DPI-Driven Internet Ads: Privacy vs. Profit?

At What Price Web Ads?

Though ISPs have claimed they need deep-packet inspection (DPI) technology primarily for network management purposes, the development of packages that use the granular information to help target advertising to users is buttressing privacy concerns. It’s also giving way to theories that the top priority of ISP efforts are motivated instead by finding a way to pay for capacity upgrades and monetize user data.

Upstart NebuAd Inc. likely will be the primary target in a Senate Committee meeting Wednesday in which it and the likes of Microsoft Corp., Google Inc. and Facebook Inc. will be drilled on several fronts with regard to Internet privacy.

NebuAd has taken fire for working with some ISPs for tracking online user behavior in order to provide web users targeted banner ads. But the upstart is far from alone in wanting to harness packet data for advertising purposes.

Allot Communications Inc. has created a package that uses behavioral information from DPI technology to accomplish much the same task. The company was prepared to announced the offering several weeks ago, but has “back-burnered” the launch fearing negative publicity and reception in an increasingly privacy-focused time.

And while online tracking is not completely new, using DPI technology and tools to facilitate it is the latest stage in an effort to boost Web ad revenue in a challenged economy, and in an industry looking to cover costs for network capital spending.

Privacy concerns are seen as slowing the evolution of Web advertising and targeted messages, which is fast gaining ground in the minds of those selling consumer products. These companies have been shifting sizable chunks of the ad budgets to online venues, but are concerned that they are reaching interested buyers. DPI-based ads promise to do a better job of addressing that concern.

Several service providers, especially cablecos, are trying to get a much better handle on Web usage, while finding ways to keep what they claim is a small minority of users devouring a huge amount of network bandwidth. Time Warner Cable announced an Internet bandwidth metering trial last month that, like similar efforts, could lead to new pay tiers for heavy Web use.

In the meantime, some operators, such as Comcast Corp. say they are teaming with sites and services to better understand how to best handle the traffic they generate. The cable company Wednesday announced such a pact with VoIP visionary Vonage Holdings. The two compete in Internet voice services.

Comcast says its seeks knowledge of VoIP traffic, though Time Warner Cable is focused exclusively on data packets in its trial. Both voice and video are especially delay-intolerant as Comcast learned in throttling streaming content from P2P sites.

Related Articles:

Vendors Aim to Help Carriers Monetize/Customize Broadband Experience

DPI -- No Longer a Dirty Word

Time Warner's Internet Bandwidth Meter Trial

Allot Kicks It Up a Notch with DPI

Continuous Computing Cuts It Both Ways with DPI

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