Providing a New Decision Model in Internet Advertising Planning Using Non-dominated Sorting Genetic Algorithm II

Document Type : Research Paper


1 Associate Prof. Faculty of Management and Economics, Shahid Bahonar University of Kerman, Iran.

2 MSc., Faculty of Management and Economics, Shahid Bahonar University of Kerman, Iran.

3 Prof., Faculty of Management and Economics, Shahid Bahonar University of Kerman, Iran.


The present study aimed to provide a decision model in Internet advertising planning using multi-objective genetic algorithm. The proposed model is a model for distributing advertising resources through the web to optimize the effect of advertising, based on research literature and according to the characteristics of advertising through the web. This model can simultaneously consider the interests of network managers and advertisers.
The present study is in the category of descriptive research in terms of method and nature and is a survey in terms of implementation and also applied in terms of purpose. In this research, since the proposed model is a multi-objective optimization model with high dimensions, the multi-objective genetic optimization algorithm has been used to solve it.
In this study, unlike previous studies, by simultaneously considering the conflicting goals of applicants for advertising through the web (reducing advertising costs) and webmasters (increasing profits from the provision of services), about How to better optimize the allocation of advertising resources to the website was discussed and a new decision model was presented that had two conflicting goals. In fact, this multi-objective model not only maximizes website revenue but also reduces the cost to the applicant of advertising; therefore, the mentioned model can be the basis of the work of these two. On the other hand, based on the characteristics of advertising through the web and existing pricing strategies, a hybrid pricing strategy was created based on the variables "cost per thousand views" and "cost per click in this research". Then, a new multi-objective optimization decision model based on this strategy was proposed. In this model, the interests of webmasters and advertisers are considered. Finally, by providing a computational example and numerical results of the simulation, the effectiveness of the model and algorithm is proved.
The simulation results showed that the optimization model and algorithm are justified and feasible. Also, the set of optimal Pareto answers obtained from solving the model can satisfy the webmasters and applicants for advertising. Using this model, they interact and compromise and try to consider the interests of another person. Considering that by solving the proposed model, unlike other models, the interests of both stakeholders have been considered, the answer set is included in the win-win strategy. Therefore, since the validation of this model is done through simulation, in practice, network administrators can when coding ads on web pages by applying the mathematical relationships provided in the proposed model, the method of calculating the cost of applicants for advertising is logical.  And provide a list of possible suggestions to the applicant. In this list, different combinations of simultaneous decision variables at the desired level, by maximizing the income of network managers, minimize the costs of each applicant according to their opinion, which leads to the adoption of more efficient pricing strategies.


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