Industry 4.0: Does Advertising Agency Ready to What’s Coming?

Sri Rahayu

, Pijar Suciati

, Mareta Maulidiyati

Creative Advertising Studies, Vocational Education Program, Universitas Indonesia

Public Relations Studies, Vocational Education Program, Universitas Indonesia

Keywords: Advertising, The Internet of Things, Industrial Revolution 4.0., Technological Acceptance Model, Internet

of People

Abstract: This article aims to describe what is coming in the industry 4.0. Does it age of digital enterprising or just

exchanging human capital towards artificial intelligence in everything. Secondary research applying to this

article uses some reference to tell a story of what is industry 4.0 and what extends does it matter? Especially

in terms of its impact on the future trend of the advertising business and on environmental sustainability.

The story is divided into four parts. First is an introduction of how the technology evolves since the first

industrial revolution to the fourth industrial revolution. Second, this article discussed what is mean by

industry 4.0 that includes definitions, values, and business models that evolve due to that matter, also its

impact on environmental sustainability. Third, this article shares about what the industry should do to adapt

the technology but also care for environmental sustainability. Fourth is the critical summary of what to do

next since technology will continue to evolve, and ready or not, the industry must change and adapt to

prevent extinction. This article contributes to existing research in advertising studies, especially the one that

is related to the revolutionary industry 4.0. The finding of this study provides an overview of how the

advertising industry should face industry 4.0. This shall provide input to practitioners, what to do next to

improve their readiness to the revolutionary industry 4.0. This study is limited by time. Therefore future

studies are needed to expand the results of this study into the broader scale.

1 INTRODUCTION

In the past centuries, four industrial revolutions have

occurred. It all triggered by insatiable customer

needs of the actual level of technology that is result

in rapid movement of transportation and

communication. The first industrial revolution has

started with the appearance of steam engines and the

mechanization of the textile industry at the end of

the 18

century, while the second industrial

revolution was initiated by electricity and internal

combustion engine and this is also the era when

mass production technologies appeared (Agy, 2018).

The third industrial revolutions occur in the

middle of the 20

century when computers have led

us to even more excellent production by simplifying

the production process using the automation and

robotization to suppress the production cost. And

nowadays, we are facing the fourth industrial

revolution. The term was first used in German High-

Tech Strategy 2020, which refers to the possibilities

of digitalization, robotization, automation and

network operation that make modern life more

accessible.

The fourth industrial revolution is also known as

a cyber-physical age. The age where data related to

our daily life and activities are integrated in the

Internet of Things (IoT). Most industries think that

this fourth industrial revolution will enable mass

production more efficient and flexible, in order to

shorter time to market. In the end, it will benefit the

industries. Even so, industries are still working to

find out how to use and explore the potential benefit

of this fourth industrial revolution.

The Internet of Things (IoT) consists of devices

that can sense several aspects of the real world such

as temperature, light, sound, touch, or any other

related aspects and report such real data or act on it.

IoT is considered novel technology, and currently, it

is gaining ground rapidly because it has the

capability of enabling the integration of several

collaborative and communication technologies. IoT

comprises a wide range of products and services,

focusing on sharing data across the Internet. The

main basis of IoT is information transfer. The

Rahayu, S., Suciati, P. and Maulidiyati, M.

Industry 4.0: Does Advertising Agency Ready to What’s Coming?.

DOI: 10.5220/0010028700002967

In Proceedings of the 4th International Conference of Vocational Higher Education (ICVHE 2019) - Empowering Human Capital Towards Sustainable 4.0 Industry, pages 39-47

ISBN: 978-989-758-530-2; ISSN: 2184-9870

transferred information being used or accessed by its

user will be beneficial to people from professional

level to everyday life (Igor JurCic, 2020).

The growth of the Internet of Things is one of the

fastest growing trends in technology. It is estimated

that in 2022, IoT will have an impact on the global

economy of around $ 14 billion. In its process,

although the internet of things is revolutionary,

business experts see the intervention of all members

of society as crucial, especially by entrepreneurs.

