The controversial ad targeting technology platform, Phorm, has announced it has received crucial backing from the UK government in response to regulators’ concerns over whether Phorm and its OIX (Open Internet Exchange) conforms to EU data laws.
Phorm, whose approach of behaviourally targeting consumers via personal information used in signing up to their ISP has concerned media and consumer groups, is partnering with major ISPs to carry out trials across their network of users. So far only BT has confirmed it will be starting a trial, but soon Phorm hopes to roll out trials across all ISPs once successful discussions have taken place.
Users will be given power to opt-in or out of the scheme and Phorm states all future trials will be done with the full consent of users. Phorm, which states its approach actually protects rather than infringes consumer privacy, has said it is working with the media, regulators, government and bloggers to ensure full transparency of all aspects of the OIX and has already agreed terms with several leading UK ad agencies, publishers and ad networks.
As an advertiser Phorm presents a wealth of opportunities in targeting consumers in terms of fully tracking user journeys, but as a consumer it still raises questions and objections over privacy.
Phorm, whose approach of behaviourally targeting consumers via personal information used in signing up to their ISP has concerned media and consumer groups, is partnering with major ISPs to carry out trials across their network of users. So far only BT has confirmed it will be starting a trial, but soon Phorm hopes to roll out trials across all ISPs once successful discussions have taken place.
Users will be given power to opt-in or out of the scheme and Phorm states all future trials will be done with the full consent of users. Phorm, which states its approach actually protects rather than infringes consumer privacy, has said it is working with the media, regulators, government and bloggers to ensure full transparency of all aspects of the OIX and has already agreed terms with several leading UK ad agencies, publishers and ad networks.
As an advertiser Phorm presents a wealth of opportunities in targeting consumers in terms of fully tracking user journeys, but as a consumer it still raises questions and objections over privacy.
- Sam
1 comment:
agreed, this system and those like it are the holy grail of future advertising. the theory of less advertising better targetted, less is more, more quality, less quantity etc are all great. on top of this with digital delivery systems slowly but surely replacing broadcast it's only a matter of time before this is delivered across TV content. the problem occurs when it takes a start up company with a bad history in malware / spyware and little technical knowledge of Telco network infastructure, data law, privacy law and copyright law to push the industry forward.
as far as i can tell there are a few problems with phorms approach. using direct user inputs i.e. searches, emails etc (DPA, privacy), placing of java script on sites to drop cookies (copyright) and technically terrabytes of data which has a huge value and a huge cost to store too.
looking at white listing interesting sites (perhaps with consent), running activity on a proxy basis and not looking at DPI direct user inputs would help a lot in many ways.
bottom line, this type of targetting makes absolute sense if used appropriately and responsibly for consumers and advertisers. it will not triple ad budgets but divert them through a better system ensuring better value for money and arguably less spend due to decrease in wastage. however, if they are forced to do opt in instead of opt out, even with BT they may only end up with a pretty impotent proportion of the population.
you wouldhave better luck deploying and developing in korea chaps before you roll it out over here (which i am sure they are trying to do anyhow)
sorry, had to pop in my 2 pence worth
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