A marketing funnel is a conceptual framework that outlines the process or journey a potential customer takes from their first interaction with a brand to a defined conversion point. The funnel is typically segmented into four main stages:

: The potential customer becomes aware of a product, service, or brand.

: The prospect begins to show interest and seeks more information.

: A person develops a genuine interest in the product or service, considering it as a solution to their need or problem.

: After purchasing, the customer becomes a promoter or advocate for the brand, product, or service, sharing their positive experience with others.

By breaking down the customer journey into distinct stages, businesses can more effectively tailor their marketing strategies and communication. Each stage requires a different approach, messaging, and type of content. Understanding the nuances of each stage allows marketers to nurture prospects more efficiently, moving them from mere awareness to active advocacy.

A model that illustrates the stages a customer goes through, from awareness to advocacy. It guides businesses in tailoring strategies for each phase of the customer journey.

Marketing Funnel

Outbound marketing, in the context of the modern digital world, involves methods where businesses proactively push their messages and content to a broader audience without the audience's active search. This contrasts with inbound marketing, where customers find the business through their search efforts. Digital examples of outbound marketing include:

: Visual advertisements placed on websites, apps, or social media platforms.

: Mass email campaigns sent to a list of subscribers or potential customers.

: Paid content that appears on users' social media feeds, even if they don't follow the brand.

Outbound marketing plays a crucial role in reaching a wider audience and raising brand awareness. While inbound methods wait for potential customers to take the first step, outbound marketing actively seeks them out. In the digital age, with the right targeting, it can be incredibly precise, ensuring that messages reach the most relevant audience segments.

When combined with inbound strategies, outbound marketing can ensure a comprehensive digital presence, capturing both active searchers and potential customers who may not yet know they need a product or service.

Marketing methods where companies push their messages to a digital audience. Examples include display ads, email blasts, and sponsored social media posts.

Outbound Marketing

UTM parameters are specific tags added to a URL to track the source, medium, campaign, content, and term information for digital marketing efforts. They provide detailed insights when analyzed through website analytics tools.

With UTM parameters, marketers can understand precisely where their traffic is coming from and which campaigns are most effective, allowing for better decision-making and optimization.

Tags added to a URL to track the effectiveness of campaigns and content promotions, helping marketers understand the source of website traffic and user behaviors.

UTM Parameters

ROI measures the profitability of an investment. It's calculated by dividing total revenue by the total cost of investments. ROI is often substituted for ROAS in digital marketing.

ROI helps businesses evaluate the effectiveness and profitability of their investments, ensuring that resources are allocated to the most impactful initiatives.

A measure of the profitability of an investment. For marketing, it’s the net profit from a campaign divided by the costs of that campaign.

ROI (Return on Investment)

CTR is the ratio of users who click on a specific link, ad, or call to action to the number of total users who viewed that content. It's expressed as a percentage.

A higher CTR indicates that a greater proportion of viewers found the content compelling enough to click on. It provides insights into the effectiveness of headlines, ad copy, or other call-to-action elements.

The percentage of people who click on an element (like an ad or a link) compared to the total number who viewed it.

CTR (Click Through Rate)

PPC is an online advertising model where advertisers pay a fee every time their ad is clicked by a user, as opposed to paying based on the number of views or impressions.

PPC allows advertisers to drive targeted traffic to their website or landing page quickly. It offers measurable results, and advertisers can set a specific budget, ensuring they only pay for genuine interest.

An online advertising model where advertisers pay each time a user clicks on one of their online ads.

PPC (Pay-Per-Click)

The conversion rate is the percentage of visitors to a website or platform who take a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form.

A high conversion rate indicates effective marketing and web design, meaning visitors find what they're looking for and are compelled to take action. It's a key metric in assessing the success and efficiency of marketing campaigns.

The percentage of visitors who take a desired action on a website, such as making a purchase or signing up for a newsletter.