Large companies mostly tend to lay the foundations

of technological infrastructure, but in reality

entrepreneurs is the one who promote and drive the

most innovative ideas. The Internet, in particular,

has changed the way people communicate and

conducting their business, so it technically increases

the productivity of the population. It can be trace by

several ways, firstly with the reduction in transaction

costs (Caron et al., 2016).

The new industry 4.0 along with the growth of

internet of things has brought many changes to many

industries. At first, we expect some transformations

happened in ICT related industry, but it turned out

that so many industries affected by this

phenomenon. The advertising industry is one of the

affected industry. As one of the most dynamics

industry, the advertising industry must evolve to

response and to thrive now. To be sure, full

advertising agencies in the world that do marketing

consultation also have to evolve their operating

models. Advertising agency back-office

management have been centralized in shared service

centers, IT and finance, followed by functions such

as treasury, tax and law in some cases. Now, human

resources in advertising agencies generally weaken

gradually except for human creative resources

because their creativity makes distinction between

one agency to another.

The production department has experienced

many evolutions in recent years, since agencies have

the challenge in collaborating each of their creative

ideas to support a pitch that in the end will be finally

put together in the form of a "unified storytelling."

For example, Omnicom announced in April 2014 the

integration of various production departments into

an entity called EG+ Worldwide. This entity will

provide a client-focused production network and

highly personalized execution. EG+ was formed to

be a leader of the implementation the latest

technology in applying, strengthening and localizing

creative brand concepts in all media such as motion

pictures, digital media and print (Pattheeuws et al.,

2017).

While agencies may unite their services, general

practices such as account planning and creative

services are not combined across agencies except for

the highest-level accounts. In such cases, a

multidisciplinary global account structure has been

established in the parent company level to support

collaboration and coordination between "horizontal"

cross-agency teams. In addition, in marketing there

are fundamental changes from customer mapping,

innovation in the platform, social influencers, and

thus allowing experience to happen with exponential

results. It is one of the most exciting time for

marketers.

But, there are more to be explained as the

changes maybe different among agencies. Therefore,

this study aims to examine the readiness of

advertising agencies, particularly in Indonesia, of

what’s coming in industry 4.0.

2 METHODOLOGY

Using secondary research this article uses some

reference to tell a story of what is industry 4.0 and

what extends does it really matter? Especially in

terms of its impact on the future trend of advertising

business and on environmental sustainability. The

study’s results will be presented in four major parts,

which is: 1) introduction of how the technology

evolves since the first industrial revolution to the

fourth industrial revolution; 2) what is mean by

industry 4.0 that includes definitions, values, and

business models that evolve due to that matter, also

its impact on the environmental sustainability; 3)

what the industry should do to adapt the technology

but also care for the environmental sustainability and

4) key summary of what to do next since technology

will continue to evolve, and ready or not industry

must change and adapt to prevent extinction.

3 RESULTS AND DISCUSSION

The fact that the Industry 4.0 concept comes from

Germany is not entirely surprising, due the fact that

Germany has been named as one of the top leader in

the global manufacturing industries, even

historically and currently known as top leader in

manufacturing equipment sector. Industry 4.0

deliberately became the German government

initiative to supports development of the industrial

sector. Therefore, it is safe to state that Industry 4.0

can be seen also as an action of Germany to

ICVHE 2019 - The International Conference of Vocational Higher Education (ICVHE) “Empowering Human Capital Towards Sustainable

4.0 Industry”

sustaining its position as one of the most influential

countries in manufacturing the automotive and

machinery. The Industrial 4.0 basic concept was first

introduced to the world at the 2011 Hannover fair

(2011 Hannover Messe). Since its introduction,

Industry 4.0 has been in research, academics journal

and industry talks at many occasions The

industrialists want to exploit as much as possible the

potential of new technologies and concepts such as:

1) The improvement of the Internet of Things; 2)

Integration of technical processes and business

processes in the company; 2) Digital mapping and

real world virtualization; 3) 'Smart' factories and

their effects on the efficiency of industrial

production (Rojko, 2017).

