Charter Nixes Controversial Internet Ad Trial
Cabler Succumbs To Consumer, Regulatory Gripes
By Linda Haugsted -- Multichannel News, 6/24/2008 12:50:00 PM
Bowing to consumer and regulatory criticism, Charter Communications has spiked an unpopular targeted Internet advertising test planned this month for four markets around the country.
Critics included the Connecticut attorney general, Richard Blumenthal, who in a June 20 to Charter president and CEO Neil Smit, wrote that he "strongly urged suspension of implementation" of the ad test. Blumenthal (pictured) added he was troubled by the privacy and legal implications of the test, especially in light of federal restrictions on cable companies and the subscriber information they may share with outside companies.
Charter notified impacted customers in May it planned to test targeted Internet ads in four markets: San Luis Obispo, Calif.; Ft. Worth, Texas; Oxburg, Mass. and Newton, Conn. The test was to last 30 days, using technology developed by NebuAd, a Redwood City, Calif.-based Web advertising technology company. NebuAd combines its technology and ISP partnerships to anonymously observe consumer activity across the Internet to help advertisers target their pitches to individuals.
But various consumer Web sites were soon filled with criticisms from the moment the notifications were distributed. Consumers faulted the opt-in process, in which subscribers would have to accept a cookie on their system to block the spying. Internet users who diligently clean out those caches would have to remember to reload the cookie, critics noted. Blumenthal also stated the opt-out provided "inadequate protection" to consumers.
Announcing cancellation of the test, Charter issued the following statement: "Our customers are always our first priority. As we do with all new service launches or initiatives, we conducted focus groups well in advance, which told us that most broadband consumers would look upon this service favorably. However, some of our customers have presented questions about this service as well as suggested improvements."
“We will continue to take a thoughtful, deliberate approach with the goal to ultimately structure an advertising service that enhances the Internet experience for our customers and addresses questions and concerns they’ve raised," the statement concluded.
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