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-------------------------------------------------------------- This story was printed from ZDNet Australia. --------------------------------------------------------------
ISPs unsure about email advertising

By Rachel Lebihan, ZDNet Australia
July 10, 2001
URL: http://www.zdnet.com.au/news/soa/ISPs-unsure-about-email-advertising/0,139023165,120237700,00.htm


Internet Service Providers have responded with hesitance to a proposed new revenue stream - the derivative of intercepting subscriber emails with advertising, saying they want to put what the customer wants first.

ZDNet previously reported that Reva Networks had new email technology in the pipeline that enables ISPs to intercept emails and wrap them with ads, tailored to individual profiles, before sending them on to recipients.

Despite recognition by The Coalition Against Unsolicited Bulk Email that this concept isn't spamming -- as the mailbox at this point is the joint property of the ISP and the user, therefore the ISP isn't violating property rights by sending ads of this kind - the idea sparked a barrage of criticism in a ZDNet reader survey. Ninety-five percent of those polled said they wouldn't stick with an ISP who enclosed advertising in emails, while just five percent said that an ISP's service and pricing was paramount when choosing and remaining with a service provider.

Responding to these figures, most ISPs said they would be cautious about adopting the model.

-[Although] it's not quite being spammed...it's the thin end of the wedge," Access 1 operations director Mark Smeaton said.

-Customers simply don't like the idea of anyone intercepting their email or the intrusion of emails adorned with unwanted advertising," Smeaton added.

Reva Networks CEO Robert Pickup says the technology simply provides a means to generate additional revenue streams in a competitive environment that is already forcing ISPs to cut costs. ISPs could provide a discounted subscription plan in return for Admail, Pickup said in an earlier interview with ZDNet.

"Economically, it may well be something that needs to happen," Smeaton acknowledged, -and like other business we will consider every revenue raising opportunity". However, -I can't imagine why we'd want to do it...I can't imagine customers would be very happy."

Blue Sky Internet said it would take a -wait-and-see" approach to begin with but ultimately -we'd be driven by our customers," e-commerce spokesperson, Mark McCarthy, said.

"Customers are our number one priority," McCarthy said. -They're our main source of revenue and we wouldn't want to harm that revenue base."

"Some customers may want to receive [Admail]," McCarthy said, adding that Blue Sky Internet might look at introducing it as a -permission-based tool" further down the track.

From an advertising point of view, it would -would be a waste of time" unless the service provider got users to -opt in", Optus@Home director of sales and e-commerce Kylie O'Reilly, said. -Otherwise the advertising won't be effective."

-Optus@Home won't be going down that track," said O'Reilly, who coined the concept -intrusive" and -almost spamming".

In an earlier interview with ZDNet David Bather, Public Relations manager for Ozemail, also said it was important to give the user an opt-in function.

-Something like this would have to be scrutinised very carefully," he said.

Telstra said it is "evalutating a range of business models".

"No decision has been made on advertising formats with respect to email," spokesman Stuart Gray said.

Froggy Internet and Dingo Blue were also contacted for comment.

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