Conversion Rate

CPC represents the amount an advertiser pays every time someone clicks on their online advertisement, most commonly associated with pay-per-click (PPC) advertising platforms like Google Ads.

Knowing the CPC allows advertisers to understand how much they're spending for each visitor they attract, helping them assess the cost-effectiveness and budget allocation for their campaigns.

The cost paid for each click in a pay-per-click (PPC) marketing campaign.

CPC (Cost Per Click)

CPA refers to the cost incurred by a business to acquire a customer. It is calculated by dividing the total cost of a campaign or effort by the number of customers acquired as a result.

Understanding CPA helps businesses measure the effectiveness and profitability of their marketing campaigns. A lower CPA indicates a more cost-effective campaign.

A metric that represents the cost to acquire a customer. It's calculated by dividing the total cost of a campaign by the number of conversions (acquisitions).

CPA (Cost Per Acquisition)

Inbound marketing focuses on creating valuable content tailored to the needs and interests of potential customers, drawing them to a company's website. It contrasts with traditional "outbound" methods like cold calling or direct mail.

Inbound marketing helps businesses build meaningful relationships with their audience, positioning them as helpful and trustworthy. It often results in higher engagement, increased trust, and long-term customer loyalty.

A strategy that focuses on attracting customers through content and interactions that are relevant and helpful, rather than interruptive.

Inbound Marketing

Affiliate marketing is a performance-based advertising strategy in which a company rewards third-party partners, known as affiliates, for generating traffic or sales through the affiliate's marketing efforts. Affiliates promote the company's products or services and earn a commission for every sale, click, or lead they bring in.

Affiliate marketing offers businesses a cost-effective way to drive traffic and sales since they only pay for actual conversions. For affiliates, it provides an opportunity to earn revenue by promoting products or services they believe in.

A type of performance-based marketing where businesses reward affiliates (partners) for driving traffic or sales through the affiliate's marketing efforts.

Affiliate Marketing

A lead magnet is an incentive, such as a free e-book, webinar, or trial, offered to potential customers in exchange for their contact information, usually their email address.

Lead magnets allow businesses to grow their email list, nurture potential customers, and move them down the marekting funnel. They provide value upfront, fostering trust and engagement with the audience.

An incentive, such as a free e-book or webinar, offered to potential buyers in exchange for their contact information.

Lead Magnet

A landing page is a dedicated web page created specifically for a marketing or advertising campaign. It's where visitors "land" after clicking on a link in an email, ad, or other digital locations.

Landing pages are designed with a single focus or goal, known as a call to action (CTA), making them a critical tool in achieving higher conversion rates for campaigns.

A web page designed specifically to capture leads or get visitors to take a specific action.

Landing Page

MOFU represents the stage between the top and bottom of the customer's journey. At this phase, potential customers are evaluating different solutions and considering their options.

MOFU is essential because it's the stage where businesses can nurture and educate potential customers, addressing their concerns and showcasing the unique value of their offerings.

The stage between TOFU and BOFU where potential customers are considering their options. Content here might address specific needs or comparisons.

MOFU (Middle of the Funnel)

BOFU refers to the final stages of the customer's journey, where they are closest to making a purchase, signing up, or any other conversion action. It's where prospects have moved from awareness to consideration and are now ready to decide.

Understanding and optimizing for BOFU is crucial because it represents the stage where prospects are most likely to convert. Effective BOFU strategies can significantly increase conversion rates and sales for a business.

Refers to the stage in a buyer's journey where they are ready to convert, such as making a purchase. Marketing efforts here are typically more direct and product-focused.

BOFU (Bottom of the Funnel)

TOFU refers to the earliest stage of the customer's journey, where potential customers are just becoming aware of a problem or need they have.

Effective TOFU strategies ensure that a brand or product is the first thing potential customers think of when they recognize a need. It's the starting point for guiding prospects through the marketing funnel.

Refers to the initial stage in the buyer's journey. It's about creating awareness and attracting potential customers. Content here might be more general and informational.

Digital Marketing Glossary