Industry 4.0 is an era where materials and

machines are connected to each other on the internet

of things (IoT), many objects have network

connectivity, making it possible to send and receive

data. This allows mass production to be very flexible

and resource friendly. This is driven by market

needs for increased flexibility, asset efficiency, and

shorter time. The industry 4.0 is also known as

digital factory. Because in contrast to Revolution 3.0

that focused on the automation of single machines

and processes, Revolution 4.0 very much focuses on

creating a digital ecosystem with value chain

partners, creating end-to-end integration of all

physical assets and also to seamlessly generating,

analyzing, and communicating data. Machines in

Industry 4.0 mostly are Cyber-Physical Systems,

which integrated with ICT components. The

autonomous systems induced with internet of things

enable machines to make their own decisions based

on machine learning algorithms and real-time data

capture, analytics results, and recorded successful

past behaviors.

3.1 Industry 4.0 Framework

Figure 1: Industry 4.0 framework and contributing digital

technology

There are three indications that drive the

emergence of industry 4.0 as shown in Figure 1:

3.1.1 The Vertical and Horizontal Value

Chains Digitization and Integration

Industry 4.0 enables digitization and integration of

various processes vertically throughout the

organization, from development, manufacturing,

logistics, product purchasing, to customer service.

Every data are available real-time such as operations

processes, efficiency and quality management, along

with planning, it is all held by augmented reality and

optimized within an integrated network. Horizontal

integration expanses from operation in the internal

like suppliers to customers and all the stakeholders.

It comprises devices that can track and trace in real-

time and then using integrated planning for

execution.

Other than that, Industry 4.0 also revolutionizes

the companies’s portfolio in product and service for

the sake of satisfying customer needs with method

that is highly cost-effective. Businesses will have to

capable in responding immediately to market

environment changes and requirements of their

customer in order to guarantee that customers get

better flexibility and therefore, better services.

Usually, chain agility in better supply could mean

shorter process time and more flexibility in service,

but it could also mean more stores in need and

higher end to end supply chain costs.

Industry 4.0 implementation gives the upcoming

inventories and demand demand a better visibility

through the chain of supply. By using actual

information on site, volume, portfolio and

procedures throughout supply chain, the company

can give better reaction for customers’ needs. This

shared-information sharing can enable the

integration of supply chain such as acceleration the

response from upstream suppliers to downstream

logistics providers, decrease efficiencies and

improving the service in the chain of supply (IIPSI,

2015).

3.1.2 Product and Service Offerings

Digitization

Product digitization consists of developing existing

products such as by adding smart sensors or using

data analysis tools alongside communication

devices, and new fully integrated digital products

creation. By integrating new data collection and

analysis methods, companies can get information

about their products from customers and improve

Industry 4.0: Does Advertising Agency Ready to What’s Coming?

products to fulfill the growing needs of end

customers.

There has been recognition increase in the last 20

years that the distinction between a physical product

and a pure service are somehow blurring. The IoT

Technology can provide greater congruence to

products with cyber-physical characteristic. Like

offering better opportunity to replace the purchase of

a product with a service. For example, HP Instant

Ink use subscription-based business model. The new

model granted the user the ability to print a number

of pages per month for an agreed package fee, it is

guaranteed that there will never be a case that printer

run out of ink. The usage of ink and how much

pages were printed are smartly monitored through

the printer that enabling IoT system. In this model,

the customer still buys the printer, but the actual

printing is called a service. With this model, HP

offered a very clever win-win solution as customers

were offered a very efficient way to use printer and

HP Company can get better visibility information

regarding its demand in the market, building direct

relationship to the consumer and in the end it will

led them to more steady income. The model also has

a really big potential to the environmental benefit

due to integral part of the business model is

recycling the ink cartridges in a closed-loop.

But, challenges is still there as there are

customer’s choice, and while many customer may be

content with the availability of subscription based

services, many customer will resume favoring

ownership of a physical product. It is important for

industries to be mindful of every single opportunity

available as there is not even single right answer

available. Just in case, HP still sells conventional

printers and ink, as well as running the Instant Ink

subscription service. To see the most possibility that

cyber-physical age brought, it is vital to considerate

in opening up a new potential.

