At BT’s AGM last week, the telecoms giant confirmed that it would be pushing on with its trials of Phorm.

Some 10,000 BT internet customers will use the controversial ad serving technology on an opt-in basis. Phorm tracks users’ web browsing activity and uses this information to serve up what is supposed to be more relevant advertising.

Two other internet service providers, Virgin Media and Carphone Warehouse’s TalkTalk, have also signed up to use Phorm, but are yet to announce trials.

The development and use of this technology is important to retailers. Not only do they themselves advertise online, but more importantly it raises the question of whether technology or consumers themselves are best equipped to make decisions on what is relevant for them to see on the web.

Lots has been written about Phorm, mostly in relation to BT’s previous trials of the technology and whether they should have taken place without consumers being informed.

However, surely the bigger question is whether consumers want to be targeted in this way and whether it will be able to deliver advertising that is truly relevant.

BT says that the Webwise service, which uses Phorm, will make decisions on ads based on what individual customers have searched for and sites they have visited. So, for instance, if BT Webwise detects you’ve visited travel web sites or used terms relating to travel in a search engine, you may be shown travel ads while surfing.

While there is nothing wrong with trying to match advertisers and consumers better, surely a better method would be to let consumers set their own preferences.

This is what the more innovative retailers are doing to make their sites more relevant to individual customers. If you look at other online developments – such as redesign of Facebook that has been launched this week – the drive has been to place power in the hands of the user.

Consumers appear to be wary of this kind of targeting too. New Media Age published research last week stating that 65 per cent of those queried would leave their internet service provider if it introduced behavioural targeting.

Ultimately it will be the consumer that decides.

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