Phorm admits delays in trials of controversial ad technology

According to the Financial Times, major trials of Phorm’s Internet advertising technology have taken longer than expected.

Trials were due to begin earlier this year according to Phorm.  Around the same time the company announced agreements with BT, Virgin Media and Talk Talk.

Phorm’s advertising technology shows relevant ads on certain websites for users according to their web browsing habits, and what they search for online.  The introduction of the technology however has been met with controversy.  Many consumers are concerned about privacy, and what looked like an opt-out policy for ISP’s customers, rather than opt-in.

The Foundation for Information Policy Research (FIPR) also advised the government that the use of consumer information through this technology is illegal.

Talk of secret trials with BT in 2006, plus Phorm’s past as a spyware company also fuelled further debate.

Phorm however refuted the concerns, claiming that the anonymity of users will be preserved, and that it complies with the Data Protection Act, RIPA and other applicable UK laws.  BT has also stated that it will ask for volunteers for its first trial.

Kent Ertugrul, Phorm chief executive explained the delays to the FT: “With the touchpoints and visibility we have, we can’t afford to deploy the technology badly.”

“What will be apparent after launch is what a large, complex project this is and how much preparation is required in order to execute flawlessly,” he added.