Application of optimal control theory on optimal advertising expenditure in monopoly

Presented paper is being focused on Optimal control theory, Variation Calculus and its economic application. Aim of this research paper is to shortly describe Optimal control and Variation Calculus and to present how can we deal with these type of issues. The last part of this paper is presenting possible economic application of Optimal control, based on the maximization of profit in monopoly while introducing new product on the market. Our control variable is the advertising rate, which affects the profit of monopoly through advertising expenditures and as a state variable was the market share defined.

Media Strategy of TV Advertising in Indonesia

There is an increasing number of TV channel in Indonesia. The competitive environment in TV advertising has made advertisers pull many different media strategies to get audience’s attention. The media strategies consider several factors, such as television channel, product categories, program rating, and advertising rates. The purpose of this research is to explore media strategy for TV advertising in Indonesia, defined by number of advertising played on TV. We analyzed data on the behavior of TV advertisers in February 2010. From the research we found that television channel, product categories, and advertising rate had significant relationships with the number of advertising played on TV. Meanwhile, program rating did not have significant relationships with the number of advertising played on TV.