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BIAnalytix Tip Summary: Using Unsold Time to Forecast Revenue

One easy technique to forecast future revenue is to price the unsold time for each program at the average rate of existing bookings for that program. This gives a fair estimate of the potential revenue based upon actual bookings. This forecast can be further refined, for example, by limiting the unsold time to the historic sellout percentage.

This specific refined type of forecast requires a final sell-out percentage to be first specified (or assumed) and consequently is not applicable for forecasting a potential sellout or oversold condition. However, it is a reasonable calculation of the potential maximum revenue from partially sold out programs. This forecast type can be used on any subdivision of the broadcast time such as Dayparts, Programs or Time of Day. It is most accurate when the rates within the subdivision (such as the rates within one Program) do not vary substantially.

BIAnalytix is a data warehouse and business intelligence system from Decentrix which includes all the advanced tools necessary for a powerful media BI system including valuable forecasts based upon unsold time, as well as forecast comparison analysis.

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