After my post of last week lambasting NebuAd for using information obtained from internet service providers in order to serve ads to web browsers based on users' browsing behavior, I was contacted by the CEO of NebuAd, Robert Dykes. He agreed to talk with me about his company and the internet advertising world.

I started by asking Dykes what steps NebuAD has taken to maintain the privacy of the customers of the ISPs with which they work. Dykes told me his company realized early on the security implications of its processes.

"In formulating the structure of how our equipment would work, (at this time) the government was subpoenaing AT&T and Verizon for their data... (and) AOL's search data had become public. We realized that...we had to be extremely careful in the way we structured our equipment and what we did on the internet... so that we would never be the subject of a subpoena from the government. So our structure is such that we never have any information that would be of use to the government. (There) never would be any information there of a personal nature.

"(We) built our system such that, as we map a user over and over again... that mapping is reflected only as a hash number, not as any personally identifiable information, not even an IP address... All we track is that somebody qualified for certain interest categories...(we) don't keep the raw data about what searches they did."

11-18 note: see my later post for more and updated information on this story.

A new ad delivery system unveiled this week by NebuAd will provide advertisers unprecedented details about your web access activities, allowing them to place their advertising more effectively.

Unlike conventional ad delivery companies that track your choices when you log onto a site that is part of its network, NebuAd takes the concept one frightening step further, tracking your browsing via your internet service provider (ISP).

The difference? Think of the typical ad delivery system as a lookout that spots you when you pull into the parking lot of the mall, who then alerts all the merchants that you've arrived, so they can put up the appropriate displays for your tastes.

In this analogy, NebuAd would be a guy staking out your house, ready to tail you, or your children, wherever you go, reporting your comings and goings to anyone willing to pay for the information.

The company claims that it aggregates and anonymizes the information such that it can't be misused, a claim that I view with great skepticism. As the FTC probes privacy issues and internet advertising, this company will probably serve as the stalking horse. If it's allowed to thrive, there will be little left to defend.