Monday, 22 June 2009
Misunderstood NebuAd Forced to Close down
This week American online advertising company NebuAd closed its doors for good and with it disappeared a much needed new revenue stream for ISPs.The company ran out of money, and seemed to be struggling after the US Congress held hearings last year to examine its Internet practice which was deemed to be an invasion of privacy. Congress subsequently dropped the investigation, of course. But whilst NebuAd's customers took the very proper position not to use the service whilst the investigation was going on, the systems didn't seem to go back on, NebuAd seems to have lost cash and closed shop.NebuAd gathered information at an ISP level to serve customers with relevant ads.Unfortunately, the upshot seems to be that ISPs have lost out on a great opportuinity. The ad revenue, which would have been shared with ISPs, could have been invested in improving existing technology, cutting overall costs or even used to reduce the price of services for existing and potential customers.NebuAd explicitly stated in their privacy policy that they would "specifically not store or use any information relating to confidential medical information, racial or ethnic origins, religious beliefs, or sexuality which are tied to personally identifiable information ('sensitive personal information')."However, if NebuAd actually used technology that made the customer anonymous, hasn't the public lost something that would have protected their privacy as well? And how many people are opting into services - either inadvertently or lazily - and are giving their consent for companies to totally profile them without any attempt at anonymity. It'll be a very sad occurrence if the end of this company means the end of any attempt at anonymity by companies offering advertising on the Internet, with the excuse that, "Well, you opted in, so we can glean whatever information we like about you."
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