the industry is struggling with data breaches and transparency issues. Though the challenges are known, no one is talking about them.

Learn More: 7 Ways 5G Will Help Advertising Evolve in 2019Opens a new window

Forward-thinking marketers can reap the benefits of 5G only when they address customer data privacyOpens a new window concerns. Here is what you can do to start:

1. Defining a new standard of data granularity. Before using customer location data (precise mobile coordinates), companies and marketers must decide how much is too much? Although precise location information is available, consent must be obtained to collect (and store), share, or use this data.
2. Sensitive information like personal data, medical information, home configuration, etc. must be encrypted before transmission.
3. Consumers must be informed (in simple and clear language) how their data will be used for personalizing experiences and advertising. If a customer opts out, this data should not be decrypted or shared.
4. Organizations can consider private 5G networks for better security, privacy, and flexibility, provided they comply with the law of the land.
    

Learn More: How 5G Will Impact Customer Experience in Mobile MarketingOpens a new window

5G offers far more benefits beyond speed and low latency, for marketers to harness. But instead of a narrow focus on short-term success, marketers should strive to build trust among the consumer community while delivering immersive, enticing and personalized experiences.

We leave you with the wise words of Matt Barash, “Consumers have a right to, and informed consumers (of which there are more and more every day) will demand both an overview of how they’re being tracked and targeted for advertising on all of their devices, and the chance to opt out. Advertisers working with networks and marketplaces that don’t provide this information and opt out tools acceptably run the risk of harming their own reputation.

Apple’s iOS 13 privacy tools of anonymized emails for sign ups, and location and Bluetooth tracking granularity are an example of a consumer-friendly approach to letting consumers control how their data is used, but that’s only the beginning. Rather than get upset that users are opting out of these methods of tracking, advertisers should embrace contextual advertising as an opportunity to reach those consumers with relevant ads without infringing upon their chosen tracking and privacy rights.”

How will you balance 5G and data privacy? Share your ideas with us on TwitterOpens a new window or LinkedInOpens a new window or FacebookOpens a new window ; we’re always listening!