Phorm: we don't need to pay users

 

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By Barry Collins

Posted on 7 Jan 2009 at 15:31

Controversy-strewn advertising firm Phorm says it won't need to offer broadband customers incentives to opt-in to its scheme.

Reports claim that Phorm is considering financial incentives in a bid to tempt customers to sign-up for the behavioural-advertising service, which serves ads based on a user's surfing habits.

The Information Commissioner advised Phorm that its Webwise service should be opt-in, after the furore created by the firm's secret trials with BT in 2006 and 2007.

Phorm has now completed a public trial with BT, which expects to roll out the service to its customers in the coming months, and also has agreements in place with Carphone Warehouse and Virgin Media.

However, in a statement sent to PC Pro, Phorm says it has no need to offer customers perks, such as money off their broadband bills. "It's speculation. We have never announced an incentive scheme," the company claims.

"Each of our ISP partners will decide how to present Webwise to their customers giving users a clear choice over their participation.

"Furthermore, consumer research demonstrates a strong demand from internet users for our current offer which improves their browsing experience by reducing the amount of irrelevant advertising they see and helping protect them from phishing online fraud."

However, the CEO of the Internet Advertising Bureau told New Media Age that Phorm might need to offer customers something extra. "It wipes away the barrier of people asking what's in it for them," Guy Phillipson told the magazine. "It'd be very easy to test and quite easy to research."