Turner Optimizes the Allocation of Audience Deficiency Units

José Antonio Carbajal () and Wes Chaar ()
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José Antonio Carbajal: Turner Broadcasting System, Inc., Atlanta, Georgia 30318
Wes Chaar: Turner Broadcasting System, Inc., Atlanta, Georgia 30318

Interfaces, 2017, vol. 47, issue 6, 518-536

Abstract: Each broadcasting quarter, advertisement-based networks face the challenge of allocating make-good units that reduce the liability they have incurred because of fewer people in the audiences they have guaranteed to advertisers. Turner Broadcasting System, Inc. has developed an optimization framework that improves the process of allocating make-good units across hundreds of sales plans in a dynamic setting in which priorities change continually and customer relationship management is of paramount importance. This system, called the Liability Efficiency Optimizer (LEO), has significantly simplified the process of allocating audience deficiency units at Turner, reducing it from weeks down to minutes, and has enabled its users to make the most profitable use of the liability airtime inventory while honoring advertiser requirements in terms of selling-title mix and unit distribution across weeks. This system has been deployed to all the domestic networks operated by Turner, and its monetary benefit has been conservatively estimated to be $10 million of recurring yearly liability reduction over the manual process it replaced.

Keywords: media industry; TV advertising; make goods; multicriteria optimization; integer programming (search for similar items in EconPapers)
Date: 2017
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