Deloitte has predicted 2023 to give us £80 5G smartphones, ads across all streaming services and £820 billion to be spent on social media.
The report suggests we’re likely to see every major video streaming service launching an ad-funded tier in Europe and approximately 66 per cent of consumers will use at least one of these on-demand services monthly, increasing by five per cent on this year’s figure.
The prediction comes as video streaming platforms are already having to reconsider their offerings, as consumers are faced with tight budgets in light of inflation. Paul Lee, global head of technology, media and telecommunications research at Deloitte, said: “We know that consumers are often willing to trade ads for discounted or free content, and AVOD offers a way to keep watching, while also saving.
“In the UK, consumers average 2.46 subscriptions, meaning that ad-funded tiers may become even more attractive for those aiming to cut costs.”
The amount of money spent on goods and services via social media is expected to increase by 25 per cent in 2023, reaching over £820 billion globally. In 2021, the figure was £540 billion.
As more social media platforms are offering e-commerce as a service, consumer trends are changing in favour of buying products showcased by content creators. Over half of Gen Z shoppers and 42 per cent of millennials are influenced by the creatives they follow on social media channels when making purchases.
Celine Fenech, consumer insights lead at Deloitte, commented: “For retailers, social media platforms will remain important virtual shop windows, acting as additional streams of revenue and drivers of traffic.
“It is likely that the social media commerce market will grow as consumers continue to exist in an online world, where products can be sourced, bought and sold at the touch of a button.”
Deloitte also predicted next year to feature the first 5G smartphones to retail at £80 , taking another step toward making 5G devices accessible to consumers across most markets.
The low-cost 5G devices would look and feel very similar to high-end models, but the components within the smartphone would include low-end displays, low-power processors, smaller storage capabilities and single-lens cameras. Despite reducing costs, manufacturers will need to keep sustainability in mind and more recycling schemes could be introduced to help meet environmental goals.
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