IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v53y2015icp90-96.html
   My bibliography  Save this article

Chance constrained optimization for targeted Internet advertising

Author

Listed:
  • Deza, Antoine
  • Huang, Kai
  • Metel, Michael R.

Abstract

We introduce a chance constrained optimization model for the fulfillment of guaranteed display Internet advertising campaigns. The proposed formulation for the allocation of display inventory takes into account the uncertainty of the supply of Internet viewers. We discuss and present theoretical and computational features of the model via Monte Carlo sampling and convex approximations. Theoretical upper and lower bounds are presented along with a numerical substantiation.

Suggested Citation

  • Deza, Antoine & Huang, Kai & Metel, Michael R., 2015. "Chance constrained optimization for targeted Internet advertising," Omega, Elsevier, vol. 53(C), pages 90-96.
    • Handle: RePEc:eee:jomega:v:53:y:2015:i:c:p:90-96
    DOI: 10.1016/j.omega.2014.12.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030504831500002X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2014.12.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, S. & Huang, G.H., 2014. "An integrated approach for water resources decision making under interactive and compound uncertainties," Omega, Elsevier, vol. 44(C), pages 32-40.
    2. Deane, Jason & Agarwal, Anurag, 2012. "Scheduling online advertisements to maximize revenue under variable display frequency," Omega, Elsevier, vol. 40(5), pages 562-570.
    3. Li, S. X., 1995. "An insurance and investment portfolio model using chance constrained programming," Omega, Elsevier, vol. 23(5), pages 577-585, October.
    4. Santanu S. Dey & Quentin Louveaux, 2011. "Split Rank of Triangle and Quadrilateral Inequalities," Mathematics of Operations Research, INFORMS, vol. 36(3), pages 432-461, August.
    5. John Turner, 2012. "The Planning of Guaranteed Targeted Display Advertising," Operations Research, INFORMS, vol. 60(1), pages 18-33, February.
    6. B. K. Pagnoncelli & S. Ahmed & A. Shapiro, 2009. "Sample Average Approximation Method for Chance Constrained Programming: Theory and Applications," Journal of Optimization Theory and Applications, Springer, vol. 142(2), pages 399-416, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Beltran-Royo, C. & Escudero, L.F. & Zhang, H., 2016. "Multiperiod Multiproduct Advertising Budgeting: Stochastic Optimization Modeling," Omega, Elsevier, vol. 59(PA), pages 26-39.
    2. Shen, Yuelin, 2018. "Pricing contracts and planning stochastic resources in brand display advertising," Omega, Elsevier, vol. 81(C), pages 183-194.
    3. Tunuguntla, Vaishnavi & Basu, Preetam & Rakshit, Krishanu & Ghosh, Debabrata, 2019. "Sponsored search advertising and dynamic pricing for perishable products under inventory-linked customer willingness to pay," European Journal of Operational Research, Elsevier, vol. 276(1), pages 119-132.
    4. Ballings, Michel & Van den Poel, Dirk & Bogaert, Matthias, 2016. "Social media optimization: Identifying an optimal strategy for increasing network size on Facebook," Omega, Elsevier, vol. 59(PA), pages 15-25.
    5. Shinjini Pandey & Goutam Dutta & Harit Joshi, 2017. "Survey on Revenue Management in Media and Broadcasting," Interfaces, INFORMS, vol. 47(3), pages 195-213, June.
    6. Zhang, Jianqiang & He, Xiuli, 2019. "Targeted advertising by asymmetric firms," Omega, Elsevier, vol. 89(C), pages 136-150.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Jianqiang & He, Xiuli, 2019. "Targeted advertising by asymmetric firms," Omega, Elsevier, vol. 89(C), pages 136-150.
    2. Lamas, Patricio & Goycoolea, Marcos & Pagnoncelli, Bernardo & Newman, Alexandra, 2024. "A target-time-windows technique for project scheduling under uncertainty," European Journal of Operational Research, Elsevier, vol. 314(2), pages 792-806.
    3. Amitabh Basu & Gérard Cornuéjols & François Margot, 2012. "Intersection Cuts with Infinite Split Rank," Mathematics of Operations Research, INFORMS, vol. 37(1), pages 21-40, February.
