Mike Cansfield
Internet advertising: Good news for those in the UK fed-up with the barrage
The Internet is essential to modern lives. At home there is often a fight (occasionally literally) to get on the computer and surf the net. From kids doing homework to adults looking for holidays and fridges, it is part of life in the home. And the office is the same - replace homework with research and holidays with business flights and the office is like home. As we work in the communications sector we all understand the importance of advertising in monetising the Internet, but random adverts that mean nothing to my eyeballs are simply annoying, especially when you are in a hurry. Targeted advertisements have always been the industry's answer to this but with them come a greater threat to consumer's privacy. Phorm believes it has found the right balance between the two. This morning the advertising technology firm Phorms announced it had reached an agreement with BT, TalkTalk (Carphone Warehouse - CPW) and Virgin Media to enable these companies to allow their customers to block irrelevant adverts and malicious websites. Phorm (based in Delaware) claims this is a world first.Comment: The Phorm offer comes in two parts. The Open Internet Exchange (OIX) is an online advertising platform. It allows advertisers, publishers etc. the capability to group users (customers - me and you at home and at work) based on our interest in a topic (e.g. flights to Paris). OIX then uses this information to send relevant advertising (airlines, hotels, events in Paris) to the user. Thus advertising is both targeted (the holy grail for advertisers) and relevant (ideal for consumers). This looks like a win-win-win to me (for advertisers, ISPs, and consumers).The second part of the Phorm offer is Webwise and relates more to security. Webwise warns users if the inadvertently browse inappropriate websites (e.g. children accessing adult content) and protects users from phishing (sites that try and extract sensitive information, such as bank details). Having been warned, the user then has the choice whether to proceed or not. Having yet more security seems no bad thing to me.What I like about the Phorm offer is that it is well thought through. The sites a customer accesses are not stored (so there are fewer security issues). Customers can switch OIX on or off if they prefer, and can act (or not) on Webwise warnings. This is as it should be, not dictated by the ISP or websites. To get BT, Virgin, and CPW to agree to take both OIX and Webwise is obviously a coup for Phorm. I imagine persuading all three to willingly appear in the same press release is a UK first given they aren't renowned for their willingness to co-operate. Together the three have over 67% market share, and so most Internet users in the country can benefit. So this is also a coup for the UK ISP industry too.
