Glossary

Marketing Funnel

By
Jademi Jude
00
Minutes read
June 26, 2025

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Marketing Funnel Definition

The marketing funnel is a strategic model that illustrates the progressive steps individuals take from first discovering a product or brand to becoming paying customers—and beyond. Often visualized as an inverted pyramid, the funnel helps marketers structure campaigns for each stage: Awareness, Interest, Consideration, Conversion, and Retention. It reflects how audiences narrow down through the buying process, with fewer prospects advancing at each stage.

How Marketing Funnel Works

  • Top of Funnel (ToFu):


    • Goal: Build awareness and attract a broad audience

    • Tactics: Display ads, social media, SEO content, influencer marketing

  • Middle of Funnel (MoFu):


    • Goal: Generate interest and nurture consideration

    • Tactics: Email marketing, retargeting ads, product demos, case studies

  • Bottom of Funnel (BoFu):


    • Goal: Drive conversions and purchase decisions

    • Tactics: Special offers, free trials, direct calls-to-action, remarketing

  • Post-Purchase (Optional Retention Stage):


    • Goal: Foster loyalty, upsell, and referrals

    • Tactics: Loyalty programs, email follow-ups, exclusive content

  • Tools like CRM platforms, ad managers, and analytics platforms track performance at each stage.

  • Funnels can be automated (via marketing platforms) or manually structured in campaigns.

Example of Marketing Funnel

A software company designs its marketing funnel as follows:

  • Top of Funnel: Runs LinkedIn ads to introduce their solution to IT managers

  • Middle of Funnel: Offers downloadable guides in exchange for email addresses

  • Bottom of Funnel: Sends personalized demos to qualified leads to close sales

  • Retention Stage: Provides customer success webinars to enhance satisfaction

Why Marketing Funnel Matters in Advertising

  • Structures campaigns to match buyer intent at each stage

  • Increases conversion rates by guiding prospects methodically

  • Optimizes resource allocation across awareness, consideration, and conversion phases

  • Supports long-term growth with loyalty and post-sale engagement

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