A decision making model under uncertainty for advertisement allocation problem with multiple objectives

Abstract

This paper presents a multi-objective model to assist in developing advertisement allocation patterns on television. Television advertising is one of the main tools of marketing where a manufacturer tries to put forth maximum information about his product. This helps in creating awareness about his product and thereby increases the profit margins. Telecasting a certain ad on television is quite costly and thus required proper allocation and optimization. Optimal number if ads for a certain ad will help in achieving economic sustainability and reducing e-waste generated by televisions. The carbon footprint for digital television was found to be 0.088 kg CO2 / viewer-hour according ato the experimental calculations. Thus if the advertiser adopts the optimum advertisement allocation policy then it will reduce the carbon footprints and will help advertiser in performing his social responsibility. Duration of long and short kinds of ads is considered which need to be telecasted on different genre of channels. Different time zones of a day have different number of viewers thereby resulting in different advertising impacts. Moreover, certain products are gender orientated and they must be taken care to be advertised in the proper genre of channel. Maximization of the impact of advertising and minimization of the advertising cost are taken as the objectives if this study. Moreover, in this paper the budget allocation is not a crisp quantity but is considered to be a random variable following normal distribution. The model is tested on a numerical illustration to presents the results and to show its applicability.

Keywords

• Advertisement allocation
• Advertisement impact
• Membership function
• Stochastic variable