Skip to main content

Advertisement Scheduling-Revenue Management with TV Break Preference-Based Cancellations

  • Conference paper
  • First Online:

Part of the book series: Operations Research Proceedings ((ORP))

Abstract

In broadcasting advertisements, commercial breaks are offered to heterogeneous clients with uncertain demand. Interested in the efficient utilization of its limited airtime inventory, the TV station has to decide simultaneously which requests to accept or to deny and when ad spots should be scheduled. In addition, there may be clients that have preferences for specific ad slots with cancellation rates depending on provider’s slot assignments. Provoking the abortion of reservations or even relationships with the provider in traditional optimization, we provide a mathematical model considering both combinatorial aspects of the problem and said customer preferences. Furthermore, a simulation is performed in order to test the efficiency of the proposed approach.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  1. Benoist, T., Gardi, F., Jeanjean, A.: Lessons learned from 15 years of operations research for French TV channel TF1 (to appear in Interfaces).

    Google Scholar 

  2. Bollapragada, S., Cheng, H., Phillips, M., Garbiras, M., Scholes, M., Gibbs, T., Humphreville, M.: NBC’s optimization systems increase revenues and productivity. Interfaces 32(1), 47–60 (2002)

    Article  Google Scholar 

  3. Kimms, A., Müller-Bungart, M.: Revenue Management unter Berücksichtigung des Kundenwahlverhaltens [Revenue management with consideration of customer choice behavior]. Wirtschaftswissenschaftliches Studium 35(8), 434–439 (2006).

    Google Scholar 

  4. Kimms, A., Müller-Bungart, M.: Revenue management for broadcasting commercials: The channel’s problem of selecting and scheduling the advertisements to be aired. Int. J. Revenue Manage. 1(1), 28–44 (2007)

    Article  Google Scholar 

  5. Lindenmeier, J., Tscheulin, D.K.: The effects of inventory control and denied boarding on customer satisfaction. Tourism Manage. 29(1), 32–43 (2008)

    Article  Google Scholar 

  6. Martin, B.: Combinatorial aspects of yield management, a reinforcement learning approach. In: Proceedings of European Simulation and Modelling Conference ESM04 (2004)

    Google Scholar 

  7. Morales, D.R., Wang, J.: Forecasting cancellation rates for services booking revenue management using data mining. Eur. J. Oper. Res. 202(2), 554–562 (2010)

    Article  Google Scholar 

  8. Müller-Bungart, M.: Revenue Management with Flexible Products. Models and Methods for the Broadcasting Industry. Springer, Berlin (2007)

    Google Scholar 

  9. Ng, I.: The Pricing and Revenue Management of Services. A Strategic Approach. Routledge, London (2008)

    Google Scholar 

  10. SevenOne Media: Price index for advertising spots. http://www.sevenonemedia.de/preissystematik Cited 12 June 2012

  11. Shen, Z.-J.M., Su, X.: Customer behavior modeling in revenue management and auctions: A review and new research opportunities. Prod. Oper. Manage. 16(6), 713–728 (2007)

    Google Scholar 

  12. Talluri, K.T., van Ryzin, G.J.: The Theory and Practice of Revenue Management. Kluwer, Boston (2004)

    Google Scholar 

  13. Wirtz, J., Kimes, S.E., Theng, J.H.P., Patterson, P.: Revenue management: Resolving potential customer conflicts. J. Revenue Pricing Manage. 2(3), 216–226 (2003)

    Article  Google Scholar 

  14. ZAW (German Association of the Advertising Industry in Germany): Net revenues of advertising mediums in Germany. http://www.zaw.de/index.php?menuid=33 Cited 12 June 2012

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Michael Mohaupt .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer International Publishing Switzerland

About this paper

Cite this paper

Mohaupt, M., Hilbert, A. (2014). Advertisement Scheduling-Revenue Management with TV Break Preference-Based Cancellations. In: Helber, S., et al. Operations Research Proceedings 2012. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-00795-3_57

Download citation

Publish with us

Policies and ethics