Publication Type
Journal Article
Version
submittedVersion
Publication Date
10-2017
Abstract
The advent of big data has created opportunities for firms to customize their products and services to unprecedented levels of granularity. Using big data to personalize an offering in real time, however, remains a major challenge. In the mobile advertising industry, once a customer enters the network, an ad-serving decision must be made in a matter of milliseconds. In this work, we describe the design and implementation of an ad-serving algorithm that incorporates machine-learning methods to make personalized ad-serving decisions within milliseconds. We developed this algorithm for Vungle Inc., one of the largest global mobile ad networks. Our approach also addresses other important issues that most ad networks face, such as user fatigue, budget restrictions, and campaign pacing. In an A/B test versus the company’s legacy algorithm, our algorithm generated a 23 percent increase in revenue per 1,000 impressions. Across the company’s network, this increase represents a $1 million increase in monthly revenue.
Keywords
mobile advertising, logistic regression, big data, feature selection, computational advertising, machine learning, cloud computing
Discipline
Business Administration, Management, and Operations | Databases and Information Systems | Operations and Supply Chain Management
Research Areas
Operations Management
Publication
Informs Journal on Applied Analytics
Volume
47
Issue
5
First Page
369
Last Page
471
ISSN
2644-0865
Identifier
10.1287/inte.2017.0903
Embargo Period
8-25-2021
Citation
DE REYCK, Bert; FRAGKOS, Ioannis; GRUKSHA-COCKAYNE, Yael; LICHTENDAHL, Casey; GUERIN, Hammond; and KRITZER, Andre.
Vungle Inc. improves monetization using big-data analytics. (2017). Informs Journal on Applied Analytics. 47, (5), 369-471.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6765
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
External URL
https://doi.org/10.1287/inte.2017.0903
Included in
Business Administration, Management, and Operations Commons, Databases and Information Systems Commons, Operations and Supply Chain Management Commons