Why Every Business Needs an Advertising Funnel (and what it actually does)

If you’re running a business and spending money on ads without a clear strategy, you might as well be throwing money into the wind and hoping it lands in your bank account. That’s where an advertising funnel comes in - because marketing isn’t just about showing up; it’s about showing up with the right messaging, to the right people, at the right time.

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What is an advertising funnel?

Think of an advertising funnel like dating. You wouldn’t walk up to a stranger and ask them to marry you, right? (At least, we hope not.) Instead, there’s a process - you introduce yourself, build a connection, and over time, if things go well, you make a commitment.

Marketing works exactly the same way. An advertising funnel is a structured approach to guiding potential customers from not knowing you exist to becoming loyal, paying customers.

Every advertising funnel is broken into four stages, and each customer is "grouped" into a specific stage based on where they are on the customer journey.

Stage 1. Awareness

This is the first point of contact. People are discovering your brand for the first time, often through social media, blog posts, ads, or word of mouth. The goal here is simple - get on their radar with valuable content, an eye-catching ad, or an engaging message that piques their curiosity.

Think of this as your first impression! Avoid a hard sell—this is your chance to share your brand’s story and what makes it unique. For example, if you sell athletic shoes, what sets you apart? Maybe your shoes are crafted from 100% recycled materials, designed for maximum performance, or backed by years of innovation. Highlight your unique selling proposition (USP) to spark curiosity and connect with your audience.

Your first ad should focus on storytelling, not selling - introduce your brand, build intrigue, and make users want to learn more. Keep in mind that your audience will be the largest and broadest in this stage, which is okay - as you move down in the funnel, your target groups will become more and more specific and uninterested users will drop off.

Stage 2. Consideration

Now, let’s say a user was intrigued by your ad, clicked through, and browsed your women’s shoes category page. That means they’ve officially moved into the Consideration stage - they're actively engaging with your brand.

While this example focuses on e-commerce, engagement can take many forms, like visiting your blog, following you on social media, or downloading a free resource. At this point, you're narrowing your audience, filtering out those who showed initial interest but aren’t truly engaged.

Now, it’s time to take your messaging a step deeper. You can shift focus more toward your product or service and start personalizing your ads. For example, if a user browsed women’s hiking boots, you could retarget them with a collection or carousel ad showcasing your top women's hiking boot styles - keeping your brand top of mind while aligning with their interests.

Stage 3. Conversion

This is the action stage, where interested users convert into actual customers. Whether it’s making a purchase, booking a call, signing up for a service, or filling out a form, this step is crucial - so your funnel should make the process as seamless as possible. That means clear CTAs (calls-to-action), a frictionless checkout, and a smooth user experience.

At this point, your messaging should be the strongest and most direct - think "Buy Now," "Book Your Call," or "Sign Up Today." Since these users have already shown high intent, now is the time to encourage them to take that final step.

In our example, this is the perfect moment to retarget users with a carousel ad featuring the items they left in their cart, reminding them to complete their purchase.

Stage 4. Loyalty

The journey doesn’t stop at the purchase - a great funnel nurtures customers beyond the sale, turning one-time buyers into loyal fans. The Loyalty stage is also commonly known as the "Care" stage, where you care for your customers after the conversion.

For example, if someone buys a pair of your hiking shoes, follow up with a thank-you email, tips on breaking them in, or recommendations for complementary gear. Keep them engaged with exclusive offers, early access to new styles, or a loyalty program. And this doesn't need to be an ad, but is often seen as an email!

Keep in mind that the Loyalty stage isn’t relevant for every business. While it’s highly valuable for e-commerce, some industries, like wedding venues, naturally have fewer repeat customers.

However, even in these cases, loyalty can take a different form, such as referrals, testimonials, or word-of-mouth recommendations. The key is to identify how your business can continue to provide value and stay top of mind, even if repeat purchases aren’t common.

Why does my business need a funnel?

Keep in mind that an advertising funnel applies to every type of business. While we’ve used e-commerce as an example, the principles remain the same across all industries!

Right Message, Right People, Right Time.

Ads aren’t just about getting in front of people; they’re about getting in front of the right people with the right message at the right time. A funnel helps you do exactly that. Instead of showing a sales pitch to someone who’s never heard of you, you introduce them gently - maybe with a helpful blog, a freebie, or an engaging video. By the time they see your offer, they’re already interested.

Better ROI (Which Means Less Wasted Ad Spend!)

Without a funnel, you might be dumping money into ads that don’t convert. A funnel ensures you’re nurturing leads before expecting them to buy, making your ad dollars work harder and smarter.

Builds Trust

People buy from brands they trust. A funnel allows you to educate, entertain, and engage before asking for the sale. This builds credibility and makes people more likely to choose you over competitors.

Personalization

Retargeting ads can be highly personalized based on user behavior. For example, if a user viewed a specific product on your website, you can retarget them with ads for that exact product, increasing relevance and their chance of converting.

how do i get started?

