What does the term 'funnel' refer to in digital marketing?

The term 'funnel' in digital marketing refers to the customer journey from awareness to purchase. This concept visualizes the steps potential customers take as they move from the initial stage of learning about a brand or product (awareness) to eventually making a purchase (conversion).

At the top of the funnel, potential customers may be unaware of the brand or product. As they engage with content, advertisements, or other marketing efforts, they become more informed and interested. As they progress down the funnel, they evaluate their options, compare products, and ultimately decide to purchase, which represents a conversion.

Understanding the funnel is crucial for marketers as it helps them tailor their strategies to effectively guide prospects through each stage, optimizing engagement and increasing the likelihood of conversions while addressing potential drop-off points in the journey.