Phorm Repositions as Content Customizer to Woo Consumers

In an attempt to encourage users to opt in to its behavioral ad platform, U.K.-based Phorm has launched a consumer-facing content recommendation engine designed to provide users with personalized Web content. The company unveiled the product, dubbed Webwise Discover, at a press conference in London yesterday, although the firm hinted at the launch in April.

Despite opposition from privacy advocates and campaigners, regulators have concluded Phorm’s technology can be implemented legally in the U.K., providing users chose to opt-in to the system. Until now, however, the company has provided little incentive for consumers to actually do so, besides the promise of more relevant advertising.

The program will utilize the same tracking technology as Phorm’s ad targeting product, and will present users with content based on which sites they visit, and which search terms they use. This content can then be displayed on a personalized portal-like page, potentially hosted by Phorm’s ISP partners, or through a free widget embedded by publishers, with the purpose of driving further relevant traffic within their site.

Phorm’s U.K. ISP partners have yet to actually implement the technology in their networks, although British Telecom has now conducted three live consumer trials, and Korean ISP Korea Telecom is currently in the process of doing so. In reference to potential partners elsewhere, Phorm CEO Kent Ertugrul said, “We are engaged in discussions in pretty much every major market worldwide.” He added that to date, the company has generated no revenue through the sale of advertising.

Phorm touts its product as a win-win situation for all parties, suggesting advertisers benefit from increased ROI through better targeting capabilities, while publishers can charge more for their inventory as a result. In addition, ISP’s can take a cut of that revenue. Until now, however, there has been little incentive for the consumer to actually opt-in to the platform, and it is this issue Phorm is seeking to address with the introduction of Discovery.

At present Webwise Discover is intended solely to promote user opt-in to Phorm’s platform, subsequently broadening reach and volume for prospective advertisers. However, Mike Moore, the company’s Global Commercial Director, said there may be advertiser opportunities within the product itself at a later point. At present, he said, “Publishers that make use of the widget are free to monetize their page views through existing ad relationships, or through the OIX [Phorm’s advertiser product].”

However, David Burrows, the firm’s global director of ad-ops, said he expects “a lot” of publishers to take advantage of both the Discovery widget, and targeted advertising opportunities from Phorm.

With regards to advertiser interest, Nick Barnet, managing director, U.K., said conversations with agencies are ongoing, and are extremely positive. “Agencies are telling us they like the product, and [asking us] to let them know when it’s fully deployed,” he said.

U.S.-based behavioral targeting firm Claria was promoted a similar offering back in 2006, with the announcement of its PersonalWeb product. That platform aimed to provide a personalized homepage featuring content and advertising based on behavioral data. The firm, later known as Jellycloud, eventually shut down in October 2008, according to reports.