Budget optimization for advertisers as contextual advertising market participants

Authors

  • Леонід Юрійович Гальчинський National Technical University of Ukraine «Kyiv Polytechnic Institute», 37, Prospect Peremohy, 03056, Kyiv-56, Ukraine https://orcid.org/0000-0002-3805-1474
  • Дмитро Станіславович Сташкевич National Technical University of Ukraine «Kyiv Polytechnic Institute», 37, Prospect Peremohy, 03056, Kyiv-56, Ukraine

DOI:

https://doi.org/10.15587/2312-8372.2016.60649

Keywords:

market web advertising, contextual search, budget optimization, statistical arbitrage, expectation-maximization algorithm

Abstract

The problem of budget optimizing for advertisers in the market of modern Internet advertising was investigated depending on the choice of strategy of contextual advertising when using the RTB technology and found that the long-term strategy that uses the methodology of statistical arbitrage has good prospects. The importance of this issue is caused by the energetic innovative changes in Internet advertising and by the rapid growth of contextual advertising both in the world and in Ukraine. The conducted testing of the EM-algorithm model in the computer instruction paradigm established a substantial increase in efficiency of an advertiser’s budget use. The conducted numerical modeling using special software has shown that the statistical arbitrage model has some differences, depending on the rate selection parameters, but in all cases it gives better results when statistical arbitrage is not applied.

The research results are useful for advertisers because they make it possible to optimize the advertising budget and are important for the Internet advertising market, because they increase its effectiveness in general.

Author Biographies

Леонід Юрійович Гальчинський, National Technical University of Ukraine «Kyiv Polytechnic Institute», 37, Prospect Peremohy, 03056, Kyiv-56

Candidate of Technical Sciences, Associate Professor

Department of mathematical design of the economic systems

Дмитро Станіславович Сташкевич, National Technical University of Ukraine «Kyiv Polytechnic Institute», 37, Prospect Peremohy, 03056, Kyiv-56

Department of mathematical design of the economic systems 

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Published

2016-01-21

How to Cite

Гальчинський, Л. Ю., & Сташкевич, Д. С. (2016). Budget optimization for advertisers as contextual advertising market participants. Technology Audit and Production Reserves, 1(3(27), 30–36. https://doi.org/10.15587/2312-8372.2016.60649

Issue

Vol. 1 No. 3(27) (2016): Problems of macroeconomics and socio-economic development. Development of productive forces and regional economy

Section

Economic Cybernetics: Original Research

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Copyright (c) 2016 Леонід Юрійович Гальчинський, Дмитро Станіславович Сташкевич

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