Optimal advertisement planning for multi products incorporating segment specific and spectrum effect of different medias

Abstract

A large part of any firm’s investment goes in advertising and therefore planning of an appropriate media for advertisement is the need of today so as to achieve the best returns in terms of wider reach over potential market. In this paper, we deal with a media planning problem for multiple products of a firm in a market which is segmented geographically into various regional segments with diverse language and cultural base. As such each of these regional segments responds to regional advertising as well as national advertising which reaches them with a fixed spectrum. The objective is to plan an advertisingmedia (national and regional media) for multiple products in such a way that maximizes the total reach which is measured through each media exclusively as well as through their combined impact. The problem is formulated as a multi-objective programming problem and solved through goal programming technique. A real life case is provided to illustrate the applicability of the proposed model.