Scheduling Advertising on Cable Television

Operations Research, Forthcoming

42 Pages Posted: 21 Nov 2022

See all articles by Sebastian Souyris

Sebastian Souyris

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology

Sridhar Seshadri

University of Illinois at Urbana Champaign; Indian School of Business

Sriram Subramanian

Independent

Date Written: August 1, 2022

Abstract

Advertisement scheduling is a daily essential operational process in the television business. Efficient distribution of viewers among advertisers allows the television network to satisfy contracts and increase ad sale revenues. Ad scheduling is a challenging multi-period, mixed-integer programming problem in which the network must create schedules to meet advertisers' campaign goals and maximize ad revenues. Each campaign must meet a specific target group of viewers and a unique set of constraints. Moreover, the number of viewers is uncertain. To solve this problem, we develop and implement a practical approach that combines mathematical programming and machine learning to create daily schedules. These schedules are of high quality according to standard business metrics and the small integer programming gap. Leading networks in the United States and India using our methods experience a 3% to 5% revenue increase.

Keywords: scheduling, revenue management, analytics, machine learning, advertising, television--business

Suggested Citation

Souyris, Sebastian and Seshadri, Sridhar and Subramanian, Sriram, Scheduling Advertising on Cable Television (August 1, 2022). Operations Research, Forthcoming , Available at SSRN: https://ssrn.com/abstract=4275054

Sebastian Souyris (Contact Author)

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology ( email )

110 8th St
Troy, NY 12180
United States

Sridhar Seshadri

University of Illinois at Urbana Champaign ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

Indian School of Business ( email )

Hyderabad, Gachibowli 500 019
India

Sriram Subramanian

Independent

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