Paul Delaney

You'll need to register there to see it but:

http://www.advfn.com/cmn/fbb/thread....3044&from=1387

"Phorm JG - 18 Apr'08 - 14:30 - 1388 of 1551

Hi, JG from Phorm IR team here. Just following up from Lynne's post, we're here to clarify inaccuracies that are being posted and to give investors some context for the phorm story.

doowIE, you seem to have grasped the wrong end of the stick as regards Phorm's business model. Click through fees are not the issue; we support both CPC and CPM models and campaigns of both types compete with each other on the basis of their effective CPM (eCPM)

Publishers set the CPM for each ad slot for which they want to enable OIX relevant ads. When the OIX matches a unique user with one or more relevant campaigns, the most valuable ad above the Publisher’s price serves. Phorm and the ISP share the added value that comes with serving a more highly targeted ad – and where there there is a very high differential between the advertiser’s value for that user and the Publisher’s price, Phorm can share in a much higher rate than you list in your example.

For example, if the advertiser sets a £10 CPM to reach an in-market car buyer, and the ad is shown on a long-tail Publisher with a £1 price, the differential is £9, which Phorm splits with the ISP. Conversely, if the Publisher rate is £0.50 and the most valuable campaign is £1.50, Phorm splits the £1 with the ISP.

Fortunately, with Phorm’s perspective on the browsing data, each unique user can potentially have scores of ad campaign opportunities to ensure that an ad will serve in the most ad slots and to the advantage of everyone in the advertising ecosystem.

Take a look at www.phorm.com and the 'Introducing the OIX' flash presentation which shows you revenue flows between the players:

http://www.phorm.com"



AND



Phorm - 18 Apr'08 - 12:09 - 1362 of 1396


Hello, This is Lynne Millar, CFO of Phorm. For some time now, there has been
a great deal of misinformation about the system which we are rolling out
with the UK’s three largest ISPs and what it actually does. That's not
surprising, because it is a complicated system. In an effort to engage with
those who have privacy concerns in particular, we have taken a number of
steps to correct any misinformation and better explain how the system works.
However, we have not to date engaged with the investment community on
bulletin boards such as this one. We will now begin to do so in the interest
of presenting a fair and accurate picture of where we stand. We will not be
introducing new information, simply correcting misperceptions by calling
attention to easily verifiable facts already in the public domain.

Here are the three main areas of misunderstanding:

1) Our three ISP partners have strongly reassured us that they are in
no way reconsidering their decision to deploy or are in any way reducing
their level of commitment to the project

2) All advertisers, agencies and UK publishers that we have a dialogue
with retain a strong interest in our project and eagerly await launch

3) We have taken substantial legal advice and are confident that we
satisfy all legal requirements that could threaten any aspect of our
business model, whether relating to the way the technology works or the way
in which it is deployed.

I will periodically be addressing questions as time permits but
members of our team will be stepping in as necessary to correct glaring
errors of fact.

We are more excited than ever about our project. We are convinced that
over the coming weeks and months, its full significance to the online
advertising industry will be understood in the wider market and the press
and our need for outreach in forums such as this will diminish.


Regards,

Lynne Millar, CFO







.