Phorm faces more hurdles

Differences of opinion over strategy have been cited as the main reason behind the Chairman, COO and two non-executive directors walking out on the controversial behavioural targeting technology company, Phorm.

The news was announced by Phorm in a statement. One of the employees, Stephen Heyer, the non-executive chairman, only joined the company in August.

Three non-executives have already been replaced with former chancellor of the exchequer Norman Lamont, former Ofcom chief policy partner Kip Meek and investment banker Stefan Allesch-Taylor. The CEO commented, “They bring extensive experience on government, business, regulatory matters and financial markets."As we move into the next phase of our development, the priority will be to build momentum in the rollout of our strategy."

Phorm has faced a number of hold-ups since the launch of its behavioural tracking system, the OIP (Open Internet Exchange), due to concerns it breaches the privacy of internet users, but it appeared to be on track after receiving backing from the UK Government in September (see blog posting on 22nd September '08). Watch this space for more Phorm updates when we have them.

- Sam

Microsoft’s Atlas Launches Engagement Mapping and E-ROI

New reporting methodology from Atlas has been launched today. Engagement Mapping, which calculates the value of all online media exposure, allows marketers to uncover deeper marketing insights such as the value of every advertiser to consumer touchpoint, new user behavioural insights across sites and channels, and the more accurate measurement of online conversions.

Atlas identified that Search is frequently given the credit for encouraging the desired user click, as it is often the last action driving a consumer to a particular site, whereas the consumer could have been exposed to several different advertisements in the time leading up to this ultimate action. Engagement Mapping has been created to measure this build-up of exposure and is time-credited to provide more accurate mapping.

In beta since spring 2008, Engagement Mapping and E-ROI are being presented as additional services from Atlas, rather than replacing their existing offering. It is available to all clients at no extra charge, so for more information and a demonstration do get in touch with your local Atlas representative.

- Sam

UK Government Backs Controversial Phorm

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.

- Sam

Google Launches Free Browser in its Ongoing Battle with Microsoft

Following straight on from Microsoft’s announcement of its latest version of Internet Explorer with its “InPrivate” setting, (which can block third parties accessing users’ browser habits), Google has announced it is launching its own free web browser in 100 countries, Google Chrome.

Google Chrome will also feature its version of "InPrivate," "Incognito Mode," which it says is for “times when you want to browse in stealth mode, for example, to plan surprises like gifts or birthdays. Webpages that you open and files downloaded while you are incognito won't be logged in your browsing and download histories; all new cookies are deleted after you close the incognito window. You can browse normally and in incognito mode at the same time by using separate windows.”

Microsoft's Internet Explorer currently accounts for 72% of the installed browser market, followed by Mozilla Firefox (of which Google is a key partner) with 20%. Google and Firefox recently renewed their partnership agreement until 2011 which contains a clause for Google to be the default search engine within Firefox.

There is whisper that Google’s next step is to partner with OEMs (Original Equipment Manufacturers) to create Windows-free PCs. Google’s strategy of launching internet based applications, such as its Google documents and spreadsheets, aims to shift its users’ habits away from Windows applications, but of course means it is increasingly reliant on browser technology, as acknowledged by Google vice-president of product management, Sundar Pichai, "We realised that the web had evolved from mainly simple text pages to rich, interactive applications and that we needed to completely rethink the browser. What we really needed was not just a browser, but also a modern platform for web pages and applications, and that's what we set out to build."

Check out the official Google Chrome blog site here.

- Sam

New Research Suggests Mobile Advertising Lifts Brand Metrics and Purchase Intent

Dynamic Logic recently announced the aggregate results of mobile branding research studies which compared people exposed to the mobile campaigns to those not exposed, suggesting that mobile advertising can be an effective medium for raising brand metrics throughout the purchase funnel.

An average increase of +23.9 percentage points in Mobile Ad Awareness shows that these campaigns generally cut through and grab users' attention. Average increases in Brand Favourability and Purchase Intent of +5.4 and +4.7 percentage points, respectively, support the ability of mobile advertising to change consumers' attitudes towards a brand and to drive intent to purchase.

