IDEAS home Printed from https://ideas.repec.org/a/inm/ormksc/v29y2010i2p336-347.html
   My bibliography  Save this article

Optimal Internet Media Selection

Author

Listed:
  • Peter J. Danaher

    (Melbourne Business School, Carlton, Victoria 3053, Australia)

  • Janghyuk Lee

    (Korea University Business School, An-am, Seong-buk, Seoul, South Korea)

  • Laoucine Kerbache

    (Department of OMIT and the Research Center GREGHEC, HEC School of Management, 78351 Paris, France)

Abstract

In this study we develop a method that optimally selects online media vehicles and determines the number of advertising impressions that should be purchased and then served from each chosen website. As a starting point, we apply Danaher's [Danaher, P. J. 2007. Modeling page views across multiple websites with an application to Internet reach and frequency prediction. (3) 422–437] multivariate negative binomial distribution (MNBD) for predicting online media exposure distributions. The MNBD is used as a component in the broader task of media selection. Rather than simply adapting previous selection methods used in traditional media, we show that the Internet poses some unique challenges. Specifically, online banner ads and other forms of online advertising are sold by methods that differ substantially from the way other media advertising is sold. We use a nonlinear optimization algorithm to solve the optimization problem and derive the optimum online media schedule. Data from an online audience measurement firm and an advertising agency are used to illustrate the speed and accuracy of our method, which is substantially quicker than using complete enumeration.

