A maximin procedure for the optimal insertion timing of ad executions

It has been recommended that dominant brands should not suffer from long periods with little or no advertising. For such brands in a product category which is not subject to seasonality, it is important not to let the minimum effectiveness level fall too low. Toward this end, we present an analytica...

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Bibliographic Details
Published in:European journal of operational research 1995-09, Vol.85 (2), p.368-382
Main Authors: (Sundar) Balakrishnan, P.V., Hall, Nicholas G.
Format: Article
Language:English
Subjects:
Advertising campaigns
Algorithm
Algorithms
Applied sciences
Brand names
Dominant brand
Exact sciences and technology
Management science
Mathematical models
Maximin strategies
Maximin strategy
Miscellaneous
Operational research and scientific management
Operational research. Management science
Optimal insertion timing
Studies
Timing
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Summary:It has been recommended that dominant brands should not suffer from long periods with little or no advertising. For such brands in a product category which is not subject to seasonality, it is important not to let the minimum effectiveness level fall too low. Toward this end, we present an analytical model for determining the optimal insertion timing pattern of a long run ad campaign which consists of a number of varying executions. We develop a computational procedure to calculate the time between the insertions within a pulse in order to maximize the minimum effectiveness level at any point in time. The focus of the procedure is to provide conceptual insights and on benchmark solutions, which can reduce the computational burden of simulations, rather than on providing an exact solution. We also provide a theoretical justification for the two common economic axioms of nonsatiation and diminishing marginal returns, in the context of an advertising model with exponential forgetting.
ISSN:0377-2217
1872-6860
DOI:10.1016/0377-2217(94)00043-C