3.1.3 Business Models and Customer Access

in a Digital Way

With providing disruptive digital solutions such as

complete integrated platform solutions combined

with data-driven services, leading industrial

companies can expand their offering to its

customers. In the disruptive digital business models,

the companies often focused on generating

additional revenues in digital and enhancing their

customer interaction and access. Digital products

and services frequently look to serve customers with

complete solutions in a distinct digital ecosystem.

The Industry 4.0 giving the opportunity to

advance the business models that already existing.

For example, the retailers that do business by

catalogue now can grasp the chance to do online

business. Opportunity that industry 4.0 gave is

somewhat of revolutionary. It can be traced by the

initiation of platforms that could fulfill demand and

supply in gloriously new way is disrupting

traditional markets. Great examples include Grab,

Gojek, Traveloka, Tokopedia. It is highly serious for

businesses to ensure that they have business model,

which is always on the leading note and refreshed

regularly by bringing up every creative ideas.

Therefore, by considering the opportunities that

Industry 4.0 presents in terms of evolving a new

business model is a prominent way to identify

impending threat of new disruptive competitors.

The Internet of Things (IoT) is considered as an

ecosystem containing smart objects that equipped

with sensors, networking, processing technologies

integrating and working together to provide an

environment in which smart services are taken to the

end users (Asghari et al., 2019). The Internet of

Things (IoT), also called the Internet of Everything

or the Industrial Internet, is a new technology

paradigm planned as a global network of machines

and devices capable of interacting with each other.

The IoT is recognized as one of the most important

areas of future technology and is gaining massive

attention from a wide range of industries as it is one

of the technologies that the Industry 4.0 has greatly

relied in. The true value of the IoT for enterprises

can be fully realized when connected devices are

able to communicate with each other and integrate

with vendor-managed inventory systems, customer

support systems, business intelligence applications,

and business analytics, making its importance in

future technology (Lee and Lee, 2015a).

Today, the internet has became one of the

primary needs of human civilization. More than four

billion people are using the Internet as part of their

live like using internet for communication, do

google something for some enlightenment, or to

actively use social networking to get in touch with

others or any other activities. As the time goes on, a

lot of people have accessing to the vast information

that internet makes available. Internet making it

possible for gadgets and smart devices to connect,

communicate, coordinate and compute with each-

other. Now, the Internet has grown to be huge web

of networks with even more valuable information

and service made always available. It makes easier

for developer to introducing newer methods of

working, newer methods of communicating, design

ICVHE 2019 - The International Conference of Vocational Higher Education (ICVHE) “Empowering Human Capital Towards Sustainable

4.0 Industry”

newer applications, newer methods of entertainment.

Hence, making lives easier with newer ways of

living (Mehta et al., 2018). But, the Internet is still

growing, so within the next few years it has became

something else in its place in human civilization.

With The Internet of Things, the technology

turning out every day physical devices to smart

objects increasingly blurs the barriers between the

real and cyber worlds. This is a huge and

fundamental shift. When we start making things

intelligent, it is going to be a great engine for

creating new products and new services to improve

people’s everyday lifestyle, spawn new businesses

and make hospitals, factories, roads, airways,

offices, retail stores or other public buildings, going

smarter (Ouaddah et al., 2017).

The Internet of Things (IoT), though it can solve

problems and create opportunities for a variety of

entities, it may create new problems and raise

concerns and associated costs, such as those

pertaining to privacy (Weinberg et al., 2015). The

Internet of Things, an emerging global Internet-

based technical architecture facilitating the exchange

of goods and services in global supply chain

networks has an impact on the security and privacy

of the involved stakeholders (Lee and Lee, 2015b).

The Internet of Things (IoT) heralds a new era of

computing whereby every imaginable object is

equipped with, or connected to a smart device

allowing data collection and communication through

the Internet (Caron et al., 2016). Looking on

technology acceptance model (TAM), the IoT

acceptance model that possible to implement

consists of three technology factors (perceived

usefulness, perceived ease of use, and trust); one

social context factor (social influence); and two

individual user characteristics (perceived enjoyment

and perceived behavioral control) (Gao and Bai,

2014).

