Advertisement revenue management: Determining the optimal mix of skippable and non-skippable ads for online video sharing platforms

Skippable video advertisements (ads), which allow uninterested users to skip the ad after a few seconds, have witnessed rapid growth in the past few years. While their advantages for viewers and advertisers are obvious, they pose an ad revenue optimization problem for their publishers, i.e., the Video Sharing Platforms (VSPs). The VSPs need to critically balance the higher but uncertain revenue from skippable ads with the lower but guaranteed...