Thursday, September 4, 2008

NebuAd Mothballs Its ISP Targeting Platform


Question: If you are in the woods, and you shutter a platform that no one uses, does it make a sound?

OK, maybe that was a cheap shot. But it should come as no surprise to the world that NebuAd has "suspended" the use of its platform, which has been attacked across the media and indeed in

the halls of Congress. Read more at MediaPost, courtesy of writer Wendy Davis.

NebuAd claimed that they were covering 10% of ISP users earlier this year. Now, that's Internet math, so if we lop off a zero that's 1%. The Congressional inquiry revealed that six major ISPs had tested NebuAd -- and none were using it today, so the suspension had likely been achieved by the market long before NebuAd announced it.

What next for NebuAd? We'll be finding out in the next few weeks I am sure. Too many people have too much money in this baby to let it die without a fight.
Also, we all need to realize that this does NOT mean the end of ISP-based targeting products. The issues that were raised about NebuAd related to:

1. Insufficient consumer notice. Or indeed in some cases it is debatable whether there was any notice at all.

2. Data collection methods. Allegations of procedures that amounted to forgery and wiretapping.

3. Lack of consumer value exchange. What were consumers getting in return for their "participation."

But ISPs still want more ways to make more money for subscribers.

What this category REALLY needs is some genuine innovation to drive opt-in at strong levels coupled with real consumer value exchange.

Thanks for reading, and don't forget to write.

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