Scaling retargeting vs scaling prospecting

Scaling retargeting vs scaling prospecting

Want more revenue — where does the next dollar go?

— Retargeting (warm audiences who already engaged): cheap conversions, high ROAS on paper, but the pool is tiny and saturates fast. You can't scale a small audience.
— Prospecting (cold, finding new people): lower ROAS, but it's the only thing that grows the funnel that feeds retargeting.

Where to push:
— Retargeting frequency under 3 and still converting → fine, but don't expect it to scale far.
— Want real growth → spend goes to prospecting, period. Retargeting just harvests what prospecting plants.

Risk: dumping budget into retargeting looks amazing in-platform but it's mostly people who'd convert anyway. Inflated ROAS, no real lift.

Shift the next budget increase to prospecting and judge by total revenue, not ad-set ROAS.