For a while now, behavioural targeting has been seen as perhaps the
great white hope for online publishers. Tracking the online user
journey, behavioural targeting solutions promise publishers a way of
monetising effectively based on users overall access habits
Phorm’s ability to taget ads is based on relationships with major ISPs
such as BT, Virgin Media and TalkTalk (Carphone Warehouse,) who
between them according a recent Guardian article control about 75% of
the UK ISP market. This access allows Phorm to build up a picture of
users interests based on their browsing history.
Phorm to be fair hasn’t had the best press here in the UK, mainly due
to trails with BT where users behaviour was monitored without their
consent. The invited the inevitable comparisons with Big Brother (from
the work of George Orwell, not the unending tedium of the TV series,)
and concerns about the inappropriate collection and use of data
without consent.
Heavyweight figures, notably Tim Berners-Lee stated their unhappiness
with Phorm’s activities, escalating a level of negative coverage which
has not only impacted heavily on Phorm but on behavioural targeting as
a whole. My own previous company for example is looking to launch an
interest based solution which sounds suspicously like behavioural
targeting.
The interest and disparaging of Phorm is in some ways exceptional, and
appears to be based mostly on the fact that it was done without
consent. Users appear to be happy with GMail serving up ads based on
the contents of their personal correspondence, or opting in for
emails, not to mention supermarket loyalty cards.
People seem to be happy giving up information, if they know what
they’re getting into and can expect something back for it, like
discounts, free email etc. Perhaps more targeted advertising just
wasn’t enough in this case.
The news therefore that BT are jumping off the Phorm bandwagon
shouldn’t come as much of a surprise. What it means for how the
industry will develop in future remains to be seen.
Rob MD of on-e the monetization solutions expert