1. Define Your Ideal Audience & The Customer Journey

Before you start running ads, it’s crucial to identify your ideal audience and map out their customer journey at each stage of the funnel. This ensures your messaging, targeting, and ad strategy align with their needs and behaviors, leading to higher engagement and conversions.

A great way to do this is by developing a Buyer Persona - a detailed profile of your ideal customer. This should include:

• Demographics (age, gender, location, income level)

• Interests & Behaviors (shopping habits, social media usage, pain points)

• Goals & Motivations (what drives their purchasing decisions?)

• Challenges & Objections (what might hold them back from buying?)
  

One of my favorite tips is to give your buyer persona a name and think of them as a real person. This makes it easier to craft messaging, creatives, and offers that truly resonate.

For example, instead of just targeting “women who love hiking,” imagine "Sarah"—a 35-year-old adventure enthusiast who values durability and sustainability in her gear, with two dogs who has a good amount of expendable income. When creating ads, ask yourself: Would this catch Sarah's attention? Would this ad speak to her needs and interests?

By personalizing your persona, you keep your marketing focused, relatable, and customer-centric.

2. Choose the Right Advertising Platforms

Not all marketing platforms are created equal - each one caters to different audiences, content formats, and user behaviors. Choosing the right platforms ensures your ads reach the right people in the most effective way. For example, the content and type of messaging you will post on Pinterest is going to look different from Facebook/Instagram, which will also be different from Google. Think about what you see and what works well on the various platforms and what will work best for your campaign and the target groups you want tor reach.

It’s tempting to be everywhere at once, but spreading yourself too thin can lead to ineffective campaigns and wasted budget. Instead, start with one or two platforms, master them, and gradually expand as you gain insights and optimize performance. Doing a few things well is far better than trying to do everything at once!

Another powerful strategy - if you have the skillset - is cross-channel advertising, which allows you to engage users at multiple touchpoints throughout their journey. For example, you might run low-cost Google Search ads to drive high-intent traffic to your website, making it an effective strategy for the Awareness stage. Then, as users browse and show interest, you can retarget them on Facebook and Instagram with more personalized ads for the Consideration and Conversion stages.

By strategically combining platforms, you create a seamless experience that keeps your brand top of mind and guides potential customers toward making a purchase.

3. Start with Awareness

When you're just getting started, focus on building awareness. It can be tempting to dive into the entire funnel and set up campaigns for every stage, but at the beginning, your priority should be to introduce your brand to as many people as possible.

Create an Awareness campaign to reach a wide audience, showcasing what your business is about, your values, and what sets you apart. This is the foundation for everything else - without awareness, your conversion and consideration campaigns won’t have a strong audience to target.

Let the awareness campaigns run for a while to gather data, build an audience, and establish your brand presence. Once you've nurtured a sizable group of people who have shown interest, you can then move on to retargeting those users with more specific messaging in your consideration and conversion campaigns.

Remember: Building awareness first creates the momentum needed for the rest of your funnel to work effectively.

4. Implement Tracking & Analytics to Measure Results

Alright, I know - setting up tracking and analytics can feel like a pain in the a**. But trust me, it’s absolutely essential if you want your funnel campaigns to be successful. Without proper tracking, you're essentially flying blind, hoping your ads are working. Spoiler alert: they probably won’t be.

The best tools for this are Google Tag Manager and Google Analytics 4. These will allow you to track user behavior, measure campaign performance, and gather valuable data that helps you optimize every stage of your funnel.

Now, if you’re not experienced with these tools (or don’t have a developer on hand), I am begging you, please don’t try to do this yourself - you might end up causing more problems than solutions. If you need help setting up tracking, feel free to reach out to us. We’ve got you covered and can ensure everything’s set up properly so your campaigns can deliver real results!

5. Optimize, Optimize, Optimize!

If you want your campaigns to keep performing at their best, you have to optimize regularly. Otherwise, you’ll end up leaving money on the table and losing out on opportunities. Optimization isn’t a one-and-done thing - it’s an ongoing process.

You'll need to adjust budgets, experiment with new target groups, and update creatives or messaging to keep your ads fresh and relevant. Even if something is working perfectly now, in six months, the same approach might not deliver the same results. Trends, consumer behaviors, and platform algorithms change, so continuous optimization is key to staying ahead.

That said, don’t go overboard. Over-optimizing or making changes too frequently can mess with the learning phase, which can slow down the performance of your ads. Give your campaigns time to gather data and find what works, then make adjustments gradually.

In short: Optimize when necessary, but don’t tinker too much. Find the balance between making improvements and letting the system learn!

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Do you need help setting up an effective advertising funnel?

That is exactly what we do here at Impuls Studio. We can either do everything for you, or if you'd prefer we can consult and teach your whole team how to do it themselves. Book a call with us today to see how we can partner to help boost your marketing!

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Final thoughts

An advertising funnel isn’t just a fancy marketing term - it’s a necessity for any business that wants to maximize ad results and grow sustainably. If you’re running ads without one, you’re probably leaving money on the table. But with the right strategy, you’ll be reaching the right people, with the right message, at the right time - and that’s the secret to marketing that actually works.