That is what this amounts to. I am leaving BT as soon as this goes live

ISP Targeting Ad Company Phorm Gets Targeted
March 23, 2008 – 1:37 pm

Phorm, which is an ISP targeted advertising company in the UK, is looking to expand into the US market. The New York Times last week ran an update on the company’s efforts in the US market stating “[Phorm] is trying to negotiate deals with telephone and cable companies, like AT&T, Verizon and Comcast, that provide broadband service to millions”.

In the UK, Phorm already has partnerships with three major Internet service providers covering some 70% of British households. In the US, the challenges will be far greater. Companies like AT&T and Comcast are not going to be so eager to open up their networks for several reasons. First the technology is in its infancy and is largely unproven. Secondly, it’s controversial and after Facebook’s disastrous efforts with Beacon, companies will think twice before targeting users’ personal, although arguably in Phorm’s case none identifiable information. Lastly, companies like AT&T and Verizon simply don’t need the revenue. The risks outweigh the potential (unproven) gains.

Regardless of the current US conditions related to ISP targeting there are organizations out there that have employed and are actively using this technology. Phorm argues that it has technology that protects web users privacy by associating a random number with a user’s Web surfing usage. This random number acts as the identifier through a cookie placed on a person’s computer and saves the users number to be placed into an advertising category to target ads towards. Advertising can then target ads based on the individual’s usage and Phorm categorization.

These are sold as “micro-targeted” or “ISP-Based Behavioral Targeting” with the promise of higher CPM’s for publishers and higher CTR’s for advertisers. These “highly relevant” ads have proved themselves ineffective. Advertisers can expect to pay anywhere from $4.00 – $12.00 for this “cutting edge” technology which delivers no greater CTR’s and only higher CPM’s.

The only success to date is the fact they have generated controversy but little if any actual, quantifiable results.

Http://www.marcporcelli.com

The company, called Phorm, has created a tool that can track every single online action of a given consumer, based on data from that person’s Internet service provider.”

moderation takes a LONG time here so take the short version.

http://www.cableforum.co.uk/board/12/33628733-virgin-media-phorm-webwi se-adverts-updated-page-76.html#post34505610

“Charles Arthur (Guardian)
I’m leaning towards the phrase “server-side adware” for what Phorm’s doing. Does anyone else have a better phrase?”

but the cable forum users have other thoughts

Sure,

illegal wiretapping
unlawful interception of communications

yet others favour
commercial piracy …. but then thats its more baseline dataset.