What are the best practices for forecasting the performance of your digital campaigns and KPIs?

1 Define your KPIs

Before you can forecast your performance, you need to define your key performance indicators (KPIs). These are the metrics that reflect your objectives and show how well your campaigns are performing. For example, if your goal is to increase brand awareness, you might use KPIs such as impressions, reach, and engagement. If your goal is to generate leads, you might use KPIs such as conversions, cost per lead, and lead quality. Choose KPIs that are relevant, measurable, and actionable for your campaigns.

3 Apply forecasting methods

Once you have your data, you can apply different forecasting methods to project your future performance. There are various methods you can use, such as regression analysis, exponential smoothing, or moving averages. Each method has its own advantages and disadvantages, depending on the type and quality of your data. You can use tools such as Excel, Google Sheets, or online calculators to perform your calculations. You can also test different scenarios and assumptions to see how they affect your forecasts.

4 Adjust for external factors

Another important factor to consider when forecasting is the impact of external factors on your performance. These are the factors that are beyond your control, such as market conditions, consumer behavior, competitor actions, or environmental events. You need to monitor these factors and adjust your forecasts accordingly. For example, if there is a sudden increase in demand for your product or service, you might need to increase your budget or target a wider audience. If there is a negative event that affects your reputation, you might need to revise your messaging or pause your campaigns.

5 Review and refine

The final step is to review and refine your forecasts regularly. Forecasting is not a one-time activity, but an ongoing process that requires constant evaluation and improvement. You need to compare your actual performance with your forecasted performance and see how close or far you are from your goals. You also need to identify the factors that caused any deviations and learn from them. You can use tools such as dashboards, reports, or feedback surveys to track and communicate your progress. You can also use your insights to optimize your campaigns and KPIs.