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by Marketing Guru (6.5k points)

When comparing performance of retargeting vs. in-market audience targeting, is there any benchmark for expected CPA or ROAS differences?

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by Marketing Guru (6.7k points)

There’s no universal benchmark since CPA and ROAS depend heavily on industry, product price, funnel stage, and audience intent. However, here’s a general breakdown of how they typically perform:

Retargeting (Remarketing)

  • CPA (Cost Per Acquisition): Usually lower. You're targeting users who’ve already interacted with your brand, they’re warmer and closer to conversion.

  • ROAS (Return on Ad Spend): Generally higher. Since these users are familiar with your product or service, the conversion likelihood is higher.

  • Best Use Case: Bottom-of-funnel campaigns. Works great for cart abandoners, site visitors, or people who’ve engaged with your ads or content.

In-Market Audience Targeting

  • CPA: Often higher. These are users actively researching similar products, but they may not know your brand yet.

  • ROAS: Tends to be moderate. They're in discovery mode, so conversion rates aren’t as strong as retargeted users.

  • Best Use Case: Mid-funnel or prospecting. Good for introducing your brand to potential new customers.

Realistic Performance Ranges

From aggregated advertiser data across various platforms:

  • Retargeting CPA often ranges between $5 to $40, with ROAS between 3x to 10x or more.

  • In-Market CPA typically falls between $25 to $100+, with ROAS ranging from 1x to 3x.

These are ballpark figures and can vary drastically depending on ad creative, landing page UX, and offer strength.

What to Know Before Comparing

  • Split test both audiences. Keep retargeting and in-market in separate campaigns or ad sets. Don’t blend them — it muddies the data.

  • Use tailored creatives. Retargeting works well with urgency or offer-driven creatives. In-market targeting benefits from credibility-focused ads or testimonials.

  • Expect different goals. Retargeting drives conversions. In-market builds your funnel with new visitors.

Rough estimate? Many brands see 2–5x better ROAS and 30–60% lower CPA in retargeting vs in-market. But it really depends on your product, creative, and funnel.

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