Mobile Advertising Impact on Brand Metrics:

Significant Metric Positive Impact (Delta % of respondents)
Mobile ad awareness 23.9%
Message association 12.2
Aided brand awareness 6.9
Brand favourability 5.4
Purchase intent 4.7

Source: Dynamic Logic AdIndex, July 2008 (Delta is % of respondents positively impacted by mobile ad exposure. Initial study considered small sample size)
N.B.: These findings are based on 21 mobile ad campaigns across a variety of industries. (Alcohol, Automotive, Consumer Electronics, CPG, Entertainment, Financial Services, Retail, Telecomm, Travel) The averages could significantly change as the number of campaigns increases, so any comparison made to them is directional.

The report posits that part of the reason for these positive increases may be a result of the newness of the medium. People may be intrigued and pay more attention to the advertising on their mobile phone since it is presented on a smaller screen and is located in a less cluttered environment compared to the Internet.

Michelle Eule, Managing Director of Dynamic Logic, says "... As we do more studies, we continue to build these initial averages into a normative database that can be used for a more granular look into the mobile data... (the) same way our... database is used for online performance benchmarking and planning."

Kevin Arrix, Senior Vice President, Digital Sales, MTVN Networks, notes that "These averages clearly demonstrate to marketers that mobile is an increasingly powerful medium for communicating ad messages and engaging with today's consumer... Having initial averages to compare a campaign's performance against can serve as a guideline to what's working and what's not in these early stages of the medium."

For more information, please visit Dynamic Logic.

Microsoft’s latest version of Internet Explorer challenges click-through advertising

Microsoft has launched an updated version of Internet Explorer (8) to include “InPrivate” settings which allow users to visit websites without disclosing their browsing habits, thereby eliminating unwanted ads.

“InPrivate,” available on Explorer 8 and currently only in Beta version, lets users see in advance what content is being delivered from third party sites. Users can then choose to block the content, including advertising and software. Web cookies are then deleted when the tab is closed.

It certainly proves a challenge to the advertising models of its rivals, including Google’s DoubleClick, which delivers targeted advertising to users based on their browsing behaviour.

- Sam

'Typical Day' Search Usage: U.S. data

http://www.pewinternet.org/pdfs/PIP_Search_Aug08.pdf

The Pew Internet and American Life Study just released their lastest study (see link above). It is focused on how users interact with search engines in a 'typical day'. As consolidated by Rob Garner, here are some of the top level findings below. While this is U.S. based data, I feel that these are interesting areas for us to explore in the types of people engaged with our search campaigns.

The sample group consisted of 2,251 adults, ages 18 and older, surveyed between April 8 and May 11, 2008. The big question in the survey was, "Did you happen to [use an online search engine] yesterday, or not?" -- and yielded 1,553 who said "yes."

- Since 2002, the number of Internet users who search at least once a day has risen from approximately one-third, to almost half, or 49%.

- Overall, the amount of daily search users grew 69% between 2002 and 2008.

- While coming in a close second to email in this study, search beat out other daily Internet activities such as reading the news (39%), checking the weather (30%), researching a hobby (29%), surfing for fun (28%), and visiting a social networking site (13%).

- Daily searchers are more likely to be "socially upscale" and college educated, with an income of $50,000 or more per year.- Searchers with incomes of $75,000 or more were the most active daily searchers (62%), followed by $50,000-$75,000 level, at 56%.

- Internet users with broadband connections were much more likely to search than those with dial-up at home (58% vs. 26%).- Users between the ages of 18-29 and 30-49 were higher-than-average daily searchers (55% and 54% respectively). Of searchers 65 and older, only 27% were daily search users.

- Data dating back to 2002 suggests that men who use the Internet have been more active daily search users.

- Men are generally more aware of the differences between paid and natural search. The study found that men say they have searched more frequently, and are more confident in their search abilities.