Overview
Wikipedia entry on Phorm
"Phorm, formerly known as 121Media, is a digital technology company based in London,
New York, and Moscow. The company drew attention when it announced it was in talks
with several United Kingdom ISPs to deliver targeted advertising based on
user browsing habits by using deep packet inspection.
It is one of several companies developing Behavioral Targeting advertising systems,
seeking deals with ISPs to enable them to analyse customers' websurfing habits
in order to deliver targeted advertising to them. Others include NebuAd and Front Porch."
Phorm's Website
"Phorm, Inc. (formerly 121Media) revolutionises online advertising and privacy,
protecting you from fraud while serving advertising and content tailored to you."
Quotes
Phorm's chief executive Kent Ertugrul, Financial Times, 14th February 2008
"This service will dramatically improve the effectiveness of advertising for
online publishers and advertisers. In a world where all websites rely on advertising
for their existence this offers the promise of better content for consumers."
Phorm's chief operating officer Virasb Vahidi, New York Times, 20th March 2008
"As you browse, we're able to categorize all of your Internet actions
... We actually can see the entire Internet."
Background to Phorm
Phorm admits that as 121media they were an adware company (BBC 7th March 2008).
The Register
describes 121media's PeopleOnPage as spyware rather than adware (25th February 2008).
"Phorm is run by Kent Ertegrul ...
Previously, his most notable foray online was as the founder of PeopleOnPage,
an ad network that operated earlier in the decade and which was blacklisted
as spyware by the likes of Symantec and F-Secure."
Kent Ertrugul's linkage with PeopleonPage is confirmed in Phorm's Announcement of admission to AIM.
F-Secure classifies PeopleOnPage and ContextPlus as Spyware (Last Modified: 1st January 2006).
Symantec classifies PeopleOnPage and Apropos as Spyware (From 6th March 2004 to Date).
Computer Associates classifies PeopleOnPage as a Hijacker (Published 16th August 2004):
"Changes browser settings other than homepage, without user permission.
Can't be uninstalled by Windows Add/Remove Programs
and no uninstaller is provided with application."
On 3rd November 2005, the Centre for Democracy and Technology complained to the Federal Trade Commission about ContextPlus.
On 10th May 2006, eWeek.com reported that ContextPlus had halted distribution of Apropos and PeopleOnPage.
Phorm Branding
Phorm shares its name and a similar logo with an unrelated company in Sheffield, Phorm Design, who have had a web presence since 13th May 2003.
BT's implementation of Phorm's technology is branded as Webwise. Webwise shares the name of a trusted BBC project to educate children about security and privacy.
Incentives to use Phorm
On 26th September 2008, The Register reported that Phorm were looking at possible incentives to use their scheme in a survey running on the market research site Toluna.com.
Board Changes at Phorm
On 1st December 2008, The Stock Exchange announced that four US-based members of Phorm's board had stepped down as a result of differences with Kent Ertugrul as to the management and future direction of the Company. These were:
- Non-executive Chairman Steven Heyer.
- Chief Operating Officer Virasb Vahidi.
- David Dorman, a telecoms executive.
- Christopher Lawrence, an investment banker.
The following day, The Guardian reported on the background to the board changes.
The departing directors were replaced by four UK-based directors:
- Norman Lamont, a former UK Chancellor of the Exchequer.
- Kip Meek, a former board member of OFCOM. Meek was interviewed by The Guardian on 31st March 2008 and also acts as a UK Government advisor.
- Stefan Allesch-Taylor, a financial engineer.
- Stephen Partridge-Hicks, an innovator in financial instruments, and founding director of Gordian Knot, part of Sigma Finance. Gordian Knot invented the structured investment vehicle.
On 17th December 2008, The Guardian reported that UK Chief Executive Hugo Drayton was leaving Phorm's Board, and that UK Chief Financial Officer Lynne Millar had resigned. Paid Content reported that they would be replaced by:
- Former Turner executive Nan Richards as Deputy Chief Executive Officer based in London. Turner was already working at Phorm as Global Client Solutions Officer.
- Media industry consultant and Arthur Andersen-trained chartered accountant Andrew Croxson as interim Global Chief Financial Officer. Croxson joined from Ingenious Consulting whose managing director is Kip Meek, one of the 1st December board intake.
In addition, Nick Barnett, currently Phorm's UK Commercial Director, was promoted to the newly created role of UK Managing Director based in London.
Paid Content also highlighted that Phorm's General Counsel, David Pester had been replaced by Sharon O'Leary.
On 18th December 2008,
The Times summarised Phorm's position and concluded that:
"It is far from clear that Phorm's concept will take off outside the UK,
or that there is enough interest in its targeted advertising to make serious money.
Phorm opens an office in Korea
On Monday 15th December 2008 The Guardian reported that Phorm had opened an office in Korea.