What Part of the Funnel Is Demand Generation in Marketing?

Demand generation is a cornerstone of B2B marketing, driving interest, awareness, and engagement among target audiences. But where does demand generation fit within the marketing funnel? Spoiler: it doesn't just belong to one stage—it influences the entire buyer's journey. In this blog, we'll unpack the role of demand generation in the funnel, highlight its key tactics, and dive into how display advertising plays a pivotal role in creating demand.

Understanding The B2B Demand Generation Funnel

The B2B marketing funnel is typically divided into three primary stages:

1. Top of the Funnel (TOFU): Awareness stage where you generate interest among potential buyers.
2. Middle of the Funnel (MOFU): Consideration stage where prospects evaluate your solution against competitors.
3. Bottom of the Funnel (BOFU): Decision stage where leads are ready to convert.

B2B demand generation spans across the top and middle of the funnel—creating awareness, educating prospects, and nurturing them into high-quality leads. Unlike B2C, where impulse buys may occur, B2B demand generation addresses longer sales cycles, complex buyer journeys, and multiple decision-makers.

Demand Generation in the Top of the Funnel (TOFU)

At the TOFU stage, demand generation focuses on building brand awareness and capturing interest from your ideal customer profiles (ICPs). This is where you plant the seed—introducing your business to prospects who may not even know they need your solution.

TOFU Tactics for Demand Generation:

• Content Marketing: Thought leadership blogs, whitepapers, and guides addressing industry pain points.
• Social Media Campaigns: LinkedIn posts, Sub Reddit, Twitter or X threads, and other B2B-relevant platforms to connect with your audience.
• SEO Strategies: Optimizing for long-tail keywords to attract organic traffic from prospects researching solutions.
• Display Advertising: Eye-catching banners and programmatic ads to make a memorable first impression.

The Role of Display Advertising in B2B Demand Generation

Display advertising is a powerful tool for driving demand, especially in the TOFU and MOFU stages. With the right strategy, display ads can help you:

1. Reach Decision-Makers: Leverage programmatic platforms to target specific industries, job titles, or company sizes.
2. Build Brand Awareness: Serve ads on relevant sites where your audience spends time, ensuring your brand stays top-of-mind.
3. Retarget Prospects: Re-engage visitors who have interacted with your content or visited your website.
4. Showcase Thought Leadership: Use display ads to promote webinars, case studies, or eBooks that position your business as a trusted resource.

Examples of Display Advertising in Demand Generation:

• Audience Segmentation: Use programmatic ads targeted to (particular audience) procurement managers (who have displayed a specific action or behavior)  searching for supply chain solutions.
• Native Advertising: Sponsored content on media platforms that align with your ICP interests. You must know your audience thoroughly to test and hone on adequate inventory.
• ABM (Account-Based Marketing) Ads: Display ads targeting specific high-value accounts as part of a broader ABM strategy. Audience size needs to be significant. 

The beauty of display ads lies in their scalability. They allow you to reach highly segmented audiences with precision by leveraging advanced targeting options such as demographic filters, behavioral insights, geolocation, and contextual relevance.

Demand Generation in the Middle of the Funnel (MOFU)

Once prospects know your brand, demand generation at MOFU focuses on nurturing leads and building trust. Your goal is to deepen their engagement and guide them toward considering your solution as a viable option.

MOFU Tactics for Demand Generation:

• Webinars and Events: Interactive formats that showcase your expertise and create direct engagement.
• Case Studies and Whitepapers: Data-driven proof points to demonstrate the value of your solution.
• Email Campaigns: Tailored drip campaigns that keep your brand top-of-mind.
• Retargeting Display Ads: Re-engage leads with personalized ads based on their previous interactions with your site or content.

Supporting the Bottom of the Funnel (BOFU)

While demand generation is primarily associated with TOFU and MOFU, its influence extends to the BOFU stage. The awareness and trust you've built earlier in the funnel make it easier for your sales team to convert leads into customers.

For example:

• Sales Enablement Content: Use demand generation insights to craft content that addresses specific objections or pain points.
• Precision Targeting: Run BOFU ads aimed at decision-makers who've already shown high intent.

Why Demand Generation Is Essential in B2B Marketing

Demand generation is not just about filling the top of the funnel—it's a strategic process that aligns marketing and sales to drive sustained growth. By leveraging tactics like display advertising, content marketing, and retargeting, demand generation ensures your pipeline is filled with high-quality leads ready to convert.

Key Benefits:

1. More substantial Brand Presence: B2B buyers remember and trust companies that provide value early on.
2. Improved Lead Quality: Demand generation nurtures prospects, so only qualified leads move forward.
3. Optimized Campaign Performance: Data-driven tactics, including display ads, ensure you reach the right audience with the right message.

Final Thoughts

So, what part of the marketing funnel is demand generation? Demand generation is pivotal in the entire B2B marketing funnel, primarily operating at the top and middle stages to create awareness and drive engagement. As part of a robust demand gen strategy, display advertising offers a scalable and targeted way to capture attention and nurture leads through the journey.

Whether you're looking to attract new prospects or re-engage high-value accounts, demand generation provides the foundation for a successful B2B marketing strategy. Ready to make it work for your business? Let's connect!

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