article

To Show or Not Show: Using User Profiling to Manage Internet Advertisement Campaigns at Chitika

Authors:

Radha Mookerjee,

Subodha Kumar,

Vijay S. MookerjeeAuthors Info & Claims

Interfaces, Volume 42, Issue 5

Pages 449 - 464

https://doi.org/10.1287/inte.1120.0644

Published: 01 September 2012 Publication History

Abstract

We study the problem of an Internet advertising firm that wishes to maximize advertisement (ad) revenue, subject to click-through rate restrictions imposed by the publisher who controls the website on which the ads are displayed. The problem is directly motivated by Chitika, an Internet advertising firm that operates in the Boston area. Chitika contracts with publishers to place relevant ads over a specified period, usually one month, on publisher websites. We develop a predictive model of a visitor clicking on a given ad. Using this prediction of the probability of a click, we develop a decision model that uses a varying threshold to decide whether or not to show an ad to the visitor. We vary the threshold depending on (1) the cumulative number of times an ad has been shown and (2) the cumulative number of clicks on the ad. The decision model's objective is to maximize the advertising firm's revenue subject to a click-through rate constraint. The implemented models work in real time in Chitika's advertising network. We also discuss the implementation challenges and business impact.

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Fridgeirsdottir KNajafi-Asadolahi S(2018)Cost-per-Impression Pricing for Display AdvertisingOperations Research10.1287/opre.2017.169766:3(653-672)Online publication date: 1-Jun-2018
https://dl.acm.org/doi/10.1287/opre.2017.1697
Alexandrescu AButincu CCraus M(2017)Recommending Products and Services Belonging to Online Businesses Using Intelligent AgentsService Science10.1287/serv.2017.01889:4(338-348)Online publication date: 1-Dec-2017
https://dl.acm.org/doi/10.1287/serv.2017.0188
Hojjat ATurner JCetintas SYang J(2017)A Unified Framework for the Scheduling of Guaranteed Targeted Display Advertising Under Reach and Frequency RequirementsOperations Research10.1287/opre.2016.156765:2(289-313)Online publication date: 1-Apr-2017
https://dl.acm.org/doi/10.1287/opre.2016.1567
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Published In

Interfaces Volume 42, Issue 5

September-October 2012

96 pages

ISSN:0092-2102

EISSN:1526-551X

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INFORMS

Linthicum, MD, United States

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Published: 01 September 2012

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Fridgeirsdottir KNajafi-Asadolahi S(2018)Cost-per-Impression Pricing for Display AdvertisingOperations Research10.1287/opre.2017.169766:3(653-672)Online publication date: 1-Jun-2018
https://dl.acm.org/doi/10.1287/opre.2017.1697
Alexandrescu AButincu CCraus M(2017)Recommending Products and Services Belonging to Online Businesses Using Intelligent AgentsService Science10.1287/serv.2017.01889:4(338-348)Online publication date: 1-Dec-2017
https://dl.acm.org/doi/10.1287/serv.2017.0188
Hojjat ATurner JCetintas SYang J(2017)A Unified Framework for the Scheduling of Guaranteed Targeted Display Advertising Under Reach and Frequency RequirementsOperations Research10.1287/opre.2016.156765:2(289-313)Online publication date: 1-Apr-2017
https://dl.acm.org/doi/10.1287/opre.2016.1567
Mookerjee RKumar SMookerjee V(2017)Optimizing Performance-Based Internet Advertisement CampaignsOperations Research10.1287/opre.2016.155365:1(38-54)Online publication date: 1-Feb-2017
https://dl.acm.org/doi/10.1287/opre.2016.1553
Sun ZDawande MJanakiraman GMookerjee V(2017)Not Just a FadInformation Systems Research10.1287/isre.2017.069728:3(511-528)Online publication date: 1-Sep-2017
https://dl.acm.org/doi/10.1287/isre.2017.0697
Pandey SDutta GJoshi H(2017)Survey on Revenue Management in Media and BroadcastingInterfaces10.1287/inte.2017.088647:3(195-213)Online publication date: 1-Jun-2017
https://dl.acm.org/doi/10.1287/inte.2017.0886
Johar MMookerjee VSarkar S(2014)Selling vs. ProfilingInformation Systems Research10.5555/2895238.289524325:2(285-306)Online publication date: 1-Jun-2014
https://dl.acm.org/doi/10.5555/2895238.2895243

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Optimizing Performance-Based Internet Advertisement Campaigns

The Visual-Cognitive Model for Internet Advertising in Online Market Places

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