3.2 The Industrial Revolution in the

Advertising World

Leveraging the IoT for firm benefit involves

revisiting certain ideas that may have gone

unquestioned for a long time. Many advertising

agency revisiting their certain ideas of how they

work and found some unquestioned trouble for a

long time, with the challenges that coming in their

way and the way Industry 4.0 has present some new

opportunities for them it is their time to evolve their

business into making new business model that

disrupt the industry.

The rapid development of much more integrated

business operating models in which global

advertising agencies is to do the role of strategist

actively far from before. In agency governance, the

back-office contributing in revolution brought by

Industry 4.0 typically tactical in nature, not strategic,

in order to maintain long-term sustainability.

Transactional back-office activities are mostly to be

moved into global shared-services organizations.

These back-office role involve functions in finance

sector like liability, payroll, and invoice, and other

transactional HR services, development, and/or

nonstrategic IT services. Maintaining a country or

even regional governance to support agencies role in

serving each market is possible to create

efficiencies. It is known that the talent management

is perhaps most critically hit by the revolution

because the Industry 4.0 disrupt the integrated talent

management that already have been there for years

and as tech talent is most prized talent right now,

many agencies are suffering from losing their key

talent in creative or in IT field to tech companies.

Besides that, the production services in middle-

office category greatly affected by the Industry 4.0

because so many different market dynamics happen

here, from creative area, media, also management.

For instance, it is deem important that creative

content is dangerously in need to create unique

strategy for more across more media and platforms

but it is done mostly without additional budgets. As

a result, there are increasing competitiveness coming

from agencies, even with clients themself. Clients

are increasingly asking for cost transparency,

visibility into production supply chains, agency-

vendor relationships, and demonstration of careful

stewardship when working on client budgets.

All this call for the consolidation of agency

production services to produce demonstrable

efficiencies in production through price

normalization, project bundling, talent resource

management, volume discounts for commodities,

and consistent client reporting and analysis

(Pattheeuws et al., 2017). In short, the structure and

priorities of advertising agencies are changing.

Moreover, there are three new ways of advertising as

result of Industry 4.0.

3.2.1 Programmatic Advertising

A programmatic scenario in the advertising industry

includes advertisers who want to display ads and

who are willing to bid for them, an automated

bidding system (Exchange), and serving the ads to

the right audience. In other words, instead of calling

Industry 4.0: Does Advertising Agency Ready to What’s Coming?

a salesperson on a particular website, the industry

can use a system that receives information about

available ad space from hundreds of thousands of

websites and applications and suggests that you bid

on those sites to display your ads. Programmatic

systems can be very sophisticated and monitor users

by activity, device type, when they browse, websites

they have been to, and more. The entering process

takes place in less than a thousandth of a second.

The power of big data consist of gathering,

connecting and interpreting, automating and

exploiting every data in the internet, then together

with more qualitative and creative insights it is used

to create strategy out of customer immersion and

focusing, engaging, customizing, delivering,

supporting, and “design thinking” for what to do

with them. The most important about big data

power, is its ability to keep learning, about people,

and decide the best strategy for best result.

The digital advertising ecosystem makes it

possible for advertiser to try to track user activity

across the Internet and across devices as means to

identify their target audience and do inform the

advertising delivered to particular users in a

personalize way. Many will be familiar with cookies

and device advertising identifiers. Cookies, are

unique text files stored in a browser that allow a

company like advertising agency or any other

marketing consultant to identify the target by

accessing and tracking their website history (Asghari

et al., 2019).

3.2.2 Digital Advertising

Digital advertising method has lowered media costs

and made for advertiser to reach as many people as

they can. In the UK during 1980s, it was common

for the most watched TV shows to attract average

viewing of over 20 million viewers. Nowadays, it is

extremely remarkable for a televised show or event

to attract 12 million viewers or more than that

number. However, in the USA the most known

televised event, the Superbowl American Football

final can reach 100 million viewers. In the first sight

it seemed like astonishing number for advertiser, but

then the advertisement that appear in many

commercial breaks is highly expensive to buy.

