nugg.ad is one of Europe’s leading BT specialists, offering its predictive behavioural targeting platform to agencies and advertisers in multiple European markets. The company has been a strong player in the BT sector for a number of years. With the EU "cookie" directive hanging ominously over the online advertising industry, it is interesting to see how a company so utterly dependent on the existence of the cookie industry is engaging with legislators and privacy advocates. ExchangeWire caught up with Stephan Noller, Nugg.ad CEO & Founder, to discuss its BT platform in more detail, the growing issue of user privacy and the plans for growth in 2010.

Can you provide an overview of how the nugg.ad targeting platform works?

SN: The nugg.ad Predictive Behavioral Targeting solution combines data from surfing behaviour, data sources like user-surveys (socio-demographic and product-interest data), the nielsen homecan panel (consumer data), and data from brand websites (information about brand affinity, etc). By processing this data combination with the nugg.ad algorithm, we make it possible to deliver real-time predicted values on socio-demographics as well as gender and product interests structured in different target groups. Advertisers can book these target groups for their online campaigns.

How does your audience segmentation technology benefit publishers?

SN: nugg.ad makes it possible for publishers and their advertising clients to find target groups even for products, which do not have specific channels on the internet (e.g. FMCG products). By addressing the right target group for the right campaign, advertisers can reduce media loss of their online-campaigns. This increases campaign efficiency and lowers the target-group CPM.

You also provide a service for ad networks? Can you explain this offering in more detail?

SN: Basically, the offering for ad networks is the same as the one for publishers. We provide them with our targeting solution so they can use it for their customers’ online campaigns.

Data protection has become a defining issue for the online display advertising, and governments are trying to legislate accordingly. How does nugg.ad protect user data?

SN: Since day one, privacy and data protection has played an essential part of the nugg.ad offering. We have been the first targeting company to be certified – since 2007 - with the German ULD Privacy Seal. In the meantime we have been recertified with the ULD and subsequently received the EuoPriSe, European seal of privacy. We have always put a lot of effort in anonymizing our users’ data and only use certain variables the advertising market needs in order to cluster users in different groups like travel.

Can the industry do more to address Government concerns about behavioural targeting?

SN: Of course, The Online Advertising Industry can do more to assure governments and users of its commitment to privacy. This can happen though self-regulation, transparency, and by delivering a message of trust. I myself take this issue very seriously. As chairman of the policy committee at the IAB Europe, I help to liaise between the industry and European policy legislators.

How does your technology differ from the likes of Wunderloop and Audience Science?

SN: nugg.ad has a strong background in market research and has a clear focus on innovation. Our platform is more like a real-time market research engine that helps websites offer advertisers relevant data and methods to reach their audience. With our newest innovation we are able to not only measure the behaviour of people, but also take into account their engagement with the ad. This is not only important for branding campaigns, but also for a lot of other online advertising budget.

nugg.ad operates in a number of European markets. Is there a big difference in how different online display markets operate?

SN: There are key differences in both structure and competition in European markets, but we think it is more important to focus on the similarities. We clearly see common trends for 2010. One of them is that online-advertising seems to moving away from traditional channels towards audience oriented advertising. The market seems to splitting in two directions: one is premium branding campaigns; the other long-tail performance campaigns. nugg.ad is looking to deliver superior campaign performance in premium branding campaigns.

How many European markets does nugg.ad currently operate in?

SN: nugg.ad operates in 12 different European countries such as the UK, France, and Germany. As a targeting-platform we are the market leaders in Germany, Scandinavia, and Central Eastern Europe.

What can we expect to see from nugg.ad in 2010? More features? Expansion into more European markets?

SN: 2010 will see a lot of progression and innovation at nugg.ad. We will look to offer more cross publisher campaigns and make additional GRP-bookings available for online advertisers. nugg.ad will also provide new opportunities for brand campaigns, enriching target group profiles through external data providers like Nielsen research data. And finally nugg.ad will look to strengthen its market position in Europe and offer our product to advertisers and agencies in the UK.