IE-OPIM Joint Graduate Seminar: Kemal Kilic (Sabanci University)
Exact and heuristic methods for personalized display advertising in virtual reality platforms
Date: Wednesday, May 3, 2017
Time: 13:40 – 14:30
Location: FENS G035
Title: Exact and heuristic methods for personalized display advertising in virtual reality platforms
Virtual reality (VR) platforms are becoming popular environments for personalized advertisement. In the current paper, motivated from a real life problem faced by an online VR platform provider, we study a personalized advertisement assignment problem. The provider company runs a VR website in which users log in/out and change their virtual locations. The company has also agreements with a number of advertisers willing to pay for ad locations to reach these users. Every time a user visits a new location, the company displays one of the ads of these advertisers. At the end of a fixed time horizon, a reward is collected which depends of the number of ads of each advertiser displayed to different users. In this setup, the objective is to make these assignments dynamically in order to maximize the expected reward. We study this problem in a framework where the behavior of users are modeled with two-state continuous-time Markov processes. We describe two exact and four heuristic algorithms. We compare these algorithms on some examples, and we conduct a sensitivity analysis over problem and algorithm specific parameters. Exact algorithms suffer from the curse of dimensionality and therefore it is prohibitive to be use them in real life size problems. In those problems, heuristic methods should be considered instead.
Keywords: OR in Entertainment, Virtual Environments, Personalized Advertisement, Stochastic Optimization, Markov Processes
Short Bio: Dr. Kemal Kilic received the B.Sc. degree from the Electronics Engineering Department, Bogazici University, Istanbul, Turkey, M.Sc. degree from Industrial Engineering Department, Bilkent University, Ankara, Turkey and PhD degree from the Mechanical and Industrial Engineering Department, University of Toronto, Canada. He is currently an associate professor in the Faculty of Engineering and Natural Sciences, Sabanci University, Istanbul, Turkey. His current research interest includes data mining, innovation management, health informatics and decision making under uncertainty.