Time-Out for ISP Ad Targeting

paidContent.org reported last night that Redwood, CA based NebuAd has called a ‘time-out’ on their ISP ad targeting plans thanks to Congressional scrutiny, the loss of potential clients and the sudden departure of its CEO. With Congress still trying to figure out what to do about privacy issues related to behavioral targeting, NebuAd has decided to hold off on the further roll-out of its system, which is designed to serve ads directly to ISP broadband subscribers.

NebuAd was summoned before Congress this summer following complaints from privacy advocates and consumers over ad targeting tests it ran with Charter Communications. The cable company quickly dropped plans to place behavioral ads on web pages that were accessed by its broadband service subscribers. After that, other clients began canceling their tests. So NebuAd, which raised roughly $30 million in little over a year, felt it had little choice than to put things on hold.

Looks like the time-out may be North American wide with Vancouver-founded ISP ad targeter Adzilla Inc. serving up this message on their homepage:

Excuse the construction…

We have stepped out for a little…
to develop new solutions and services to delight users and enhance the online ecosystem experience.

Please look out for our next evolution…

Last summer Adzilla announced that it has successfully completed a $10.25 Million Series A financing from two Silicon Valley venture capital firms, Norwest Venture Partners and Alloy Ventures. The proceeds from the financing were to be used to expand its subscriber network, continue its research and development to enhance current products, develop new product offerings, and establish a San Francisco Bay Area office. Looks like the focus will be developing new products.