Suggested Citation

  • Peter J. Danaher & Janghyuk Lee & Laoucine Kerbache, 2010. "Optimal Internet Media Selection," Marketing Science, INFORMS, vol. 29(2), pages 336-347, 03-04.
    • Handle: RePEc:inm:ormksc:v:29:y:2010:i:2:p:336-347
    DOI: 10.1287/mksc.1090.0507
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mksc.1090.0507
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mksc.1090.0507?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. John D. C. Little & Leonard M. Lodish, 1969. "A Media Planning Calculus," Operations Research, INFORMS, vol. 17(1), pages 1-35, February.
    2. Young-Hoon Park & Peter S. Fader, 2004. "Modeling Browsing Behavior at Multiple Websites," Marketing Science, INFORMS, vol. 23(3), pages 280-303, May.
    3. Danaher, Peter J. & Hardie, Bruce G.S., 2005. "Bacon With Your Eggs? Applications of a New Bivariate Beta-Binomial Distribution," The American Statistician, American Statistical Association, vol. 59, pages 282-286, November.
    4. Rust, Roland T., 1985. "Selecting network television advertising schedules," Journal of Business Research, Elsevier, vol. 13(6), pages 483-494, December.
    5. Peter J. Danaher, 2007. "Modeling Page Views Across Multiple Websites with an Application to Internet Reach and Frequency Prediction," Marketing Science, INFORMS, vol. 26(3), pages 422-437, 05-06.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hana Choi & Carl F. Mela & Santiago R. Balseiro & Adam Leary, 2020. "Online Display Advertising Markets: A Literature Review and Future Directions," Information Systems Research, INFORMS, vol. 31(2), pages 556-575, June.
    2. Thomas Niemand & Sascha Kraus & Sophia Mather & Antonio C. Cuenca-Ballester, 0. "Multilevel marketing: optimizing marketing effectiveness for high-involvement goods in the automotive industry," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-26.
    3. Amit Bhatnagar & Arun Sen & Atish P. Sinha, 2017. "Providing a Window of Opportunity for Converting eStore Visitors," Information Systems Research, INFORMS, vol. 28(1), pages 22-32, March.
    4. Rik Pieters & Michel Wedel, 2012. "Ad Gist: Ad Communication in a Single Eye Fixation," Marketing Science, INFORMS, vol. 31(1), pages 59-73, January.
    5. Konrad, Renata A., 2019. "Designing awareness campaigns to counter human trafficking: An analytic approach," Socio-Economic Planning Sciences, Elsevier, vol. 67(C), pages 86-93.
    6. Parham Fami Tafreshi & Mohammad Hasan Aghdaie & Majid Behzadian & Mahdieh Ghani Abadi, 2016. "Developing a Group Decision Support System for Advertising Media Evaluation: A Case in the Middle East," Group Decision and Negotiation, Springer, vol. 25(5), pages 1021-1048, September.
    7. Liberali, G. & Urban, G.L. & Dellaert, B.G.C. & Tucker, C. & Bart, Y. & Stremersch, S., 2016. "A New Method of Measuring Online Media Advertising Effectiveness: Prospective Meta-Analysis in Marketing," ERIM Report Series Research in Management ERS-2016-007-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Alex Jiyoung Kim & Subramanian Balachander, 2023. "Coordinating traditional media advertising and online advertising in brand marketing," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1865-1879, June.
    9. Thomas Niemand & Sascha Kraus & Sophia Mather & Antonio C. Cuenca-Ballester, 2020. "Multilevel marketing: optimizing marketing effectiveness for high-involvement goods in the automotive industry," International Entrepreneurship and Management Journal, Springer, vol. 16(4), pages 1367-1392, December.
    10. Shinjini Pandey & Goutam Dutta & Harit Joshi, 2017. "Survey on Revenue Management in Media and Broadcasting," Interfaces, INFORMS, vol. 47(3), pages 195-213, June.
    11. Shreyas Sekar & Milan Vojnovic & Se-Young Yun, 2021. "A Test Score-Based Approach to Stochastic Submodular Optimization," Management Science, INFORMS, vol. 67(2), pages 1075-1092, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. LEE, Janghyuk & KERBACHE, Laoucine, 2004. "Internet media planning : an optimization model," HEC Research Papers Series 806, HEC Paris.
    2. Glady, Nicolas & Lemmens, Aurélie & Croux, Christophe, 2015. "Unveiling the relationship between the transaction timing, spending and dropout behavior of customers," International Journal of Research in Marketing, Elsevier, vol. 32(1), pages 78-93.
    3. Peter J. Danaher & Michael S. Smith, 2011. "Modeling Multivariate Distributions Using Copulas: Applications in Marketing," Marketing Science, INFORMS, vol. 30(1), pages 4-21, 01-02.
    4. repec:tiu:tiutis:52e91e47-4a2d-4e7b-bb23-3926b842ae30 is not listed on IDEAS
    5. David A. Schweidel & Peter S. Fader & Eric T. Bradlow, 2008. "A Bivariate Timing Model of Customer Acquisition and Retention," Marketing Science, INFORMS, vol. 27(5), pages 829-843, 09-10.
    6. Kim, Chul & Jun, Duk Bin & Park, Sungho, 2018. "Capturing flexible correlations in multiple-discrete choice outcomes using copulas," International Journal of Research in Marketing, Elsevier, vol. 35(1), pages 34-59.
    7. David A. Schweidel & Young-Hoon Park & Zainab Jamal, 2014. "A Multiactivity Latent Attrition Model for Customer Base Analysis," Marketing Science, INFORMS, vol. 33(2), pages 273-286, March.
    8. Sahar Karimi, 2021. "Cross-visiting Behaviour of Online Consumers Across Retailers’ and Comparison Sites, a Macro-Study," Information Systems Frontiers, Springer, vol. 23(3), pages 531-542, June.
    9. Peter J. Danaher, 2007. "Modeling Page Views Across Multiple Websites with an Application to Internet Reach and Frequency Prediction," Marketing Science, INFORMS, vol. 26(3), pages 422-437, 05-06.
    10. Peter S. Fader & Bruce G. S. Hardie & Jen Shang, 2010. "Customer-Base Analysis in a Discrete-Time Noncontractual Setting," Marketing Science, INFORMS, vol. 29(6), pages 1086-1108, 11-12.
    11. Michael Trusov & Liye Ma & Zainab Jamal, 2016. "Crumbs of the Cookie: User Profiling in Customer-Base Analysis and Behavioral Targeting," Marketing Science, INFORMS, vol. 35(3), pages 405-426, May.
    12. Emilio Gómez-Déniz & Jorge Pérez-Rodríguez, 2015. "Closed-form solution for a bivariate distribution in stochastic frontier models with dependent errors," Journal of Productivity Analysis, Springer, vol. 43(2), pages 215-223, April.
    13. Danaher, Peter J. & Rust, Roland T., 1996. "Determining the optimal return on investment for an advertising campaign," European Journal of Operational Research, Elsevier, vol. 95(3), pages 511-521, December.
    14. Roland T. Rust & Ming-Hui Huang, 2014. "The Service Revolution and the Transformation of Marketing Science," Marketing Science, INFORMS, vol. 33(2), pages 206-221, March.
    15. Jura Liaukonyte & Thales Teixeira & Kenneth C. Wilbur, 2015. "Television Advertising and Online Shopping," Marketing Science, INFORMS, vol. 34(3), pages 311-330, May.
    16. Schröder, Nadine & Falke, Andreas & Hruschka, Harald & Reutterer, Thomas, 2019. "Analyzing the Browsing Basket: A Latent Interests-Based Segmentation Tool," Journal of Interactive Marketing, Elsevier, vol. 47(C), pages 181-197.
    17. Park, Chang Hee, 2017. "Online Purchase Paths and Conversion Dynamics across Multiple Websites," Journal of Retailing, Elsevier, vol. 93(3), pages 253-265.
    18. Vinit Kumar Mishra & Karthik Natarajan & Dhanesh Padmanabhan & Chung-Piaw Teo & Xiaobo Li, 2014. "On Theoretical and Empirical Aspects of Marginal Distribution Choice Models," Management Science, INFORMS, vol. 60(6), pages 1511-1531, June.
    19. Davis, Joseph G. & Sundaram, David, 1995. "PETAPS: A prototype decision support system for consumer product marketing and promotion," European Journal of Operational Research, Elsevier, vol. 87(2), pages 247-256, December.
    20. John D. C. Little, 2004. "Models and Managers: The Concept of a Decision Calculus," Management Science, INFORMS, vol. 50(12_supple), pages 1841-1853, December.
    21. Beltran-Royo, C. & Zhang, H. & Blanco, L.A. & Almagro, J., 2013. "Multistage multiproduct advertising budgeting," European Journal of Operational Research, Elsevier, vol. 225(1), pages 179-188.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:29:y:2010:i:2:p:336-347. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.