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Canvsshould,
andwhyit
mattersin
data-driven
marketing
Exploring the relationship
between data, technology and ethics
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
There’sneverbeen
moredataandmarketing
technologythanthere
istoday.
•	 Dataproductionin2020
	 willhit35zettabytes—
	 44timesmorethanin2009.
•	 Between2011and2016,
	 thenumberofMarTech
	 solutionsincreased>2200%1
1. http://chiefmartec.com/2016/03/marketing-technology-landscape-supergraphic-2016/
2009 2020
2
sizeoftotaldata
enterprise-manageddata
enterprise-createddata
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Thepaceofdataexpansion
isastounding.
Drivenbythegrowthofdigital
technologiesandtherapid
increaseindatagenerationby
individualsandcorporationsalike.
Source: CSC
3
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Tosucceed,brandsneed
data-drivenmarketersto:
•	 Deliveraseamlessbrand
	 experiencebothonlineandoffline
•	 Understandandreact
	 tocustomerneedsand
	 behaviorsincontext
•	 Engagecustomersinmore
	 valuableandmeaningfulways
4
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Butasmarketersramp
uptheadoptionofnew
technologiesanddatato
competeandinnovate,
it’simportantwestop
andrealize…
Justbecauseyoucando
something,doesn’tmean
thatyoushould.
5
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Therehasalwaysbeen
adividebetweenwhat
marketerscandowith
customerdataand
technology,andwhat
customersdeem
tobeacceptable.
Inotherwords,
whatweshoulddo.
TechnicallyPossible
Legal
Acceptable
6
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Rightnow,ourtechnological
abilitiesareevolvingfaster
thaneverbefore.Ethical
considerationsneedtobe
designedintotheentire
developmentprocess—
fromconcepttolaunch.
Thecriticalquestionto
askisnot“canwe?”,
but“shouldwe?”
7
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Thetroubleis,innovation
oftenoutpacesboth
regulationandconsumer
awareness.
ShouldyourIoT-enabled
refrigeratorbeabletokeep
trackofhowmuchicecream
youeatinamonth,tallyup
thecaloriesandemailthem
toyournutritionist?
% Calories per month
from ice cream
8
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Shouldyourinternet-
enabledcarautomatically
reportspeedingtothe
insurancecompany,or
thepolice?
Shouldyournewfitness
trackerwithaheart
monitorbeabletosend
readingstoyourdoctor?
Orcall911ifyouare
havingaheartattack?
9
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Passingeffective
regulationtakestime…
Government-andindustry-
basedconsumerprotection
agenciesalreadyprovide
rulesaroundthecollection
anduseofdata.
TheFTC,FCCandother
regulatorscloselymonitor
howmarketersare
combiningdatasetstogain
newinsightsaswellashow
thoseinsightscanbenefit
consumers.
Buttheprocessof
passinganynew
regulationmakes
keepingupwith
innovationachallenge.
10
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Andconsumersaren’tsure
wheretodrawtheline
Consumersaretheultimate
arbitersofwhetherornot
theirdataisbeingused
ethically.Onlytheyknow
what‘acceptable’looks
like.Butit’salsocompletely
subjective,whichmeans
it’saschangeableasthey
arecertain.
Thatmeanswhenitcomes
tocrossingtheline,thelineis
alwaysmoving,sowehave
toacceptit’sacaseof,
“I’ll know it when I see it.”
11
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
It’spossibletobelegally
compliantbutstillin
breachofwhatyour
customersdeemto
beacceptableand
welcomeduseof
theirdata.
Thisputsyourreputation,
trustandloyaltyatrisk.And
leavesyouwithlittlecontrol
overthewayyourbrand
isperceived.
12
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
What’smore,thosesame
consumersareableto
expressthemselves
likeneverbefore.The
amplificationofone
complaintonsocialmedia
cangalvanizeandpublicize
manymorethatwouldhave
oncegoneunheard.
13
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Sohere’sthething–if
marketersrelyonconsumers
andregulatorstonavigate
andmakesenseoftheethics
andcapabilitiesgap,we’ll
alwaysbereacting.
Ontheotherhand,ifwe
definethestandardsforthe
ethicaluseofdata,wecan
starttoproactivelybuild
trustacrossbrandsand
theconsumerstheyserve.
14
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Wehavetobridge
thisgaptogether.
Asresponsiblemarketers
weneedtoactnowby,first,
acknowledgingthatmerely
complyingwithregulation
willneverbesufficient
andsecond,startinga
conversationwithour
consumersabouthow
theirdataisused.
15
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Tacklingthisproblem
attheethicalratherthan
legallevelmeansprotecting
hard-woncustomerloyalty
bygoingbeyondwhatthe
lawrequires.Thisisabout
differentiatingyourbrand
withclearlydefined
governancearoundtheuse
ofcustomerdata.
