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Media Company Uses Analytics to Schedule Radio Advertisement Spots

Author

Listed:
  • Saravanan Venkatachalam

    (Department of Industrial and Systems Engineering, Wayne State University, Detroit, Michigan 48202)

  • Fion Wong

    (JDA Software Group, Inc., Roswell, Georgia 30076)

  • Emrah Uyar

    (JDA Software Group, Inc., Roswell, Georgia 30076)

  • Stan Ward

    (JDA Software Group, Inc., Roswell, Georgia 30076)

  • Amit Aggarwal

    (iHeartMedia Inc., New York, New York 10019)

Abstract

In this paper, we describe the implementation of an optimization suite (OS) to facilitate the scheduling of radio advertisements for one of the largest media companies in the United States. Advertisements are scheduled adhering to complex criteria from the advertisers with the objective of maximizing the revenue for the company. Advertisers offer two types of flexibility for demand fulfillment: market flexibility provides an opportunity to shift the demand across demographics, and time flexibility allows the demand to be shifted across the broadcasting time horizon. The scale of inventories, fair and equitable distribution, flexibilities, and other complex criteria from the advertisers necessitated the development of a sophisticated OS to generate rosters for the placement of advertisements. The OS uses optimization models and four heuristics procedures to generate an advertisement placement roster for each station. The company has adapted the OS into its information systems to seamlessly incorporate optimization into its decision-making process.

Suggested Citation

  • Saravanan Venkatachalam & Fion Wong & Emrah Uyar & Stan Ward & Amit Aggarwal, 2015. "Media Company Uses Analytics to Schedule Radio Advertisement Spots," Interfaces, INFORMS, vol. 45(6), pages 485-500, December.
    • Handle: RePEc:inm:orinte:v:45:y:2015:i:6:p:485-500
    DOI: 10.1287/inte.2015.0825
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    References listed on IDEAS

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    1. Srinivas Bollapragada & Hong Cheng & Mary Phillips & Marc Garbiras & Michael Scholes & Tim Gibbs & Mark Humphreville, 2002. "NBC's Optimization Systems Increase Revenues and Productivity," Interfaces, INFORMS, vol. 32(1), pages 47-60, February.
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    Cited by:

    1. Marcel Lincényi & Fabus Michal, 2020. "Development of the radio market in the Slovak Republic in the years 2016 to 2019," Post-Print hal-03271853, HAL.
    2. Marcel Lincényi & Michal Fabuš, 2020. "Development of the radio market in the Slovak Republic in the years 2016 to 2019," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(3), pages 689-702, September.

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