A marketing question that comes up a lot from both large banks as well as single LO’s alike is, “Should I be advertising on Google or Facebook for mortgage leads?”
We wish we could give you a straightforward answer, but just like you would tell a potential borrower who asks if they should buy points or use that money toward the down payment — “it depends”.
Google Adwords and Facebook Ads are pay-per-click (PPC) ads where you pay for each click on the ad. Unlike a static billboard or bench ad, the people who see your PPC ad are doing so because either they’ve expressed interest in that type of mortgage product or they meet the criteria of the kind of potential borrower you’re looking for.
We’ll explain this more in just a minute.
Just like we mentioned above, there’s no one-size-fits-all when it comes to paying points versus putting down a larger down-payment. All you can do is present different scenarios, give your client the numbers, make professional recommendations, and let them decide for themselves which route they want to choose.
We’ll do the same thing with this Google Adwords vs. Facebook Ads for mortgage leads post. We’re going to give you the facts, share our professional recommendations, and let you decide what makes sense for you, your goals, and your lending business.
Have more marketing questions? Let us know in the comments below!
Keyword-based versus Social-based
Google is a search engine, so it’s only natural to have their PPC ads based on search queries. Yes, you’ll be able to specify location, language, and a few other targeting metrics, however, Adwords still primarily relies on the keywords used in searches.
Google has approximately 2.6 billion searches per month. It also has an advantage when it comes to local marketing thanks to the rise of mobile devices. Something to consider…
Facebook, on the other hand, is a social network and it has a lot more demographical information that allows you to target consumers more precisely. They have metrics for age, location, gender, language, job title, family, hobbies, and interests based on what they’ve clicked on, shared, comments, liked, or places they’ve “checked-in” at.
Facebook averages about 1.3 billion users and is unchallenged when it comes to hyper-specifying your target consumer.
Adwords Action versus Facebook Engagement
Adwords has a higher rate of action. The assumption is that since the user is actively looking for that loan product, or mortgage service, or answers to home loan question, the searcher is primed to take action.
So, for example, if your prospect is in the market to buy a home, your ad says “click here to find out how much home you can afford,” you can see how it would entice an already curious home shopper.
With Facebook Ads, however, you leverage engagement to gain a mortgage lead. For example, you can answer questions right on the ad — providing answers that others will read — boosting brand and loyalty through the roof!
So while Adwords may have a higher rate of action, Facebook Ads are better at converting clicks to mortgage leads via improving your brand.
All-Text Adwords versus Facebook Image Ads
Adwords ads are entirely text. Some may see this as limiting, after all, you won’t be able to include your logo or your professional headshot. But this actually works toward your advantage.
The all-text ads look just like any other link on a search making it look like an “info resource” rather than an ad, increasing the chances that they’ll click through.
Facebook Ads rely on more on images to attract than on the text. This makes sense since pictures and video are more likely to elicit a response and that’s what Facebook wants users to do — engage!
You can use just one image, a carousel of images, or even a short video talking about all the loan products you offer. Pair it with some engaging copy, and you got yourself a Facebook Ad ready to lure in your targeted consumer.
Adword Management versus (Near) Self-Managed Facebook Ads
Since Google and Facebook’s pay-per-click ads are based on different metrics, their cost per click also vary.
Remember that Adwords is keyword-based, so the cost per click relies on how much competition there is for those keywords. Some keywords can cost as little as a few cents per click and can go up as high as $30 (or more) per click.
The going rate for the keywords isn’t static either. Just like the mortgage rates, sometimes the price goes up and sometimes it’s down. If you’re considering an Adwords PPC, you’ll want to review how much you’re paying per click daily. If you see the price for your ad going up, you can pause the ad temporarily, so you don’t blow your entire budget on 15 clicks.
Facebook ads work more on how wide of audience you want to reach. So after you set up your ad and specify your target consumer, you’ll also set a budget.
Let’s say that your budget is $300.
One way to set your $300 budget is to spread it over an entire month’s worth of clicks. Facebook calculates that it will cost you $2 per click, for example, over the whole month until your $300 is used up. The trade-off, however, is that your ad will appear to fewer people.
But what if you want to reach a wider audience instead. In this case, you place a bid per click, maybe $10, and tell Facebook that your overall budget is $300. Facebook will show your ad to a broader audience based on your criteria and will do so until you’ve exhausted your budget.
With either option, you’ll know exactly how much you’re paying per click up front.
Click here to read exactly how to set up a Facebook Ad for mortgage leads.
As you can see, both have unique advantages for generating mortgage leads through paid ads. If you’re looking to do some aggressive local marketing for in-market buyers, Google Adwords wins. But if you’re on a budget and don’t have a lot of time to manage ads, and want to generate leads by improving your brand, you’re better off with Facebook Ads.
Want to know how your mortgage website ties into your PPC lead generation?
Give us a call! We’ll show you how our mortgage websites help you convert clicks into mortgage leads and manage those leads all the way through funding!