16
5guidelines
fortheethical
useofdata
AcxiomCorporationhosted
auniqueforumattheNational
PressClubinWashington,
D.C.,toaddresstheethical
challengesofbigdatain
today’sdata-driven
marketingecosystem.
Thegroupidentified
five guidelines:
17
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Maximizetransparency
andchoice
Postedprivacypolicies
mustbeclearabouthow
thebrandintendstouse
andshareconsumerdata
formarketingpurposes.
#1
18
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Classifydataand
mitigatepossibleuserisks
Differentclassifications,
suchassecond-orthird-
partydata,willhelpidentify
possibleuserisksandthe
appropriatemitigations.
#2
19
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Limitdownstreamrisks
Whensharingdata,
providersshould
havecontractswithall
downstreamdatausers
toensureappropriate
use.Consumerdata
shouldbeanonymized
whereverpossible.
#3
20
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Helptoenforce
ethicalpractices
Haveprivacydiscussions
withyourmarketing
partnersearlyandoften.
Theecosystemshould
haveadefinedprocess
forinvestigatingandtaking
appropriateactionagainst
badactors.
#4
21
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Educateconsumers
aboutcommon
marketingpractices
Theindustryasawhole
shouldseektoeducate
consumersaboutcommon
practicessotheycan
exercisethechoicesthey’re
offeredinaninformedway,
withoutfearoftheunknown.
#5
22
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Let’sbehonest,openingadialogue
withtheaimofdevelopinganindustry-
wideconsensusisnoteasy.
23
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Buttheconsumerreactionshave
alreadybegun.Adblockers,adand
appchoicesopt-outareallexamples
ofaconsumerfight-backagainstwhat
theyfeeltobeinvasive,opaqueand
untrustworthyusesoftheirdata.
24
Weneedanew,
ethics-ledapproach
tosolutions.
Otherwisewe’ll
alwaysbebehind
theball.
25
Ifweactnow,we
canmaintainthe
flowofinformation
andcontinueto
innovatewith
newtechnologies
withoutfearorharm.
26
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Mostimportantofall,
itmeansearningour
customers’trustbyputting
ethicsattheheartofwhat
wedowiththeirdata.
27
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
Readourebook:
TheNewCodesofConduct:Guiding
PrinciplesfortheEthicalUseofData
foramorein-depthexplorationofwhat’s
atstakeandwhatittakestogetthisright.
28
Acxiomprovidesthedatafoundationfortheworld’sbest
marketers.Weenablepeople-basedmarketingeverywhere
throughasimple,openapproachtoconnectingsystemsand
datathatdrivesseamlesscustomerexperiencesandhigher
ROI.Aleaderinidentityandethicaldatausefornearly50years,
Acxiomhelpsthousandsofclientsandpartnersaroundthe
globeworktogethertocreateaworldwhereallmarketing
isrelevant.AcxiomisaregisteredtrademarkofAcxiom
Corporation.Formoreinformation,visitAcxiom.com.
www.acxiom.com
Exploring the relationship between data, technology and ethics:
Can vs should, and why it matters in data-driven marketing
AC-0857-18 6/18

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Can vs Should and Why it Matters in Data-Driven Marketing

  • 2. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing There’sneverbeen moredataandmarketing technologythanthere istoday. • Dataproductionin2020 willhit35zettabytes— 44timesmorethanin2009. • Between2011and2016, thenumberofMarTech solutionsincreased>2200%1 1. http://chiefmartec.com/2016/03/marketing-technology-landscape-supergraphic-2016/ 2009 2020 2
  • 3. sizeoftotaldata enterprise-manageddata enterprise-createddata Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Thepaceofdataexpansion isastounding. Drivenbythegrowthofdigital technologiesandtherapid increaseindatagenerationby individualsandcorporationsalike. Source: CSC 3
  • 4. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Tosucceed,brandsneed data-drivenmarketersto: • Deliveraseamlessbrand experiencebothonlineandoffline • Understandandreact tocustomerneedsand behaviorsincontext • Engagecustomersinmore valuableandmeaningfulways 4
  • 5. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Butasmarketersramp uptheadoptionofnew technologiesanddatato competeandinnovate, it’simportantwestop andrealize… Justbecauseyoucando something,doesn’tmean thatyoushould. 5
  • 6. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Therehasalwaysbeen adividebetweenwhat marketerscandowith customerdataand technology,andwhat customersdeem tobeacceptable. Inotherwords, whatweshoulddo. TechnicallyPossible Legal Acceptable 6
  • 7. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Rightnow,ourtechnological abilitiesareevolvingfaster thaneverbefore.Ethical considerationsneedtobe designedintotheentire developmentprocess— fromconcepttolaunch. Thecriticalquestionto askisnot“canwe?”, but“shouldwe?” 7
