Ask Why does showing an ad to people who have never heard of you cost so much more than showing it to people who already visited your page?

[Newman]

When you show an ad to people who have never heard of your business, you are doing cold outreach. They do not know you, so they are less likely to click, and low click rates make the platform charge you more because it sees your ad as less relevant. But when you show an ad to someone who already visited your page, that is called retargeting. They already showed interest, so they are more likely to click and buy, which lowers your cost. Platforms reward ads that perform well by charging less per click. Does this mean small businesses with limited budgets should focus mostly on retargeting instead of cold audiences?