Method for Efficiently Allocating an Advertising Budget Between Web Advertising Entities
There are provided a computing system capable of allocating an advertisement budget of an advertisement campaign between a plurality of advertisement entities and a method of operating thereof. The method comprises: obtaining, for each of the plurality of advertisement entities, a respective optimal target frontier function representing for each given advertising cost an optimal value of return and configured to follow the law of diminishing return; receiving a budget constraint for the advertisement budget; generating a global target frontier function by summing each of the received optimal target frontier functions; processing the generated global target frontier function to determine for each of the plurality of advertisement entities an optimal, with respect of at least the received budget constrain, advertising cost value such that a sum of the optimal advertising cost values meets the budget constraint; and reporting the determined values.
1 . A method of operating a computing system capable of allocating an advertisement budget of an advertisement campaign between a plurality of advertisement entities, the method comprising:
obtaining by the computer system, for each of the plurality of advertisement entities, a respective optimal target frontier function representing for each given advertising cost an optimal value of return and configured to follow the law of diminishing return;
receiving by the computer system a budget constraint for the advertisement budget;
generating, by the computer system, a global target frontier function by summing each of the received optimal target frontier functions;
processing, by the computer system, the generated global target frontier function to determine for each of the plurality of advertisement entities an optimal, with respect of at least the received budget constrain, advertising cost value such that a sum of the optimal advertising cost values meets the budget constraint; and
reporting the determined values.
2 . The method of claim 1 wherein processing the generated global target frontier function comprises determining a marginal equilibrium indicative of optimal advertising cost value for each of the plurality of advertisement entities.
3 . The method of claim 1 further comprising receiving by the computer system one or more constraints related to advertising entities and respecting these constraints when optimizing the global target frontier function.
4 . The method of claim 1 , wherein generating the global target frontier function comprises multiplying each of the received optimal target frontier functions by a binary inclusion variable, wherein if a value of a binary inclusion variable is determined to be zero, a corresponding advertisement entity is not included in the advertisement campaign.
5 . The method of claim 1 , wherein the determined optimal advertising cost values represent the amounts of money to be spent for respective advertisement entities.
6 . The method of claim 1 , wherein an advertisement entity is at least one of: a keyword, an advertisement channel, an advertisement portfolio.
7 . The method of claim 1 , further comprising:
receiving by the computer system one or more constraints selected from a group constituted return on investment (ROI), range of advertisement budget, range of advertising cost per advertisement entity, minimal advertisement budget, minimal advertising cost per advertisement entity, maximum cost, maximum advertising cost on a per advertisement entity, and
respecting these constraints when optimizing the global target frontier function.
8 . The method of claim 1 , wherein the budget constraint is extracted from a database.
9 . The method of claim 1 , wherein, for at least one advertisement entity, the optimal target frontier function is obtained responsive of probing an information resource on the world-wide web (WWW).
10 . The method of claim 1 , wherein reporting the determined values comprises displaying the optimal advertising cost values on a display.
11 . The method of claim 1 , wherein at least one optimal target frontier function is received through a user interface.
12 . The method of claim 7 , wherein at least one constraint is received through a user interface.
13 . A computing system capable of allocation of an advertisement budget of an advertisement campaign between a plurality of advertisement entities, comprising:
an input/output interface configured to receive, for each of the plurality of advertisement entities, a respective optimal target frontier function representing for each given advertising cost an optimal value of return and configured to follow the law of diminishing return and configured to receive a budget constraint for the advertisement budget;
a data storage configured to store the received data received via the input/output interface;
a processing unit configured to generate a global target frontier function by summing each of the received optimal target frontier functions and to process the generated global target frontier function to determine for each of the plurality of advertisement entities an optimal, with respect of at least the received budget constrain, advertising cost value such that a sum of the optimal advertising cost values meets the budget constraint.
14 . The computing system of claim 13 , further comprising a display unit for displaying the determined optimal advertising cost values in a form of at least one of tabulated data and a graph.
15 . The system of claim 13 , wherein the global target frontier function represents the overall profit of the advertisement campaign.
16 . The system of claim 13 , wherein generating the global target frontier function comprises multiplying each of the received optimal target frontier functions by a binary inclusion variable, wherein if a value of a binary inclusion variable is determined to be zero, a corresponding advertisement entity is not included in the advertisement campaign.
17 . The system of claim 13 , wherein the determined optimal advertising cost values represent the amounts of money to be spent for respective advertisement entities.
18 . The system of claim 13 , wherein an advertisement entity is at least one of: a keyword, an advertisement channel, an advertisement portfolio.
19 . The system of claim 13 , wherein, for at least one advertisement entity, the optimal target frontier function is obtained responsive of probing an information resource on the world-wide web (WWW).
20 . A non-transitory computer readable storage medium comprising computer readable program code embodied therein for operating a system capable of allocating an advertisement budget of an advertisement campaign between a plurality of advertisement entities; the computer readable program code to cause the system:
to obtain for each of the plurality of advertisement entities, a respective optimal target frontier function representing for each given advertising cost an optimal value of return and configured to follow the law of diminishing return;
to receive by the computer system a budget constraint for the advertisement budget;
to generate a global target frontier function by summing each of the received optimal target frontier functions;
to process the generated global target frontier function to determine for each of the plurality of advertisement entities an optimal, with respect of at least the received budget constrain, advertising cost value such that a sum of the optimal advertising cost values meets the budget constraint; and
to report the determined values.