Ad Decay Rate to calculate ad fatigue

[justauser]

I stumbled upon this post: https://www.linkedin.com/posts/sven...ore-fatigue-activity-7429903132748308480-ga35

Calculate your ad's decay rate with one Excel formula:
=1-(current_spend/peak_spend)^(1/days_since_peak)

It feels smart but how do you do this if you keep on scaling spend (and therefore pretty much all creatives' spend)? If that's the case you only start decreasing spend for a specific when you see performance dip, which means you already know they're fatiguing. Am I missing something?

 

[davamosk]

That is just a way to look at your average behavior and prepare yourself for a more efficient creative production for all kind of creatives: winners, "mehh" and losers so you can have more creatives ready before they actually start to lose spend

 

[justauser]

But how are they going to lose spend if I'm scaling?

It seems to be the formula work is spend is pretty stable.

 

[davamosk]

I guess he's assuming you are not scaling continuously?? Sven is great guy, just ask him in a comment in the post and he'll solve the question!