NebuAd CEO resigns
NebuAd, one of two arch exponents of tracking user behaviour - via their ISP - to deliver more targeted adverts, has suffered a major blow with the departure of its CEO, Bob Dykes.
Using technology similar to Phorm, which is due to be trialled with BT “over the coming weeks”, NebuAd tracks user viewing habits so they can be served more relevant adverts. In America the technology has had small scale trials with minor ISPs where users were not given an explicit warning or opportunity to opt-out. This led to heightened opposition to the plans in America which culminated in Dykes being grilled by the House Subcommittee on Telecoms on Capitol Hill over the issue of whether opt-in would be a preferable business model. Phorm, following a ruling by the Data Commissioner in the UK this Spring, is now an opt-in service and hence customers have to give their explicit consent to have their web habits tracked.
NebuAd’s initial trials in America led to such opposition that they are now believed to have ended with ISPs withdrawing from any immediate roll out, prompting Dykes to seek a job with card payment terminals firm, VeriFone. Whilst he will continue as Chairman of NebuAd, co-founder Kira Makagon is taking over as CEO.
The surprise news that accompanied the departure was that NebuAd thanked Dykes for ‘accelerating’ its entry to market but that it was increasing efforts to be a multi-channel provider that did not focus solely on the internet.
A curious statement, which is all NebuAd will provide, states:
“With an initial go-to-market approach focused on the Internet service provider channel, our CEO Bob Dykes helped accelerate NebuAd into that market leveraging our multi-channel platform along with unique technology built specifically for the service provider channel.
“Servicing Internet service providers remains a priority of NebuAd, and we are enhancing our technologies in that area. In addition, however, NebuAd is also broadening its market via more conventional media channels and means. Accordingly, NebuAd’s current President, Kira Makagon who has been responsible for NebuAd’s advertising systems and media revenue, will assume the role of CEO to drive adoption of the platform across more traditional channels.”
Considering NebuAd would now appear to have no ISP partners to fully roll out its technology, and the technology was built around and for the web, the question will no doubt be asked as to how web tracking software will be of help offline?
NebuAd refused to elaborate when asked by SamKnows but is promising further announcements regarding its offline business model will be forthcoming.
Phorm has reacted to the news by claiming that it underlines its more cautious approach to entering the market will pay off in the long term.
“Phorm has mainly differentiated itself from NebuAd by taking time to talk to the ISPs and the many stakeholders in broadband,” a spokesman told SamKnows.
“We’ve taken our time to get the support of privacy advocates and, though it’s a longer route, we believe it’s the best way forward compared to the alternative of just trying to launch services without properly consulting with the people that will be affected.”
