Ad sales teams are often unsure how to use inventory forecasting tools. For some, their manual forecast process works well enough.  Perhaps they tried using other forecasting tools in the past, and got bad results.  Manual forecasting may work for today, but with more highly targeted campaigns and higher sell through rates, it breaks down.  Forecasting tools can relieve the pressure, and produce more accurate results, if used correctly.

There are two main use cases for forecasting tools: responding to RFPs, and defining what you can sell.  The advantage of forecasting tools for RFP’s is clear.  Turnaround time is critical, and manual forecasting takes time.  Also, it’s hard to calculate inventory for campaigns with multiple targets.  With forecasting tools, you plug in the targets and get an instant answer.  The system will tell you which campaigns are competing.  With this information, locked up inventory can be freed.

Defining what you can sell is critical for planning.  But categorizing sites and ad packages in spreadsheets can be tedious. With a good ad platform, you can define categories and save forecast reports by ad size, geography, and other parameters.  Updating a report is as simple as clicking a button.  As ad packages sell out, you can refocus the sales team on the unsold inventory.

Getting an accurate forecast does not have to be difficult.  There are a few simple steps you can take.  For one, you should take an active role in forecasting.  Know how much valid history data you have: it is the basis for your forecast.  If your history is erratic, configure the tool to smooth the data out.  Some tools do this automatically, but with others you can manually select a flat, “no growth” projection.  For a short term forecast, this model is reasonable, and often preferred.

Look carefully at your forecast results.  You should be familiar enough with your network to know if the results feel right.  Are they in the right ballpark?  Does the forecast describe the expected trend?  If not, take another look at your history data and make the needed adjustments.  Remember that forecasts don’t have to be perfect.  The goal is to set an upper bound for what you can sell.  As you get more familiar with the forecasting features, your efficiency and accuracy will improve, as will your sell through rates.

Customer Testimonial

"Vertical networks are emerging as one of the most important innovations in online advertising. By pairing leading media brands with high-quality long-tail content, Adify has taken the lead in this rapidly growing market." Nicole Rousseau
Vice President of Retail Marketing
HSBC