Threshold Influence Model for Allocating Advertising Budgets

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Atsushi Miyauchi, Yuni Iwamasa, Takuro Fukunaga, Naonori Kakimura ;
Proceedings of the 32nd International Conference on Machine Learning, PMLR 37:1395-1404, 2015.

Abstract

We propose a new influence model for allocating budgets to advertising channels. Our model captures customer’s sensitivity to advertisements as a threshold behavior; a customer is expected to be influenced if the influence he receives exceeds his threshold. Over the threshold model, we discuss two optimization problems. The first one is the budget-constrained influence maximization. We propose two greedy algorithms based on different strategies, and analyze the performance when the influence is submodular. We then introduce a new characteristic to measure the cost-effectiveness of a marketing campaign, that is, the proportion of the resulting influence to the cost spent. We design an almost linear-time approximation algorithm to maximize the cost-effectiveness. Furthermore, we design a better-approximation algorithm based on linear programming for a special case. We conduct thorough experiments to confirm that our algorithms outperform baseline algorithms.

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