Media Mix Optimization - Applying a Quadratic Knapsack Model

Ulrich Pferschy, Joachim Schauer, Gerhild Maier

2014

Abstract

In this contribution we present an optimization model for deciding on the best selection of advertising media to be used in a promotional campaign. The effect of each single medium and each pair of media is estimated from the evaluation data of past campaigns taking into account a similarity measure between the attributes and goals of campaigns. The resulting discrete optimization model is a Quadratic Knapsack Problem which we solve by a genetic algorithm. Then campaign budget is assigned to each selected advertising medium based on a statistical estimation from previous campaigns. Our optimization tool is integrated in the marketing management software solution MARMIND.

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Paper Citation


in Harvard Style

Pferschy U., Schauer J. and Maier G. (2014). Media Mix Optimization - Applying a Quadratic Knapsack Model . In Proceedings of the 3rd International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-017-8, pages 363-370. DOI: 10.5220/0004825803630370


in Bibtex Style

@conference{icores14,
author={Ulrich Pferschy and Joachim Schauer and Gerhild Maier},
title={Media Mix Optimization - Applying a Quadratic Knapsack Model},
booktitle={Proceedings of the 3rd International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2014},
pages={363-370},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004825803630370},
isbn={978-989-758-017-8},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 3rd International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - Media Mix Optimization - Applying a Quadratic Knapsack Model
SN - 978-989-758-017-8
AU - Pferschy U.
AU - Schauer J.
AU - Maier G.
PY - 2014
SP - 363
EP - 370
DO - 10.5220/0004825803630370