(Morgan Stanley) What will be the biggest Tech, Media and Telecom trends in 2020? Morgan Stanley’s analysts and TMT Barcelona conference attendees share key debates and topics for the year ahead.
Highlights include:
Katy Huberty, Head of North American IT Hardware Equity Research, discusses how 5G will go from promise to rollout in 2020, driving a decade of growth, productivity and IT spending.
Amid much discussion over the rise of over-the-top (OTT) streaming platforms, an equally exciting development will be the acceleration of investment in OTT advertising. Advertisers are expecting greater reach from OTT since advanced ad tech capabilities allow for more personalized ads targeting viewer demographics, interests and location. Certain platforms keep viewers from skipping ads, ensuring a higher completion rate and ad-blockers don’t exist on connected TVs as they do in mobile and desktop. Programmatic TV can also feature interactive elements and direct calls-to-action that can help maximize return-on-investment. Although there are still challenges ahead before full implementation (namely, privacy issues, creative logistics and measurement), based on the immense growth of programmatic advertising in display, mobile and social media, programmatic TV on OTT platforms could be headed for a similar outsized surge in growth.
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Jess Alsford, Head of Sustainability Research, talks about the increasing intersection between tech and sustainability.
In addition to opportunities in the Telco towers subsector, 5G network sharing among mobile operators emerged as another key conference discussion. As operators gear up for a 5G rollout, the costs of new infrastructure across numerous use cases will present challenges to bottom lines. In addition to upgrades for existing 4G networks, operators will need to invest in a 5G Internet of Things (IoT) layer and small cell towers in urban areas since 5G’s high band spectrum will require a larger number of access points. By sharing networks, operators can significantly reduce costs, while also mitigating some of the physical hurdles of 5G deployment in urban areas, such as opposition to excessive numbers of cell towers throughout cities. Although mobile operators will save on the massive cost of going it alone, network sharing will require operators to find new ways of differentiating service to customers to compete and gain market share.
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Source: Morgan Stanley