Virgin Media Gets Cold Feet over Phorm

UPDATE: British ISP Virgin Media is the latest firm to signal hesitation over enabling behavioral ad targeting.

clickz_ukandeu.gifBritish ISP Virgin Media is making slow progress with its proposed deployment of behavioral ad targeting technology from London-based Phorm. There’s a chance it may not make use of the technology in its networks at all.

Despite announcing a partnership with the Phorm in March last year, Virgin Media CEO Neil Berkett told investors at a meeting in New York on Monday the company was unlikely to roll out ad technology from firms such as Phorm any time soon.

In reference to Berkett’s comments, a Virgin Media spokesperson told ClickZ News, “Whilst we are still investigating the use of Phorm’s technology under our existing agreement with the company, due to the complexities of the proposition we do not have any timescales on when, or if, we will progress to trial or full launch.”

In its September investor update, however, Phorm said both Virgin and Talk Talk were due to “commence consumer trials in due course.” British Telecom is currently conducting trials of the platform with some of its customers, and expects to roll it out across their entire network, according to Phorm.

Despite Phorm being given the seal of approval from U.K. authorities in September, other ISPs have shied away from enabling behavioral ad targeting. ISP and mobile operator Orange, for instance, ruled out a relationship with Phorm last month, citing concerns about consumer privacy. The firm did not discount the use of behavioral targeting technology entirely, however, stating, “We are open to finding new ways of using data that will provide value to our customers and to advertisers alike.”

Phorm rival, U.S.-based NebuAd, recently backed away from its ISP-level targeting business model, following scrutiny from regulators and privacy advocates in the U.S. Now, the company is on the receiving end of a class action lawsuit regarding ISP trials of its technology conducted last year.

Both Phorm and NebuAd are currently in discussions with the IAB U.K., alongside other behavioral targeting firms, with a view to establishing guidelines and best practices surrounding the sector. Nick Stringer, IAB U.K.’s head of regulatory affairs, told ClickZ News recently he hoped these would be finalized by the end of the year.

UPDATE: This story originally stated that Virgin Media CEO Neil Berkett told investors his company was “unlikely to role out technology from companies such as Phorm.” According to Virgin Media, Berkett’s comments did not imply any finite decisions regarding the technology, but merely that progress with the platform has been slow. Virgin Media’s position on Phorm remains unchanged, and it does not have any timescales on when, or if, it will progress to trial or full launch of the system.

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