Ad Budget Calculator
Prospecting against retargeting, honestly.
Revenue from this budget
$39,360
3.28× blended ROAS
Retargeting's 6.50× is not evidence it is a better channel — it converts people prospecting already found. Shifting budget toward it raises blended ROAS and shrinks the business, because the audience it retargets stops being replenished.
How the Ad Budget Calculator works
Retargeting's spectacular ROAS is not evidence it is a better channel — it converts people prospecting already found. Shifting budget toward it raises blended ROAS and shrinks the business, because the audience it retargets stops being replenished.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How should I split budget between prospecting and retargeting?
Retargeting is capped by the audience prospecting creates, so it cannot absorb much budget without frequency problems. Most ecommerce accounts land between 70/30 and 85/15 in favour of prospecting.
Why does retargeting show such high ROAS?
Because it advertises to people already in your funnel. Much of that revenue would have arrived anyway, which means the reported return substantially overstates the incremental one.
How do I test incrementality?
Hold out a portion of the retargeting audience and compare conversion. Most brands that run this test find retargeting is real but worth considerably less than reported.
What happens if I over-invest in retargeting?
Blended ROAS improves and revenue falls, because the top of the funnel stops being fed. It is one of the few ways to make the dashboard look better while the business gets smaller.