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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

Inputs (CTC definitions).178

  • 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

MetricDefinitionDrives
Evergreen share% of ads running >30 dayssurvival → carry rate
Spend degradationavg 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 periodexpected spend per ad — a 65% brand needs 2–3× the ads of a 30% brand
ROAS degradationavg week-over-week efficiency change (5% = winners age well)value of new ads over time

Three levers.

  1. 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
  2. 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
  3. 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

  1. Total demand — run the formula with the 60-day carry rate.
  2. 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.
  3. Assign products — follow the moment, or for evergreen use the product matrix and weighting.
  4. Angles × treatments — format split (video/static/UGC) per angle.
  5. Assign producers and counts; keep ads flowing into the account.

Disagreements / caveats

See also

Footnotes

  1. The Math Behind Creative Hits (With Real Spend Data) @ 07:34 — Adrianne (CTC) ↩ ↩2

  2. The Math Behind Creative Hits (With Real Spend Data) @ 11:45 — Adrianne (CTC) ↩ ↩2

  3. The Math Behind Creative Hits (With Real Spend Data) @ 17:43 — Adrianne (CTC) ↩

  4. The Math Behind Creative Hits (With Real Spend Data) @ 18:28 — Adrianne (CTC) ↩ ↩2

  5. The Math Behind Creative Hits (With Real Spend Data) @ 19:16 — Adrianne (CTC) ↩ ↩2

  6. The Math Behind Creative Hits (With Real Spend Data) @ 20:12 — Adrianne (CTC) ↩ ↩2

  7. The Math Behind Creative Hits (With Real Spend Data) @ 08:21 — Adrianne (CTC) ↩

  8. The Math Behind Creative Hits (With Real Spend Data) @ 10:02 — Adrianne (CTC) ↩

  9. The Math Behind Creative Hits (With Real Spend Data) @ 10:54 — Adrianne (CTC) ↩

  10. The Math Behind Creative Hits (With Real Spend Data) @ 13:33 — Adrianne (CTC) ↩

  11. The Math Behind Creative Hits (With Real Spend Data) @ 14:21 — Adrianne (CTC) ↩

  12. The Math Behind Creative Hits (With Real Spend Data) @ 16:04 — Adrianne (CTC) ↩

  13. The Math Behind Creative Hits (With Real Spend Data) @ 16:56 — Adrianne (CTC) ↩

  14. The Math Behind Creative Hits (With Real Spend Data) @ 22:03 — Adrianne (CTC) ↩

  15. The Math Behind Creative Hits (With Real Spend Data) @ 23:38 — Adrianne (CTC) ↩

  16. The Math Behind Creative Hits (With Real Spend Data) @ 24:31 — Adrianne (CTC) ↩