Virgin Media, BT and TalkTalk owned by Carphone Warehouse, three of the UK’s largest ISPs (Internet Service Providers) have entered into an agreement for the use of a new advertising platform aimed at giving the company’s, a large share of the rapidly expanding, online targeted ad market.
The three companies have jointly agreed to sign a contract for the use of a system operated by Phorm which is designed to connect ISPs, websites and advertisers giving advertisers a far more targeted audience by using the clients, anonymous web browsing details.
Phorm’s strategy is that advertisers will pay more for advertising on websites that have signed up for the Open Internet Exchange (OIX) marketplace, because the advertising should be very relevant to the user as it is based on their previous search entries.
Phorms system will only record search items that the client actually looked at without recording any personal or search details. ZenithOptimedia published research last year, predicting that the Internet advertising spending would grow by nearly 70% by 2011.
It further predicts that Internet advertising will move up to 11.5% of all advertising spending, making it bigger than magazine advertising, making it the third largest, behind only TV and newspapers.
Phorm’s new system will also have a feature named ‘Webwise”, which clients can use for free to give them a higher level protection against online fraud.