Media Mix Optimization - Applying a Quadratic Knapsack Model

Ulrich Pferschy, Joachim Schauer, Gerhild Maier


In this contribution we present an optimization model for deciding on the best selection of advertising media to be used in a promotional campaign. The effect of each single medium and each pair of media is estimated from the evaluation data of past campaigns taking into account a similarity measure between the attributes and goals of campaigns. The resulting discrete optimization model is a Quadratic Knapsack Problem which we solve by a genetic algorithm. Then campaign budget is assigned to each selected advertising medium based on a statistical estimation from previous campaigns. Our optimization tool is integrated in the marketing management software solution MARMIND.


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Paper Citation

in Harvard Style

Pferschy U., Schauer J. and Maier G. (2014). Media Mix Optimization - Applying a Quadratic Knapsack Model . In Proceedings of the 3rd International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-017-8, pages 363-370. DOI: 10.5220/0004825803630370

in Bibtex Style

author={Ulrich Pferschy and Joachim Schauer and Gerhild Maier},
title={Media Mix Optimization - Applying a Quadratic Knapsack Model},
booktitle={Proceedings of the 3rd International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},

in EndNote Style

JO - Proceedings of the 3rd International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - Media Mix Optimization - Applying a Quadratic Knapsack Model
SN - 978-989-758-017-8
AU - Pferschy U.
AU - Schauer J.
AU - Maier G.
PY - 2014
SP - 363
EP - 370
DO - 10.5220/0004825803630370