Dynamic Budget Allocation For a Social Media Advertising Campaign

The objective of this study is to address the optimization problem of a dynamic budget allocation policy for an advertising campaign disseminated through a social network. The problem is characterized by certain final state constraints, representing the desired exposure levels of market segments, and by the final time, which is to be minimized. The model incorporates specific features of social network marketing, and the minimum-time problem structure is relatively rare in the optimal control literature for marketing applications. By applying Pontryagin's maximum principle, the optimality conditions of the problem can be derived. Furthermore, the use of effectiveness functions and numerical simulations allows for the illustration of the obtained results.

P.S. The PDF FIle is written in Italian