The situation is not very different in radio

industry. As far as we concerned, the popularity of

radio is slowly going down. In the past, popular

radio station such as BBC radio once known as one

of the primary source of information and

entertainment for larger audiences. Today, they have

competition with digital radio stations that aim for

the largest slice of listeners with specialized format

in the form of commercial revenue. These changes

in the media landscape have major influences to the

advertisers. This change is contributed to the

emergence of internet as the main resource for

consumer about a brand that once shared through

mass media like TV, radio, or printed. The once

commercials ads that shown in TV now can be

advertise in Youtube with less cost and more actual

tracked ROI and so with social media(Ford and

Merchant, 2014; Hackley, n.d.).

The importance of strategic for audience

segmenting, targeting and cost-effectiveness in

media planning has been a challenge for advertiser.

The strategy of media planning now being highly

relevant for the advertising strategy as the greater

media impact has grown. Prominently, the account

service people and media planners can no longer

easily classify their target audience by external and

also unclear indicators like age, sex, social class, or

spending power. Instead they have to start thinking

with target’s point of view. From lifestyle choices,

brand consumption, communities they involve in,

media that they consume everyday, and its

implications in their lives. Using big data that stores

everything related to consumers that collected

trough the ecosystem of Internet of Things can solve

this. The account service people and media planners

now can start making persona based on information

that gathered from big data.

New media is still a term used in media

landscape even though most media in this category

are no longer new. Now, it is very common for

brands to create a special website, to offer a web-

based retail interface, and engaging consumers via

social media as part of advertisement of their

products. The potential for marketing

communications with targeted coverage, theme, and

media selection is clearly attractive to advertisers.

New agencies specializing in social media

management are emerging, using the reputation of

social media and its ability to target more accurate

consumer groups and attached them with direct-

response potential tailored messages in real time

trend.

Consumer’s pressure for through-the-line

communications integration is changing the

priorities of agencies that for once usually focused in

above-the-line media. The importance of media

agencies is highlighted because of the need for

integrated media solutions have increased. As a

result, many of media division that has been years

once part of advertising agency, become separate

businesses entity with more focusing work on

ICVHE 2019 - The International Conference of Vocational Higher Education (ICVHE) “Empowering Human Capital Towards Sustainable

4.0 Industry”

media. Furthermore, the once part social media

division is also emerging as a single entity to cater

the need of brand in terms of fame.

3.2.3 Modern Advertising

Modern advertising trends are changing in constant.

Mostly the changes driven by technology advances,

advertising media is becoming broader in terms of

reach and it can be done with less budget as it ever

been before. The Internet has turned it space into

advertisers low-cost playground. Advertising

campaign with email is way cheaper for advertiser to

spend money rather than traditional print campaigns

that is known for its costly price and its

environmental impact. The Internet also allows a

more direct and targeted approach to advertise. In

the email campaign, creative can conjured as

creative direct message as possible, resulted in a less

formal and more personalized alternative message to

traditional direct mail campaigns.

Beside technology driven changes there are

changes on how people look at a brand. Brand

reputation and identity are now built by the

customer’s reception when personal interaction with

the product happens, the product experience can

give great impact. This personal interaction that they

experience is coming from the collaboration of the

product, customer services and other communication

mediums offered to interact with the brand such as

help desks, suggestions boxes and technical support.

People only wanted to participate with brands

that have connection about them, brands that echo

their goals or shared values, and even brands that

connect them with other people who share their

values and goals. Brand stories are living tales,

created by the company that produces that brand, but

it is the people who interpreted and spreading it via

word of mouth. Content must be real time and

relevant, and keep moving forwards.

An excellent example is Carhartt’s hand-made

video campaign featuring Jason Momoa, its story

tying the glorious Hollywood reputation to their

Midwestern farming roots, Pacific Northwest

loggers, mechanics and families around the world

vision (Jason Momoa, 2017). Carhartt shows the

personal side of their products and how they haven’t

changed from their original dedication to durability

in tough situation by using Momoa’s personal story

and images of his family at play with their products

featured in all states of repair, It wonderfully

connects the products to a wide range of

environmental cause and (Fisk, n.d.).

