Being probably the most hated ad network in the space, NebuAd (coverage) is trying to show the public that it is a user centric company that cares about online privacy. They are now calling themselves “an online media company that provides state-of-the-art online privacy protection for consumers”. Yesterday they announced that they are introducing new industry-leading online privacy protections, offering alternatives for robust, direct consumer notification and unprecedented innovations in opt-out technology. Which they say will further empower Internet service provider (ISP) subscribers to control their web experience. In addition, it reinforces NebuAd’s commitment to delivering world-class innovation in Internet advertising by setting unparalleled standards in online consumer privacy protection. Is anyone really believing this? They had a great business concept in terms of finding “true” behavioral targeting, however very few consumers are willing to give up their online privacy in order to see banner ads that are more suited for them.

More information on their new online notice option and Opt-Out Technology

NebuAd has developed a means to offer consumers direct, initial online notification and periodic reminders – thereby equipping users with more opportunities to make informed decisions about their web experience. While current mail and email notification practices remain the most reliable and acceptable means of ensuring consumer awareness for many companies, the ability to offer online notice adds another method of direct communication that NebuAd’s partners may find appropriate in a variety of circumstances.

In addition to its new direct online notification system, NebuAd is also developing a network-based opt-out mechanism that is not reliant on web browser cookies. Leveraging this advanced technology, ISP partners can offer this to their subscribers in order to honor their opt-out choices in a more persistent manner than current systems widely used today.

“NebuAd is committed to driving innovation in online advertising while pioneering industry-leading privacy practices,” said Bob Dykes, CEO of NebuAd. “As such, we have taken significant measures to increase awareness and protection of Internet subscribers and offer our ISP partners a means of providing prominent, advance online notice and new technology advancements that provide greater persistency of consumers’ opt-out selections.”

Here is what NebuAd is saying about their Core Privacy Principles:

“From its inception, NebuAd has architected its advertising systems and worked with privacy experts to adhere to the core principles of consumer privacy, including: no collection or use of personally identifiable information (“PII”); robust state-of-the art security; and transparency to consumers about advertising services with informed consent mechanisms that allow for control over their online experience.”

NebuAd contractually requires that its ISP partners provide their subscribers with advance, direct notice with an opportunity to make an informed choice before its service takes effect, and on-going notice and choice mechanisms within an ISP’s privacy policy. With NebuAd systems architected and its operations based on principles essential to strong privacy protection, NebuAd meets both the letter and spirit of all relevant privacy requirements, including the Cable Communications Policy Act and Title III of the Electronic Communications Privacy Act (“the Wiretap Act”). However how many people read any of the fine print from their ISP? Maybe we should start doing that!

“Based on my experience in the field of privacy, it is my opinion that NebuAd has established industry-leading privacy controls and practices to protect consumer privacy and safeguard personal information,” said Dr. Larry Ponemon, Chairman of the Ponemon Institute. “Through its consistent consideration of privacy issues and design of privacy protections into their product from the earliest design stage, NebuAd ranks among the most privacy conscious vendors we have worked with in the online advertising industry.”

This announcement is certainly a response to the pressure they are getting from Washington, they are not going to find too many friends in Congress who are willing to vote that online privacy can be neglected when it means that CPM rates can go up.

NebuAd is currently giving some of the best CPM rates in the industry, even to low tier publisers. They are the only ad network on Yahoo’s RMX (Right Media Exchange) ad system supplying a minimum $1 CPM to websites. So advertisers are defintely buying into the idea of increased relevance, the question is, will NebuAd be around long enough to keep on taking their money?