CMOs, keen to address consumer and regulatory concerns around data-driven marketing, say the complexity of the data and digital ecosystem is making it hard for them to identify the right practical measures to take.
World Federation of Advertisers research shows most CMOs (92%) at multinational companies are prioritising an ethical approach to their use of data.
But half (50%) do not know what this means when it comes to the processes and practices they need to apply both internally and across their marketing supply chains.
The results are based on 12 responses from global CMOs who sit in the WFA’s CMO Forum, which represents brands spending more than $US120 billion each year.
And while 60% says data ethics is a priority, many are held back by the associated costs (25%) and the need for requirements such as recruiting new expertise, broader staff training and development of new policy guidance (16%).
Stephan Loerke, CEO of the WFA: “The widespread unease with the way data is used in advertising is bringing a tidal wave of pressure on brands and the entire data-driven marketing ecosystem.
"Only an ethics-driven response will adequately address the challenges and meet the legitimate expectations of consumers.
"However, data ethics is complex and often remains an abstract concept, that is not properly understood in practice. This must-read guide helps CMOs unpack the different facets of data ethics and guides them on the path to doing the right thing with data."
Other key findings:
- 50% of CMOs are very concerned about the level of privacy compliance among their external partners and suppliers (e.g. publishers, ad tech, online platforms and data brokers);
- 83% are very concerned about being associated with a service provider or supplier that is investigated for the unethical use of data;
- Only 16% are very confident that their company’s use of AI and machine learning will not create harmful unintended consequences for their consumers such as bias, unfair discrimination or unfair exclusion;
- 85% are considering using privacy-preserving alternatives to programmatic advertising in response to increased regulatory scrutiny;
- 33% believe that their marketers are consciously avoiding using data in a way that exploits vulnerabilities (e.g. unfairly excludes certain audiences, fuels unhealthy consumption patterns or polarises opinions);
- 41% say data ethics has become an integral part of their organisation’s culture.
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