BT, TalkTalk, And Virgin Media Sign With Phorm; Orange Ad Network Regroups
Three ISPs BT (NYSE: BT), TalkTalk and Virgin Media—representing 70 percent of the British ISP market—have signed on to join advertising technology company Phorm’s new ad platform that will give them a cut of more targeted online ad sales. The platform, the Open Internet Exchange (OIX) is based on an internet surfer’s anonymous browsing activity, which the company claims ensures that consumers receive fewer irrelevant ads.
Unlike traditional web ad services, OIX is embedded into the back end of the ISP, which means the platform can track a consumer’s web surfing across all web sites. It uses anonymised ISP data streams to create customer advertising “channels,” or groupings of surfers who demonstrate interest in specific products and service categories and then uses this information to serve relevant ads based on a user’s browsing activity. The user and their internet IP address remain anonymous. Advertisers are ensured their messages are more targeted, while web sites can charge more as the ads presumably deliver better click through rates. ISPs get a cut as the platform is integrated into their own technology.
Phorm has already signed on Ft.Com and iVillage, among other web sites, as well as ad agency Universal McCann. The company hopes to sign on more ISPs in the future (release). In the US, a similar start up NebuAd received $30 million in funding.
In other online advertising news, NMA reports that a majority of its publisher sites have pulled out of the Orange Ad Network. The network is said to be working a new strategy after Allapprovedcars, Sidestep and TV Guide quit the platform and signed on with rival sales houses. According to Neil Packham, sales director for Portfolio Europe, which owns Allpprovedcars, said the Orange Ad Network was limited in the number of advertisers it could represent, as it could not represent rival ISPs or network operators. Packham reported, “The revenue never got where Orange said it would.” Orange said it plans to trial and roll out new services that will offer more ad opportunities for clients.
Posted In: Advertising, Companies, BT, Virgin, Virgin Media
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Comments (3)
Feb 29, 2008 8:23 PM
Given that anonymity is *not* guaranteed by this scheme, and that it involves transfer of URLs, keywords, web page content and hence data such as credit card numbers to servers in China (by Phorm, not the ISPs), there may be some resistance to this scheme from the paying customers who get zero benefit but are exposed to huge risk.
Mar 10, 2008 5:19 AM
Hi R Barnett,
I’m a member of the Phorm team so just wanted to clarify a couple of points on your comment - hope that’s OK.
Users are anonymous to the system - just represented by an anonymous random number.
No sensitive data like credit card numbers or names are observed by the system - for instance the system ignores all form fields. Nor does Phorm’s technology analyse SMTP mail or the content of webmail
sites.
The URL’s, keywords and search terms observed are used to draw an advertising conclusion and then that data is deleted in real time before the pages are loaded - so no data is stored by the system.
Phorm can never know who you are or where you’ve browsed. All that is ever
stored is a random number, advertiser categories eg sport or travel and a
time stamp - and this is kept within the system which is within the ISPs network. So it’s not sent anywhere - least not to China - Phorm does not have servers in China.
Meanwhile there are considerable advantages for the user - in better security - anti phishing protection and a better browsing experience through fewer more relevant adverts.
If you do have more questions drop us a line at. Please mail .(JavaScript must be enabled to view this email address)
Best wishes
Phorm Techteam
Mar 14, 2008 8:33 AM
Hi TechTeam,
Could you respond to the accusation that your breaking copyright law?
http://www.badphorm.co.uk/e107_plugins/forum/forum_viewtopic.php?1037.0#post_1247
Many thanks.