Instagramers or Youtubers who they trust

replaces word of mouth in a digital world that once

led by public relation and celebrity endorsement.

Brand stories, advocates, and community building

help to guide and shape this influence as they feel

they had connection to certain Instagramers or

Youtubers.

3.3 The Industrial Revolution in the

Advertising World

The world face many social issues and environment-

related issues, such as global warming, as well as

human rights violations that are found in some

countries. Many of the issues has come to be

responsibility corporate because it activity in doing

business have a hand. The advertising industry being

no exception, the industry has to persevere in their

effort to manage the impact on the environment and

society.

It is common knowledge that advertisements

have a substantial influence on consumer behavior

as it persuade people to purchasing of such goods as

daily consumer items, and even often leading them

to once-in-a-lifetime major purchases. Although

being aware of the enormousness level of the impact

that advertising has on consumption, the industry

also have major duties in terms of the fairness of the

information content and of goods and services that

consumers purchase. Looking forward, the role that

should be played by the advertising industry is far

greater than what had been anticipated. As it comes

to environmental and social impact, advertising

companies have both direct and indirect impact.

Figure 2: Dentsu’s plan for supporting environmental

sustainability

On the deliberations, Dentsu established a plan

that outlines the mutual goal of the Dentsu Group in

Japan and overseas regarding ways to realize a

sustainable society, and through the promotion of

sustainable business activities. At the September

Industry 4.0: Does Advertising Agency Ready to What’s Coming?

2015, the Sustainable Development Goals (SDGs)

were announced by United Nations Sustainable

Development Summit as an action plan for

humanity, the Earth and prosperity (United Nations

Sustainable Development Summit, 2015). The plan

comprises 17 goals and 169 targets. The Dentsu

Group is contributing to the resolution of global

social-issues by providing a various collection of

value in the communications field. Dentsu are

helping to provide support for stakeholder SDG

initiatives by doing seminars and workshops. Just as

shown in Fig 2, there are four key areas for Dentsu

to focusing on: 1) Environment by reducing their

environmental footprint across their operations to

tackle climate change; 2) Community by doing CSR

for the sake of building more effective civil society;

3) Developing sustainable procurement practices for

more resilient supply chain; 4) Promoting a

sustainable society by implementing responsible

marketing practice (Dentsu Group, 2018).

Other than that, Dentsu also created the SGDs

Communication Guide for their employees, as it is

encouraging the employees to think more about their

advertisement-related and promotional activities in

connection with the SDGs. Furthermore, the Dentsu

Group along with the world’s several other top

advertising and marketing services groups (IPG,

Havas, Publicis, WPP, and Omnicom) is

participating in the groundbreaking initiative called

Common Ground. The Group is focused on Goal 3

in the SDGs, which is concerning health particularly

infectious diseases such as malaria and tuberculosis.

3.4 What to Do next

Figure 3: Blueprint for digital success in advertising

industry

Through Figure 3, there are several ways for

advertising industry people to do in order to thrive in

these challenges. First, mapping out advertising

industry strategy in industry 4.0 ways, this include

using more technology in utilizing daily work live

and always be wise and aware while doing it.

Second, create initial pilot project as means to

encourage creativity. Third, define the capabilities

that need and act on it, learn more by doing some

little task as an exercise. Fourth, become a virtuoso

in data analytics to get better understanding in

what’s going on or may be happen in the future.

Fifth, transforming existing operating model into

digital enterprise. The last, sixth, actively plan an

ecosystem approach by fundamentally rethinking

organizational and operational structure to better

serve clients.

ACKNOWLEDGEMENTS

The author is indebted to the Advertising Laboratory

of Communication Studies of Vocational Education

Program, Universitas Indonesia, my fellow lecturers,

and Prof. Dr Ir. Sigit Pranowo Hadiwardoyo, DEA

for the time, space, and valuable assistance during

the data collection.

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Industry 4.0: Does Advertising Agency Ready to What’s Coming?