Our retargeting campaign tanked after we cut the budget by 40%
Back in March we decided to trim our retargeting spend from $8,000 a month down to $4,800 to free up cash for a new product launch. Within two weeks our cost per click jumped from $0.85 to $1.60 and the click through rate dropped by half. The worst part was that our return on ad spend fell from 3.2 down to 1.1, and we were burning money just to keep our brand in front of people who already knew us. I figured the algorithm would self-correct, but after three weeks of flat results I turned the budget back up and it took another ten days to recover. What I learned is that retargeting has a floor, and going below it just lets your competitors swoop in on your warm audience. Has anyone else seen this same cliff effect when cutting retargeting spend, and did you find a smarter way to scale back without losing the whole funnel?