    4. Mahdi Zarghami & Nasim Safari & Ferenc Szidarovszky & Shafiqul Islam, 2015. "Nonlinear Interval Parameter Programming Combined with Cooperative Games: a Tool for Addressing Uncertainty in Water Allocation Using Water Diplomacy Framework," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(12), pages 4285-4303, September.
    5. Emelogu, Adindu & Chowdhury, Sudipta & Marufuzzaman, Mohammad & Bian, Linkan & Eksioglu, Burak, 2016. "An enhanced sample average approximation method for stochastic optimization," International Journal of Production Economics, Elsevier, vol. 182(C), pages 230-252.
    6. G. Pantuso & L. M. Hvattum, 2021. "Maximizing performance with an eye on the finances: a chance-constrained model for football transfer market decisions," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 29(2), pages 583-611, July.
    7. Hong, Sung-Pil & Kim, Taegyoon & Lee, Subin, 2019. "A precision pump schedule optimization for the water supply networks with small buffers," Omega, Elsevier, vol. 82(C), pages 24-37.
    8. Vahideh Sadat Abedi, 2017. "Allocation of advertising budget between multiple channels to support sales in multiple markets," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(2), pages 134-146, February.
    9. Abedi, Vahideh Sadat, 2019. "Compartmental diffusion modeling: Describing customer heterogeneity & communication network to support decisions for new product introductions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 536(C).
    10. Hadi Karimi & Sandra D. Ekşioğlu & Michael Carbajales-Dale, 2021. "A biobjective chance constrained optimization model to evaluate the economic and environmental impacts of biopower supply chains," Annals of Operations Research, Springer, vol. 296(1), pages 95-130, January.
    11. Jiang, Jie & Peng, Shen, 2024. "Mathematical programs with distributionally robust chance constraints: Statistical robustness, discretization and reformulation," European Journal of Operational Research, Elsevier, vol. 313(2), pages 616-627.
    12. Chen, Zhen & Archibald, Thomas W., 2024. "Maximizing the survival probability in a cash flow inventory problem with a joint service level constraint," International Journal of Production Economics, Elsevier, vol. 270(C).
    13. Hu, Shaolong & Dong, Zhijie Sasha & Dai, Rui, 2024. "A machine learning based sample average approximation for supplier selection with option contract in humanitarian relief," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    14. Li, Susan X., 1998. "Stochastic models and variable returns to scales in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 104(3), pages 532-548, February.
    15. Ming Liu & Yueyu Ding & Lihua Sun & Runchun Zhang & Yue Dong & Zihan Zhao & Yiting Wang & Chaoran Liu, 2023. "Green Airline-Fleet Assignment with Uncertain Passenger Demand and Fuel Price," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    16. Yi Zhao & Qingwan Xue & Xi Zhang, 2018. "Stochastic Empty Container Repositioning Problem with CO 2 Emission Considerations for an Intermodal Transportation System," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    17. Miguel A. Lejeune & John Turner, 2019. "Planning Online Advertising Using Gini Indices," Operations Research, INFORMS, vol. 67(5), pages 1222-1245, September.
    18. Ali Hojjat & John Turner & Suleyman Cetintas & Jian Yang, 2017. "A Unified Framework for the Scheduling of Guaranteed Targeted Display Advertising Under Reach and Frequency Requirements," Operations Research, INFORMS, vol. 65(2), pages 289-313, April.
    19. Alexandre Street, 2010. "On the Conditional Value-at-Risk probability-dependent utility function," Theory and Decision, Springer, vol. 68(1), pages 49-68, February.
    20. Carrillo-Galvez, Adrian & Flores-Bazán, Fabián & Parra, Enrique López, 2022. "Effect of models uncertainties on the emission constrained economic dispatch. A prediction interval-based approach," Applied Energy, Elsevier, vol. 317(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:53:y:2015:i:c:p:90-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.