Where Tech Companies Fall in the Purchase Funnel
19 Aug 2015I’m talking to a bunch of sales guys and they start to mention how the big boys in tech (google search, facebook, yahoo, youtube, twitter, etc) all control varying amounts of marketing dollars in the Purchase Funnel.
The what?
You know, AIDA:
Dropped right after ABC (Always Be Closing) in Glengarry Glen Ross, AIDA is a very popular acronym used in marketing to describe to Purchase Funnel.
Wikipedia:
The purchase funnel, or purchasing funnel, is a consumer focused marketing model which illustrates the theoretical customer journey towards the purchase of a product or service.
All companies go across the funnel to some degree. But from a consumer perspective, some have more sway than others.
Eg. “Generic search” on Google (searching for “vacation ideas”) is upper funnel and in the awareness/interest stage. While a search term that is showing intent to purchase, eg. “netflix coupon code”, is at the bottom in action.
I’ve gone ahead and placed the tech companies where I think they have the most mind share for that particular stage of the funnel.
Ad Exchange works across all parts
FB & Google both have their own “Ad Exchange” platforms that run all the way up from upper funnel brand to lower funnel, algorithmic, “direct response” ad solutions.
Personal Takeaways
- Social Media raises Awareness.
- I don’t know what to do about Interest.
- Search shows desire.
- Action is usually the marketplace that allows a purchase to happen. Although, I’m being told this is where Google Search is positioned.
Apparently, there is a simplified model that collapses Interest into Desire, and is called CAB:
- Cognition (Awareness or learning)
- Affect (Feeling, interest or desire)
- Behavior (Action)
But we’re going to stick with the classic.
Still to do
- Retention Loop: We’ll save this for another post.