  • 8. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Thetroubleis,innovation oftenoutpacesboth regulationandconsumer awareness. ShouldyourIoT-enabled refrigeratorbeabletokeep trackofhowmuchicecream youeatinamonth,tallyup thecaloriesandemailthem toyournutritionist? % Calories per month from ice cream 8
  • 9. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Shouldyourinternet- enabledcarautomatically reportspeedingtothe insurancecompany,or thepolice? Shouldyournewfitness trackerwithaheart monitorbeabletosend readingstoyourdoctor? Orcall911ifyouare havingaheartattack? 9
  • 10. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Passingeffective regulationtakestime… Government-andindustry- basedconsumerprotection agenciesalreadyprovide rulesaroundthecollection anduseofdata. TheFTC,FCCandother regulatorscloselymonitor howmarketersare combiningdatasetstogain newinsightsaswellashow thoseinsightscanbenefit consumers. Buttheprocessof passinganynew regulationmakes keepingupwith innovationachallenge. 10
  • 11. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Andconsumersaren’tsure wheretodrawtheline Consumersaretheultimate arbitersofwhetherornot theirdataisbeingused ethically.Onlytheyknow what‘acceptable’looks like.Butit’salsocompletely subjective,whichmeans it’saschangeableasthey arecertain. Thatmeanswhenitcomes tocrossingtheline,thelineis alwaysmoving,sowehave toacceptit’sacaseof, “I’ll know it when I see it.” 11
  • 12. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing It’spossibletobelegally compliantbutstillin breachofwhatyour customersdeemto beacceptableand welcomeduseof theirdata. Thisputsyourreputation, trustandloyaltyatrisk.And leavesyouwithlittlecontrol overthewayyourbrand isperceived. 12
  • 13. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing What’smore,thosesame consumersareableto expressthemselves likeneverbefore.The amplificationofone complaintonsocialmedia cangalvanizeandpublicize manymorethatwouldhave oncegoneunheard. 13
  • 14. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Sohere’sthething–if marketersrelyonconsumers andregulatorstonavigate andmakesenseoftheethics andcapabilitiesgap,we’ll alwaysbereacting. Ontheotherhand,ifwe definethestandardsforthe ethicaluseofdata,wecan starttoproactivelybuild trustacrossbrandsand theconsumerstheyserve. 14
  • 15. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Wehavetobridge thisgaptogether. Asresponsiblemarketers weneedtoactnowby,first, acknowledgingthatmerely complyingwithregulation willneverbesufficient andsecond,startinga conversationwithour consumersabouthow theirdataisused. 15
  • 16. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Tacklingthisproblem attheethicalratherthan legallevelmeansprotecting hard-woncustomerloyalty bygoingbeyondwhatthe lawrequires.Thisisabout differentiatingyourbrand withclearlydefined governancearoundtheuse ofcustomerdata. 16
  • 18. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Maximizetransparency andchoice Postedprivacypolicies mustbeclearabouthow thebrandintendstouse andshareconsumerdata formarketingpurposes. #1 18
  • 19. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Classifydataand mitigatepossibleuserisks Differentclassifications, suchassecond-orthird- partydata,willhelpidentify possibleuserisksandthe appropriatemitigations. #2 19
  • 20. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Limitdownstreamrisks Whensharingdata, providersshould havecontractswithall downstreamdatausers toensureappropriate use.Consumerdata shouldbeanonymized whereverpossible. #3 20
  • 21. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Helptoenforce ethicalpractices Haveprivacydiscussions withyourmarketing partnersearlyandoften. Theecosystemshould haveadefinedprocess forinvestigatingandtaking appropriateactionagainst badactors. #4 21
  • 22. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Educateconsumers aboutcommon marketingpractices Theindustryasawhole shouldseektoeducate consumersaboutcommon practicessotheycan exercisethechoicesthey’re offeredinaninformedway, withoutfearoftheunknown. #5 22
  • 23. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Let’sbehonest,openingadialogue withtheaimofdevelopinganindustry- wideconsensusisnoteasy. 23
  • 24. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Buttheconsumerreactionshave alreadybegun.Adblockers,adand appchoicesopt-outareallexamples ofaconsumerfight-backagainstwhat theyfeeltobeinvasive,opaqueand untrustworthyusesoftheirdata. 24
  • 27. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Mostimportantofall, itmeansearningour customers’trustbyputting ethicsattheheartofwhat wedowiththeirdata. 27
  • 28. Exploring the relationship between data, technology and ethics: Can vs should, and why it matters in data-driven marketing Readourebook: TheNewCodesofConduct:Guiding PrinciplesfortheEthicalUseofData foramorein-depthexplorationofwhat’s atstakeandwhatittakestogetthisright. 28