British ISPs align to build a targeted online ad platform

British Telecom, TalkTalk and Virgin Media, three of the largest Internet Service Providers (ISPs) in Britain, have joined together to create a new network that will offer targeted advertising to UK Internet users.

Using software built upon Phorm's ad serving technology, the three companies will become members of the Open Internet Exchange (OIX), designed to offer advertisements depending on the search and browsing habits of Internet users. Specifically, the service will provide information on users' browsing and search habits. Web sites will offer space to place the ads targeted toward those users, and advertisers will provide the revenue when an ad is clicked on.

To help protect user anonymity in the OIX, Phorm will anonymize the ISP information and remember just the subjects of users' searches, nothing else. ISPs will be encouraged to deploy a free software tool called Webwise to help users protect themselves from online fraud by informing them when they are viewing a suspected fraudulent Web site.

Phorm's other clients includes MySpace, iVillage and the Financial Times, while working with the Universal McCann and Manning Gottlieb Internet media agencies. The company is reportedly in negotiations with several other ISPs in the United Kingdom and other European nations.