Advertisement Scheduling-Revenue Management with TV Break Preference-Based Cancellations

摘要

1 Problem Statement Broadcasting advertisements is a major (if not the predominant) source of revenues for most TV channels. In 2011, all TV stations in Germany earned 3.9bn Euro net revenues by selling ad time in commercial breaks to advertisers [14]. As these service providers are faced with limited and perishable airtime inventory (i.e. advertising time slots) that is often regulated by law on the one hand and varying demand of clients with heterogeneous preferences and willingness to pay on the other hand, a revenue management problem arise. OR techniques used to maximize total revenues are reported to generate millions of induced revenues at leading broadcasting networks in the US and France [1,2].