Revenue maximization in reservation-based online advertising through dynamic inventory management

Ana Radovanovic, Assaf Zeevi

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

A widely used model in the online advertising industry is one where advertisers pre-purchase a reservation package of online inventory on content sites owned by publishers (e.g., CNN, amazon, etc.). Sales representatives, acting on behalf of publishers, sell inventory (impression) bundles of various types (text, video, multimedia, etc.) while trying to meet advertisers' expectations. The current process of sales is usually ad hoc and oftentimes a publisher uncontrollably runs out of a highly desirable inventory type, failing to meet the demand of his/her more valuable customers (advertisers). In this specific framework of display advertising, we propose a mathematical model for this problem and design a simple and easy to implement online impression allocation policy with provably revenue maximizing performance. Our results represent fundamental extensions to the existing theory of loss networks, given that this new application introduces novel mathematical assumptions and operational constraints.

Original languageEnglish
Title of host publication2010 48th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2010
Pages1502-1509
Number of pages8
DOIs
StatePublished - 2010
Externally publishedYes
Event48th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2010 - Monticello, IL, United States
Duration: 29 Sep 20101 Oct 2010

Publication series

Name2010 48th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2010

Conference

Conference48th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2010
Country/TerritoryUnited States
CityMonticello, IL
Period29/09/101/10/10

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