The launch of Phorm’s Open Internet Exchange (OIX) and the announcement that the company has signed BT, Carphone’s Warehouse’s Talk Talk and Virgin Media heralds a new era for ISP’s as they finally receive the chance to benefit from emerging Web 2.0 revenues.
Michael Downs, service provider specialist at Telindus, network solutions and services provider, sees a bright future for all those involved:
“The launch of Phorm’s Open Internet Exchange (OIX), offering targeted online advertising, is good news for ISPs as it offers them a new, invaluable revenue stream. For the last few years, ISPs have been squashed between consumer demand for Web 2.0 content and the bandwidth this sucks from broadband capacity. Web 2.0 providers have long benefited from advertising revenues and now it’s the turn of the ISPs.
“Phorm’s launch isn’t a single edge sword – consumers also benefit. The era of web 2.0 is all about the benefits of new types of content and ultimately, targeted advertising based on browsing and search patterns, is the only type of advertising that consumers will stomach these days. After all, there’s nothing more annoying when you’re surfing the Web than a completely irrelevant pop-up blocking your screen.
“One thing ISP’s need to bear in mind is how the adverts are going to be delivered as there’s a danger that, unless they’re delivered in the right way, they’ll still be mistaken as irrelevant information. Unless ISPs get this new revenue stream right, there is a potential to damage brands, as irrelevant advertising can only have an adverse effect on brand value.”