A robust optimization approach to budget optimization in online marketing campaigns
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F25%3A101968" target="_blank" >RIV/60460709:41110/25:101968 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1007/s10100-025-00984-x" target="_blank" >https://doi.org/10.1007/s10100-025-00984-x</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/s10100-025-00984-x" target="_blank" >10.1007/s10100-025-00984-x</a>
Alternative languages
Result language
angličtina
Original language name
A robust optimization approach to budget optimization in online marketing campaigns
Original language description
This paper presents a novel approach to strategic budget allocation in online marketing campaigns using robust optimization techniques. We develop a linear programming model that specifically addresses uncertainties in conversion cost coefficients, a critical challenge in digital marketing performance measurement. The model's distinctive feature lies in its combination of robust optimization with fuzzy linguistic scales, which enables marketing professionals to express uncertainty levels in their expert estimations qualitatively. Using real campaign data obtained from advertising platform management tools, we demonstrate how the proposed robust counterpart transforms traditional deterministic optimization into a more resilient decision-making framework. Our comparative analysis between deterministic and robust approaches reveals that while the robust solution may sacrifice nominal optimality, it provides protection against cost coefficient fluctuations typically encountered in online marketing. The key contribution is a practical decision support tool that allows marketers to systematically incorporate their risk preferences and uncertainty expectations into budget allocation decisions. Case study demonstrates the model's ability to optimize performance while managing risks in digital advertising markets with volatile conversion costs.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
10102 - Applied mathematics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Central European Journal of Operations Research
ISSN
1435-246X
e-ISSN
1435-246X
Volume of the periodical
00
Issue of the periodical within the volume
00
Country of publishing house
US - UNITED STATES
Number of pages
32
Pages from-to
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UT code for WoS article
001469897500001
EID of the result in the Scopus database
2-s2.0-105003011094