The 5 Most Common Forecasting Fails

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What is Revenue Forecasting?

Forecasting is the process of predicting the expected revenue to be recognized for a certain time period. Typically this is done for the enterprise, by region, by team, by seller and by product. It requires the pipeline and revenue streams to be combined into a single view. Simply put: Forecast = Weighted Pipeline + Recognized Revenue. Enter the era of complexity driven by many channels and products. Media Companies, who we’ll broadly define as anyone selling advertising solutions, are faced with forecasting challenges that didn’t exist five and ten years ago. A typical digital publisher must combine their pipeline with multiple revenue streams across Insertion Orders, Programmatic Guaranteed, Private Marketplaces and Open Exchange. Audio and Broadcast companies face similar challenges needing to combine both linear formats and digital revenue streams. Out of Home companies do as well. Often the forecast is compared to a revenue target such as a goal, quota or budget for the time period. Making this more complex is media companies have specialist teams who often focus on a specific product or set of products in an overlay type role. They need to produce forecasts similar to direct salespeople without double counting the revenue when rolled up for the organization.

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