As data continues to shape the marketing landscape, understanding privacy implications is crucial for industry leaders. MMA Global, in collaboration with AppsFlyer, has released the report “State of Data Privacy: Three Schools of Privacy and the Rise of PETs in the Age of AI,” offering a comprehensive view of data privacy’s current state and future trajectory. This report introduces a new framework for approaching privacy as a source of competitive advantage.
Key Themes and Findings by MMA Global & AppsFlyer
One of the primary themes from this year’s survey by MMA Global, in collaboration with AppsFlyer, is that while foundational compliance has been established, there is a growing need to enhance privacy maturity. The study reveals a gap in providing true choice and control to consumers and highlights the need for more investment in training and awareness.
Three distinct orientations to data privacy emerge depending on who owns the data privacy strategy within the organization and the underlying data assets available to the company.
- Classic Privacy Orientation: This is typically owned by the Chief Privacy, Security, or Legal Officer. It is common in companies with significant data volumes, where the approach centers around security and risk mitigation.
- Technology Orientation: Managed by the Chief Data Officer (CDO) or Chief Information Officer (CIO), this orientation is linked to organizations focusing on value extraction from data and prioritizing data quality. A technology-driven approach to privacy aims for a better value exchange with consumers, enhancing access to personal data.
- Marketing Orientation: Led by the Chief Marketing Officer (CMO), this orientation is more common in companies with lower data access but higher experimentation with various data signals. When CMOs lead privacy efforts, they tend to prioritize brand reputation and marketing outcomes from their privacy initiatives.
Challenges and Opportunities
Despite the increasing focus on data and its associated risks, privacy is not yet an urgent topic for many marketers. It is primarily seen as a necessary management issue rather than a source of competitive advantage. In fact, only around 50% of the businesses in this report considered data privacy and security a significant threat from GenAI and were willing to take actions.
However, marketers are becoming aware that compliance alone is not sufficient. Enhancing privacy maturity involves mitigating privacy risks throughout the data lifecycle and integrating privacy into the organization’s operations, systems, and culture.
Besides, marketers continue to focus on increasing the value and volume of their data but face challenges related to data quality and speed. Within the classic privacy context, a company’s privacy orientation is linked to its data assets, limitations, and goals:
- Classic Privacy Ownership: Typical for companies with significant data volume and corresponding value.
- Technology Ownership: Linked to organizations with a strong focus on data value extraction and quality.
- Marketing Ownership: Common in companies with lower data access but higher experimentation with various data signals.
Privacy Enhancing Technologies (PETs)
As privacy risks gain importance, privacy-enhancing technologies (PETs) are becoming a significant area of focus. PETs help organizations enhance their privacy practices by providing tools and technologies that ensure data protection and compliance.
While most organizations prioritize proactive privacy practices, there is still room for improvement in providing true choice and control to consumers. Additionally, there is a need for more training and awareness to foster a privacy culture within organizations.
By addressing these challenges and leveraging privacy as a competitive advantage, businesses can enhance their marketing efforts, improve customer trust, and drive growth in an increasingly data-driven landscape.
Conclusions from the report by MMA Global & AppsFlyer
The “State of Data Privacy: Three Schools of Privacy and the Rise of PETs in the Age of AI” report by MMA Global, in collaboration with AppsFlyer, underscores the necessity for businesses to evolve their data privacy strategies beyond mere compliance. By adopting advanced privacy practices and investing in PETs, companies can turn privacy into a strategic asset. The three distinct orientations—Classic Privacy, Technology, and Marketing—offer tailored approaches for different organizational needs. Ultimately, businesses that prioritize data privacy will not only meet regulatory requirements but also build stronger, trust-based relationships with their customers.
