Remarketing is highly efficient because it targets warm audiences. Prospecting is less efficient but it is the only way to grow the top of the funnel. Businesses that over-invest in remarketing and neglect prospecting eventually run out of warm audiences to remarket to.
We balance both in our Re-marketing & Display service, structuring the budget to grow and convert simultaneously.
Remarketing only works if there is a flow of new visitors entering the top of the funnel. If prospecting dries up, remarketing audiences shrink. Within weeks, remarketing frequency rises, CPCs increase and performance drops.
A balanced allocation depends on your business stage. Early-stage businesses should invest more in prospecting to build the funnel. Established businesses can shift more budget toward remarketing once awareness is strong.
| Stage | Prospecting | Remarketing |
|---|---|---|
| Early stage | 70 to 80% | 20 to 30% |
| Growth stage | 60% | 40% |
| Mature brand | 40 to 50% | 50 to 60% |
Always measure prospecting and remarketing separately. Blending the metrics hides the true performance of each. Remarketing will always show a better CPA than prospecting, which can lead to cutting prospecting too aggressively.
Remarketing shows ads to people who have already visited your site. Display ads show ads to people who match a demographic or interest profile, regardless of whether they have visited your site. Remarketing is warmer traffic; display is colder.
TPR Media operates from Level 34, 1 Eagle Street, Brisbane City QLD 4000, serving clients across Brisbane and Australia-wide.
TPR Media explains remarketing vs prospecting ads, the budget allocation framework across business stages and why measuring them separately prevents over-investing in remarketing.