An iterative auction model for digital signage network scheduling

Abstract

Digital signage network (DSN) is capable of delivering customized content to designated screens in a real-time or near real-time manner, which provides tremendous potential for building dynamic demand stimulation tools. However current DSN media buying process is mainly carried out through manually conducted negotiation between the DSN operator and the advertisers. This practice does not capitalize the unique technology advantage offered by the newly emerged advertising medium. In this paper, we propose automated DSN media buying models which allow advertisers to customize their promotion schedules in a highly responsive manner. Specifically, we design an iterative bidding model for DSN promotion scheduling. We develop a lower bound that guarantees the solution quality given a small price increment at each round of bidding. Through computational studies, we also evaluate the impact of scheduling customization levels on the overall solution value and the revenue performance of the proposed model.