Dive summary:
- Building relationships between marketing and data security teams is a growing priority for CMOs, but a third of those partnerships struggle to collaborate, according to a new report from the CMO Council and KPMG.
- Of the marketers surveyed, 79% believe marketing-security partnerships are critical to securing customer data and delivering a competitive advantage. These relationships may be underutilized, with nearly a third of teams only communicating in times of crisis.
- New threats are emerging, with 84% of marketers believing artificial intelligence (AI) and machine learning could impact data security. In recent years, CMOs have seen more and more data fall under their control as brands grapple with the loss of their advertising signal.
Dive Overview:
CMOs’ concerns about data security are on the rise as their roles increasingly take on functions related to first-party data, customer relationship management and AI. Consumer brand marketers have become more active stewards of sensitive customer information as traditional methods of targeting and measuring digital campaigns, such as third-party cookies, lose popularity or come under greater regulatory scrutiny. Some categories, including retail, are also developing digital ad networks that rely on shopper data, raising the stakes if that data is mismanaged.
The report says that failing to properly handle customer information or, worse, being the victim of a hack or breach could harm consumers and damage a brand’s perception. Conversely, a brand known for having additional data security safeguards in place could improve its reputation.
“A strong marketing-security partnership preserves brand reputation in an environment of privacy concerns. A strong commitment to security can also help strengthen the brand,” Donovan Neale-May, executive director of the CMO Council, said in a statement. “Conversely, a weak partnership can lead to data disasters that erode brand reputation and customer and employee trust.”
CMOs typically understand the importance of data security relationships, but collaboration often only happens when there’s a problem to extinguish. In newer data security partnerships, campaign collaboration sometimes doesn’t even happen.
According to the report, more regular data security hygiene helps prevent crises and keeps CMOs informed about upcoming threats. That said, 33% of CMOs believe data security organizations are reluctant or unwilling to work together, creating a communication barrier.
The emergence of generative AI tools like ChatGPT has been highlighted as a major area of concern. Marketers have taken a cautious approach to AI, but see it as a way to potentially improve efficiency, creativity, and personalization. How AI acquires and applies data can be opaque and even lead to legal issues.
“As marketers look to leverage AI, customer behavioral data and the Internet of Things to personalize customer interactions, they present significant security risks,” Bret Sanford-Chung, managing director of U.S. marketing consulting at KPMG, said in a statement.
The CMO Council and KPMG findings are based on surveys of more than 256 marketing leaders across industries and geographies, as well as qualitative interviews with executives.
