Multi-channel Advertising Time Allocation Model

Daypart allocation means allocation means TV companies allocate and sells commercial time spots to advertisers. With the competition in media industry becoming fiercer than ever, TV companies can not get more market share and higher TV Rating with more inputs. However, they pay more and more attention to daypart allocation in order to increase advertisement sells income by improving the efficiency in the use of advertising time. Currently, there are many researches on media industry, while a little focuses on daypart allocation. This paper has a try in this aspect based on the former researches by other scholars.This paper focuses on the TV companies with multi-channel how to allocate daypart with upfront market and scatter market. This paper gets the daypart allocation and control of a multi-channel TV company through formulating optimal daypart allocation models based on the Bollapragada (2002) model used in a single channel TV company (NBC). This paper testifies TV companies should control daypart capacity strictly and improve ad performance properly by solving the models through dynamic programming and integrate programming algorithm. This paper solves models through Lingo software due to thousands of variables and gives codes in appendix.Meanwhile, this paper adopts real operation data of a top TV company in China, and gets the specific daypart allocation based the models formulated in this paper. In addition, this paper gives suggestions on increasing efficiency in the use of advertising time while analyzing factors that influence daypart allocation and helps multi-channel TV companies allocate daypart in practice.