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What’s the difference between prospecting and retargeting campaigns?

Short answer

Prospecting campaigns reach people who do not know you yet, through search, interests or lookalike audiences. Retargeting campaigns reach people who already visited your site or engaged with your ads. Prospecting fills the funnel and costs more per lead. Retargeting converts warm interest and costs less, but it depends on prospecting to grow.

In this answer
  1. 01The two side by side
  2. 02How they work together
  3. 03Keep them separate
  4. 04How to split the budget

The two side by side

Prospecting vs retargeting
Prospecting
  • Reaches new people
  • Higher cost per lead
  • Introduces the service and proof
  • Grows the pool of warm visitors
Retargeting
  • Reaches past visitors
  • Lower cost per lead
  • Answers doubts and pushes action
  • Shrinks without new visitors

How they work together

One funnel, two jobs
  1. ProspectingSearch and new audiences bring first visits
  2. RetargetingReminders bring visitors back
  3. LeadA call, form or booking

Retargeting can only reach people prospecting brought in. Cut prospecting to fund more retargeting, and the retargeting lists shrink a few weeks later.

Keep them separate

Run them as separate campaigns with their own budgets and reports. Retargeting always looks cheaper, so a blended report hides what prospecting really costs. Exclude recent converters from both.

How to split the budget

Most local businesses spend most of their budget on prospecting, usually search, and a smaller share on retargeting. The right share depends on your traffic. A site with few visitors cannot fill large retargeting lists.

Good example. A solar installer runs search ads for new buyers and a separate retargeting campaign with savings calculators for past visitors.

Bad example. A solar installer moves its whole budget into retargeting because the cost per lead looks low. Leads dry up within two months.

Read how retargeting ads work. Our PPC management reports both campaigns separately.

Keep reading

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