The marketing funnel is a visual representation of the customer journey, from their initial awareness of your brand to their final purchase decision. It helps organisations understand the different stages potential customers (and, if you're a charity, donors) go through so they can tailor their marketing efforts (and ads in particular) accordingly.
A blast from the past: the origins of the marketing funnel
The concept of the marketing funnel dates back to 1898 when Elias St. Elmo Lewis developed the "AIDA" model, which stands for Awareness, Interest, Desire, and Action. This model was the foundation for the modern marketing funnel, which has evolved over the years to include more stages and nuances.
The AIDA model itself was actually devised as a way to set out long-form advertising copy in the pages of newspapers. Up at the top, above-the-fold, was a section focused purely on introducing the advertised product or service to the reader. The copy then changed in a bid to hold-on to people's initial attention and draw them in by stoking interest. Next, the copy was all about making people want whatever it was (think "your neighbour has one, don't get left out, it's important to keep-up with the Jones's" type messaging, and "just picture how much more confident you'll feel wearing this"). Then came the really salesy copy, the bit designed to drive action "hurry, order yours before they're gone" and "get a discount coupon when you buy two or more" - incentives that would nudge people across the line.
Conceptually, you can still see it in use today - we often build landing pages in a way that follows this kind of structure.
The three pillars of modern promotional marketing
While traditional funnels often have multiple stages, modern advertising campaigns tend to focus on a simplified, three-stage approach: Awareness, Consideration, and Conversion.
Awareness. This initial stage focuses on grabbing the attention of your target audience and making them aware of your brand, product, or cause. Think of it as casting a wide net to reach as many people as possible.
Consideration. Once you've captured attention, the consideration stage is about nurturing interest and providing valuable information to help people evaluate your offerings. Here, you're building trust and positioning yourself as a solution to their needs.
Conversion. This final stage is the ultimate goal: turning interested individuals into paying customers or donors. It involves encouraging action and making it easy for them to complete a purchase, sign up for a service, or donate to your cause.
Tailoring your content for optimal results at each stage of the marketing funnel
Each stage of this simplified funnel requires a different approach to content creation and ad targeting:
Awareness stage (also referred to as 'Top-of-Funnel') - focus on broad reach and impactful messaging. Utilise eye-catching visuals and compelling ad copy to attract attention and stimulate initial interest. Leverage social media campaigns, display advertising, and engaging video content to introduce your brand to the widest possible audience;
Consideration stage (also referred to as 'Mid-Funnel) - provide valuable content that addresses your audience's needs and pain points. Offer ebooks, webinars, blog posts, and case studies that showcase your expertise and build credibility. Utilise targeted advertising to reach individuals who have shown initial interest in your brand;
Conversion stage (also referred to as 'Bottom-of-Funnel) - here, your focus should be on driving action with clear calls-to-action (CTAs). Offer free trials, demos, consultations, and compelling incentives to encourage conversions. Retargeting ads can be highly effective in reminding potential customers of their interest and guiding them towards taking action.
Why this approach works
This simplified three-stage marketing funnel offers several benefits for businesses and charities alike:
Clarity and Focus. A streamlined approach helps you concentrate your efforts and resources on the most critical stages of your audience's journey.
Improved Targeting. By understanding the different stages, you can tailor your messaging and ad targeting for greater impact.
Enhanced Measurement. This model makes it easier to track progress and measure the effectiveness of your campaigns at each stage.
Increased Efficiency. By optimising each stage for relevant events and conversions, you can make your ad spend go further and improve your overall marketing ROI.
Keep in mind that there's an attrition rate between each stage, but that's a good thing.
Let's say you run an ad campaign that reaches 100,000 people in a given audience, promoting your £750 e-bike. The reality is that only a small fraction of them will be interested in your product - they may look like the ideal customer in your targeting, but for all you know some could have recently had an accident resulting in broken limbs, or lost their jobs, so the idea of buying an e-bike just isn't on their radar. That's OK though, because it means that the smaller audience that does show interest can then be reached with smaller budgets in the consideration stage of your ad campaign. Similarly, not everyone who explores your e-bike on your website is going to take an action that warrants showing them bottom-of-funnel conversion ads, but, again, that's OK too because the audience of people who do have now essentially identified themselves as the most primed for action and therefore the most likely to respond to ads designed to get them over the line.
By allowing you to focus your ad budgets wisely on smaller and smaller but more motivated audiences, you can get more bang-for-your-buck, as the saying goes, by structuring your campaigns like this.
Embrace the Marketing Funnel for better ad results
Whether you're a small business or a large non-profit, understanding and implementing this three-stage marketing funnel can significantly impact your growth. By strategically crafting your content and advertising campaigns to align with each stage, you can effectively attract, engage, and convert your target audience.