Understanding Marketing Funnels: Origin and Evolution

Wednesday, May 08, 2024

Omar's Marketing Blog/Understanding Marketing Funnels: Origin and Evolution

A marketing funnel is a conceptual model that illustrates the journey potential customers go through, from first becoming aware of a brand to making a purchase and beyond. It's used to guide marketing strategies, highlighting different stages like Awareness, Interest, Decision, and Action—often abbreviated as AIDA.

The History of Marketing Funnels

The marketing funnel concept has roots that trace back to 1898 when E. St. Elmo Lewis, an American advertising advocate, developed a model which outlined the steps a seller must take to attract and retain customers. This model was originally intended to improve sales processes and included the phases of Attention, Interest, Desire, and Action (AIDA). This structure laid the groundwork for what would evolve into the modern marketing funnel.

​Over the decades, this funnel has been refined and expanded but the core idea remains the same—guiding potential customers through a series of stages that culminate in a purchase. In the mid-20th century, the funnel model began to be applied not just in sales but also in marketing, reflecting a broader understanding of how advertising and customer engagement lead to sales.

Pioneers of the Marketing Funnel

E. St. Elmo Lewis is credited with the creation of the AIDA model, which is the earliest form of the marketing funnel. His work primarily focused on optimizing sales techniques, which inadvertently set the foundation for the marketing funnels used today.

William W. Townsend later adapted Lewis’s AIDA model into what he called the DRIP model—Differentiate, Remind, Inform, and Persuade—in the 1920s. Townsend’s adaptation highlighted the importance of differentiating a product from competitors and keeping it in the minds of consumers, which are still key strategies in today’s digital marketing landscapes.

​As marketing evolved with advancements in technology and media, so did the funnel model. Neil Borden, who coined the term "Marketing Mix," and Jerome McCarthy, who introduced the concept of the 4Ps (Product, Price, Place, Promotion), both contributed to expanding the scope of how the marketing funnel could be applied, integrating it with other marketing theories and practices.

Digital Age and the Evolution of Funnels

With the rise of the internet and digital marketing, the traditional marketing funnel has transformed. The new model reflects the complex web of interactions that modern consumers engage with across various digital platforms before making a purchase. This has led to the creation of more sophisticated models like the "conversion funnel," which includes layers such as post-purchase evaluation and re-engagement.

​Today, thinkers like Seth Godin have introduced concepts like "Permission Marketing," which adds a layer of consumer consent into the funnel, emphasizing the importance of engaging customers in ways that respect their privacy and preferences.

Conclusion

The marketing funnel has come a long way since its inception in the late 19th century. From simple sales models to complex digital marketing strategies, it remains a fundamental concept in understanding customer engagement and improving marketing strategies. As markets continue to evolve, so too will the models we use to understand consumer behavior, ensuring that the marketing funnel will remain a central concept in the business strategy.

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Hi, I Am Omar Farooq

Funnel Builder

Omar Farooq is a certified funnel strategist and seasoned digital marketer, educated through Russell Brunson's Funnel Builder course.

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