How many new ads do you need per month? CTC's creative demand formula and carry rate
CTC's formula — (target spend − current spend × carry rate) ÷ expected spend per new ad — with benchmarks (70–75% of spend carries forward; whales survive 82%/retain 70%), the five "creative score" metrics that move it (evergreen share, spend degradation, top-5 concentration, zero-revenue rate, ROAS degradation), the three levers (mine old winners, make better ads by product × persona × pain × URL, carve out catalog ads) and the 5-step monthly planning workflow.
Creative demand formula and carry rate
TL;DR
- New ads needed = (target spend − current spend × carry rate) ÷ expected spend per new ad. Run it monthly, or for the whole year from a forecast.1
- Typically 70–75% of current spend carries into next month by itself, so new creative has to fill the other 25–30%. Observed range: 65–122%.2
- Same spend, different health: two brands at $200K/month on Meta might need 40 vs 200 new ads a month, depending on their creative score.3
- Pull three levers in order: mine past winners → make better ads (product × persona × pain point × URL) → run the catalog layer separately.456
Details
- Current spend — projected end-of-month spend: month-to-date plus the remaining run rate, adjusted for day-of-week pacing and planned spikes.
- Carry rate — for every ad active in the trailing 60 days, whether it survives into next month and how much of its spend it keeps.
- Expected spend per new ad — the average first-month spend of new ads, across the whale / winner / testing / dust tiers (Creative hit rate — what the spend data says and why Barry Hott calls it misleading).
Tiers carry differently. Whales have 82% survival and 70% spend retention; winners 71% survival and 90% retention. So each ad isn’t given the same carry.9 Brands that push budget onto proven winners before ordering new production carry 85–100%+ of prior spend.2
Creative score — five metrics.10111213
| Metric | Definition | Drives |
|---|---|---|
| Evergreen share | % of ads running >30 days | survival → carry rate |
| Spend degradation | avg week-over-week spend change after launch (one brand: −39%/week) | spend retention |
| Ad concentration | % of spend in top 5 ads (whale-heavy accounts carry ~59%, distributed 64–92%) | resilience; out-of-stock or lost creator rights can sink a concentrated account |
| Zero-revenue rate | % of ads with zero revenue in the period | expected spend per ad — a 65% brand needs 2–3× the ads of a 30% brand |
| ROAS degradation | avg week-over-week efficiency change (5% = winners age well) | value of new ads over time |
Three levers.
- Mine historical winners before briefing anything new: revive last year’s and the last 30 days’ top ads, re-enable paused winners, and send existing creative to new landing pages.4
- Make better ads, not just more. Each brief = product + persona + pain point + destination URL. Spread briefs across video and static formats and across distinct entity IDs.5
- Catalog layer — carve it out of the formula. Catalog ads carry at ~100% while the feed persists. They are often the highest-ROAS line and are rarely briefed. Run them broad with Advantage+ catalog as an acquisition engine, not only as retargeting. Test dynamic overlays and catalog video.614
Monthly workflow (5 steps).1516
- Total demand — run the formula with the 60-day carry rate.
- Split moments vs evergreen. Score past calendar moments by promo and LTV, size them by expected incremental spend, and don’t starve the evergreen pipeline.
- Assign products — follow the moment, or for evergreen use the product matrix and weighting.
- Angles × treatments — format split (video/static/UGC) per angle.
- Assign producers and counts; keep ads flowing into the account.
Disagreements / caveats
- The numbers come from CTC’s Statlas dataset (its own clients) and are presented as a methodology the agency sells. The tier cut-offs ($1K, $5K) are absolute, so they mean different things for small vs large spenders.
- Barry Hott argues against using any hit-rate tier as a goal; he would only use spend (Creative hit rate — what the spend data says and why Barry Hott calls it misleading).
- Compare with production capacity: a formula that asks for 200 ads still fails if the team can make 20 (Brand reality — production capacity, true creative cost and team alignment).
See also
- Creative hit rate — what the spend data says and why Barry Hott calls it misleading · Is ad fatigue real? Creative longevity vs refresh cadence · Planning Meta creative volume, budget and team
- Adrianne (Common Thread Collective)
Footnotes
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The Math Behind Creative Hits (With Real Spend Data) @ 07:34 — Adrianne (CTC) ↩ ↩2
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The Math Behind Creative Hits (With Real Spend Data) @ 11:45 — Adrianne (CTC) ↩ ↩2
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The Math Behind Creative Hits (With Real Spend Data) @ 17:43 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 18:28 — Adrianne (CTC) ↩ ↩2
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The Math Behind Creative Hits (With Real Spend Data) @ 19:16 — Adrianne (CTC) ↩ ↩2
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The Math Behind Creative Hits (With Real Spend Data) @ 20:12 — Adrianne (CTC) ↩ ↩2
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The Math Behind Creative Hits (With Real Spend Data) @ 08:21 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 10:02 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 10:54 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 13:33 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 14:21 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 16:04 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 16:56 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 22:03 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 23:38 — Adrianne (CTC) ↩
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The Math Behind Creative Hits (With Real Spend Data) @ 24:31 — Adrianne (CTC) ↩