Operations Research 2018 Abstract Submission

Planning football world cup commercials for TF1, the largest tv channel in France

Invited abstract in session WB-6: Business Track, stream Business Track.

Wednesday, 11:00-12:40
Room: 1g. Budapest

Authors (first author is the speaker)

1. Julien Darlay
LocalSolver
2. Tiphaine Rougerie
LocalSolver

Abstract

TF1 is a major media group in Europe and the leading television group in France, with almost 20 % audience share and 45 % of the TV advertising market. Television ads slots are marketed according to the estimated viewing audience. Every month, the main channels open their reservation planning for a period of 60 days. Advertising companies then send their requests to channels. One or two weeks after TF1 returns its acceptance decision for each request. TF1 optimizes its decisions to globally maximize its revenue while satisfying packing constraints and mutual exclusions of competing products in each commercial break.
Sports events can attract many viewers (as an example, the 2006 world cup final represented 80% of the market share) and are massively requested by advertising companies. During the football world cup TF1 sells commercial breaks in packages. A package is composed of a given number of breaks in different matches, for instance 3 breaks distributed as follows: one during France-Australia, one break in Russia – Saudi Arabia or in Germany - Mexico and one last break in another group of matches. TF1 then decides to accept or decline each request but can also make a counter-proposal for an equivalent package or exchange a match in a package with another in the same group. These decisions are optimized to maximize the revenue of TF1 while satisfying packing constraints, mutual exclusions between competing products but also equity between advertisers, budget constraints, priorities and so on.
This talk presents the mathematical model designed to solve this combinatorial problem for TF1 using LocalSolver.

Keywords

Status: accepted


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