System will target advertising based on users' browsing habits

Three of the UK's largest internet service providers (ISPs) are signing up to use a new advertising platform in a bid to capture more of the online advertising market.

BT, Virgin Media and Carphone Warehouse's TalkTalk will all use a system called the Open Internet Exchange (OIX) from advertising firm Phorm which will link advertisers, web sites and ISPs.

The system will target advertising based on users' browsing trends, and will charge advertisers more to display ads relevant to previous searching habits – though the personal details will remain anonymous.

FT.com and iVillage are already on board.

Internet advertising will grow 69 per cent over the next three years and increase its share of the overall ad market from 5.8 per cent to 8.7 per cent, according to a study by ZenithOptimedia last year.