How the 70-30 split starts budgets
Seventy per cent finds new buyers; thirty per cent closes the interested. This guide starts the split and moves it with evidence.
Reddit targeting guidance proposes a common starting point of 70 per cent of budget for prospecting and 30 per cent for retargeting, reallocated thereafter to measured CPA, ROAS and downstream quality. Within prospecting, core groups take the majority with a smaller pool reserved for testing.
Why 70-30#
Prospecting needs volume to learn; retargeting needs caps to stay efficient. The ratio funds both jobs without letting either starve: prospecting fills the pool, retargeting drains it profitably. Source: Reddit SMB targeting; scale via the scaling guide.
Core plus test pool#
Within prospecting, most spend backs proven core groups while a smaller amount tests new communities, interests, keywords, offers and angles. Reddit SMB material recommends exactly this barbell: core compounds, tests hunt. Never fund tests from retargeting; the pool metaphor breaks. Testing order: creative-first testing.
Reallocation triggers#
Move money on CPA versus target, ROAS versus floor, and lead quality scores, reviewed weekly after learning exits. Retargeting share grows as pools fill; prospecting share grows as winners emerge. Move in 10 to 20 per cent steps to avoid tripping learning. Scaling: scaling winners.
When the ratio bends#
New accounts with empty pools run heavier prospecting (90-10); mature accounts with fat pools push retargeting harder (50-50). Launches spike prospecting; evergreen settles near 70-30. The ratio serves the funnel stage, never the reverse. Funnel roles: ecommerce funnel.
Quality over CPA#
Retargeting CPA almost always beats prospecting CPA; that does not mean retargeting deserves everything. Judge pools on incremental contribution (lift) and downstream value, not raw CPA, or prospecting starves and the pool drains dry. Incrementality: conversion lift.
Putting allocation into practice#
Reset budgets to 70-30 this week with the test pool explicitly labelled, then calendar the first reallocation review for three weeks out. Labelled pools survive stakeholder raids; unlabelled testing budgets get reabsorbed into core at the first wobble.
Report pool performance separately forever: core efficiency, test hit rate, retargeting increment. Separate reporting defends the structure that produces it. Reporting: scaling winners and conversion lift.
Frequently asked questions#
What is the 70-30 split?
Seventy per cent of budget for prospecting and 30 per cent for retargeting as a starting allocation.
How is prospecting budget divided?
Majority to proven core groups, a smaller pool reserved for testing new audiences and angles.
When should the split move?
Weekly after learning exits, on CPA, ROAS and quality, in 10 to 20 per cent steps.
Does the ratio ever change?
Yes: new accounts run heavier prospecting, mature pools justify more retargeting.
Should retargeting win on CPA alone?
No. Judge on incremental contribution and downstream value or prospecting starves.
What protects the test pool?
Explicit labelling plus separate performance reporting, reviewed on schedule.
Read more on this topic#
The Reddit Ads Hub
Free tools, format guides and live news for every Reddit Ads format.
Open the hubScaling winners: pods, bids and gradual budgets
Adjacent relevance with gradual budgets.
Read the entryReddit Pro plus paid: promoting organic winners
Discovery, validation, promotion, loop.
Read the entryReddit local ads: geo plus city subreddits
Global platform aimed at a postcode.
Read the entryWant Reddit Ads managed properly?
folkfox runs Reddit campaigns that respect the thread: native creative, separated ad groups and honest reporting. Talk to us before your next test.