search interests are in business applications of mathematical programming, practices of rev-enue management and spreadsheet engineer-ing. He obtained his PhD in operations research from UNC Chapel Hill in 1999. After getting his PhD degree, he spent three years working for an airline scheduling company and at a revenue management consulting firm. Susan Cholette is an assistant professor of decision sciences in the College of Business at

Internet advertising has seen a strong growth in recent years and search engine advertising has played an important role in that growth. Search engines continue to expand their business by providing new options of advertising. For example, Google provides a new advertisement mechanism based on cost-per-thousand-impression (CPM) payment called “site-targeted advertisement ” in addition to the famous “keyword search advertisement ” based on cost-per-click (CPC). While keyword search advertisement is a cost-efficient way of advertising, site-targeted advertisement provides a quicker alternative to expose the ad to a mass population at a higher expense. This paper studies a mixed strategy of optimization by combining these mechanisms to exploit their corresponding advantages. We set up a general model to find optimal starting and ending times for both methods. Closed-form solutions are calculated for two applications: (1) Advertising of perishable information with click-based revenue only; and (2) Site-targeted advertisement first and keyword search advertisement last. Comparative static analysis provides an analysis of properties of each application. We also develop a computational experiment based on Google AdWords to illustrate the application of the model.