Phorm, the controversial ad targeting company that uses ISP data for personalisation, is scaling back its operations in Turkey.
The Operational Update filed with London Stock Exchange shows that the company is undertaking a major cost reduction programme that will result in a prioritisation of those markets where commercial traction is being achieved. As a result of this, the company will be closing its offices and moving towards a remote cookie based platform in Turkey.
In 2012, Phorm raised $10.8 million capital by selling 5.6 million new shares to Mirabaud Securities and Liberium Capital in order to take advantage of Turkey’s rapidly growing advertising market. Following its commercial launch in July in partnership with TTNET, Turkey’s second largest ISP, the company announced that it reached nearly 4 million internet users in Turkey.
The company whose ad targeting technology led to outcry of internet users around the globe due to privacy concerns, was expecting the revenue from its operations in Turkey to be high enough to compensate its growing cash burn rate.