Advertisement Scheduling-Revenue Management with TV Break Preference-Based Cancellations

In broadcasting advertisements, commercial breaks are offered to heterogeneous clients with uncertain demand. Interested in the efficient utilization of its limited airtime inventory, the TV station has to decide simultaneously which requests to accept or to deny and when ad spots should be scheduled. In addition, there may be clients that have preferences for specific ad slots with cancellation rates depending on provider’s slot assignments. Provoking the abortion of reservations or even relationships with the provider in traditional optimization, we provide a mathematical model considering both combinatorial aspects of the problem and said customer preferences. Furthermore, a simulation is performed in order to test the efficiency of the proposed approach.