Cutting prospecting killed retargeting
A Kozhikode home décor store saw retargeting ROAS of 8 and prospecting ROAS of 2, so it moved almost all budget to retargeting.
For two weeks results looked great. Then retargeting audiences shrank, frequency soared and total sales fell by a third.
Restoring a 70/30 split between prospecting and retargeting brought sales back; MER was the number that told the true story.
Illustrative example based on a common pattern in Kerala e-commerce accounts. Numbers rounded.
What a prospecting campaign is
Prospecting targets cold audiences: broad, interests or lookalikes, excluding existing customers and recent visitors.
Its job is to create demand and new visitors. Some of its value appears later as retargeting, brand search and direct sales.
Prospecting value = new customers + future retargeting and brand demand it creates
Prospecting vs retargeting
How they differ
| Prospecting | Retargeting |
|---|---|
| Cold, new people | Warm visitors and engagers |
| Higher cost per result | Lower cost per result |
| Creates demand | Captures existing demand |
| Most of the budget (often 60–80%) | Smaller share (often 10–30%) |
How experienced marketers use Prospecting campaign
1. Growing a new brand
Without prospecting, there is nobody to retarget.
2. Launching a new product or course
Reach new audiences with education and offers.
3. Feeding the funnel
Keep retargeting audiences fresh and large enough.
What good looks like
| Business type | Starting rule | Why |
|---|---|---|
| Share of budget | 60–80% | Starting rule for most growing businesses. |
| New customer share | Track monthly | Exclude customers to keep it honest. |
| Judging window | 2–4 weeks | Longer for long sales cycles. |
When the number lies
- Last-click undervalues it
- Prospecting starts journeys that other channels finish.
- Leaky exclusions
- Without customer exclusions, prospecting takes credit for existing buyers.
Mistakes to avoid
Judging prospecting on retargeting benchmarks
Cutting the campaigns that feed growth.
No exclusions
Spending prospecting budget on existing customers.
Hard-sell creative to cold people
Low engagement and high costs.
Related terms
Questions people ask about a prospecting campaign
What is a prospecting campaign?
An ad campaign aimed at people who don’t know your business yet, to bring in new customers.
How much budget should go to prospecting?
Commonly 60–80% for growing businesses, with the rest for retargeting and retention.
Why is prospecting ROAS lower?
Cold audiences need more convincing, and some of the value shows up later in other channels.
Should prospecting exclude past customers?
Yes, so you measure and pay for genuinely new customers.
Put it into practice
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