Phorm rival awaits privacy outcome

 

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By Matthew Sparkes

Posted on 10 Apr 2008 at 11:00

Around 10% of US internet users will soon be tracked by an advertising system very similar to Phorm's, according to reports.

NebuAd runs an advertising service which monitors internet users' browsing habits and creates profiles used to serve targeted advertising, much like the controversial UK-based Phorm.

However, while Phorm is still in the experimental stage, NebuAd will soon have contracts in place to monitor 10% of American internet browsers, claims the company's founder, Robert Dykes, speaking to the New York Times.

Unlike Phorm, which uses cookies to track users, NebuAd uses IP addresses run through a hash to create a profile for each user. The company has a technique to identify when a user's IP address and profile has changed, but will not disclose any information on how it achieves this.

A UK NebuAd office opened this year and the firm is currently in talks with a number of ISPs, claims Tony Evans, the UK commercial director. Evans claims the company is waiting to fully understand the privacy implications Phorm is encountering before making a move into the market.

"We're not in any kind of rush here, we want to make sure we have full understanding of the legislation. Fundamentally privacy issues are paramount, so unless we've got those buttoned up we won't be able to do anything," says Evans, explaining how the NebuAd service differs from Phorm technically.

"Fundamentally we do the same thing. We profile internet users anonymously. That is the process, how we go about that and how we approach this whole market is fundamentally different."

Phorm was warned this week by the Information Commissioner's Office that it would need to make its service opt-in in order to be legal in the UK. The company is conducting trials soon with several UK ISPs.