Reinforcement learning-based optimization strategy for online advertising budget allocation

The advertising budget allocation problem for financial service is dealt with based on statistical learning and evolutionary computation in this paper. Taking the carry-over effects of the advertising into account, the least squares support vector machine regression (LS-SVMR) is used to construct the response model. A comparison between the proposed response model and traditional regression method based market response models is implemented. The results show the effectiveness and validity of the former model. Taking the budgets allocated to every month in the planning horizon as decision variables, the budget allocation optimization model is built and an improved differential evolution algorithm is used to find the optimal solutions. Finally, the proposed budget allocation method is illustrated by a practical problem.

This research aims to present an analysis to optimally allocate advertising budgets based on single source data on consumers’ views of TV advertising. A model of consumer behavior and an optimality criterion for the advertising budget allocation are proposed together with a GA based optimization algorithm. Through the analysis, we discovered some knowledge to improve the effectiveness of advertising for several products.Keywordsadvertisingoptimal budget allocationGA

The study aims to investigate children’s attitude towards different advertising formats including TV ads, in-movie product placement and in-game advertisements, using a web-based between subjects’ experimental design among a sample of Egyptian children aged between 6 to 13 years. Children’s attitude development by advertising efforts is considered under investigated in literature particularly in Arab cultures and as they are considered as powerful influencers to parents’ purchase decisions, the study contributes to a better understanding of children’s attitudes that will guide mangers in making wiser advertising budget allocation. The results showed that there is a significant different impact of the investigated advertising formats on children’s attitude towards sports brands with higher cognitive, affective and behavioral responses resulted from the exposure to traditional video advertising compared to in- movie product placement and in-game advertisements.

Advertising budget allocation with carryover effects over time is a problem that was treated extensively by economists. Additional developments were carried out by Sethi who has also provided some outstanding review papers. The model treated by Sethi were essentially defined in terms of optimal control problems using deterministic advertising models while my own were essentially sales response stochastic models with advertising budget determined by stochastic control problems. These problems continue to be of academic and practical interest. Issues relating to the “advertising message” such as truthful claims advertising directed to first time buyers has not attracted much attention however.

An empirical investigation of the advertising spending decisions of a multiproduct retailer