Facebook  Ads For Mortgage Brokers and Lenders – A Case Study avatar
Facebook Ads For Mortgage Brokers and Lenders – A Case Study

As Facebook becomes more and more popular as an advertising tool, less traditional companies are taking notice. We receive many inquiries from Mortgage Brokers about Facebook ads mostly because we have published quite a bit of content about Facebook Ads and Realtors.

In this post, however, we want to share a case study about a Mortgage Broker client and how Facebook worked for him to deliver leads and an amazing cost per lead.

 

A mortgage broker came to us because he had read about some of our prior work with Facebook ads for Realtors, and thought it would work for him as well but he was not sure how. We told him we should start running ads to his specific target audience in his geographic area about applying for a mortgage loan. He was a bit wary about it, but agreed, and gave us a landing page on his website to send the traffic generated by the ad.

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Here’s his landing page:   facebook-ads-for-mortgage-brokers   Yes, it’s long copy.   However, studies show that long copy, especially for landing pages with more complex offerings is important. You should address the benefits, the concerns, the value, your unique selling proposition, and a call to action.   Many of the important direct response elements were on this page and he wanted to send traffic from Facebook to this page where visitors could then have an opportunity to submit their contact information in order to learn more about the program. Below is the pop-up contact form that he had on the landing page.

contact us form from mortgage broker website landing page
Contact form on the mortgage broker landing page

Stay with me here… However, we wanted to show him the power of Facebook Lead Ads. “The difference is,” we explained, “that Facebook Lead Ads don’t send the traffic to a website landing page, instead, they attempt to capture the lead right there within Facebook.” Lead Ads are extremely effective because they reduce the amount of effort a potential prospect has to do in order to “take the next step”. This is because Facebook pre-fills the form in the ad with the information that the user has already given to Facebook – such as phone number, email, name, etc. So effectively, people only have to tap the submit button – the form is filled out for them by Facebook; this is important as well when you consider that the majority of people are operating on a mobile device and filling out a form on a landing page is difficult versus with a Lead Ad. And when an offer is good and the target audience selection is right, lead ads work great. Here’s one of his Facebook ads: facebook-ad-for-mortgage-broker-example Here’s the first view of the Lead Ad when someone clicks “Sign Up” – we’re pre-qualifying the prospects in this ad. Pre-qualifying leads is important and what makes this so powerful.

pre-qualification lead ad mortgage broker
Pre-qualifying prospects with Lead Ads

And here’s what it can look like when they click “I Qualify, Now What?” – you do have options in terms of what fields/data you are collecting from a prospect as well:

Mortgage Broker Facebook Lead Ad Form
Mortgage broker Facebook Lead Ad form after someone clicks “Sign Up” on the ad.

So we started running the 2 campaigns at the same time to compare results:

      1. A traditional Traffic campaign was set up (side note: there are more than 10 different campaign objectives in Facebook, Traffic campaigns are just one of those. Most people are aware of Boost Posts which are not a good option to choose) to send users to the landing page on the client’s website
      2. Lead Ad campaign was set up to capture leads right within Facebook

 The ads and the target audience were identical in both campaign objectives.

Campaign Results For Traffic and Lead Generation

These were the results for the first 4 days of the campaigns:

facebook-ads-for-mortgage-brokers-results-reach
Mortgage Broker Facebook Ad Campaign Results – Traffic Campaign + Lead Generation

Reach: During the first few days, the “winner” campaign in terms of reach and impressions was clearly the Traffic campaign – over 4,400 people reached (Reach is defined as the number of unique people that the ad was shown to) with the traffic campaign versus only about 1,500 for the Lead Ad campaign. Then we looked at Unique Link Clicks and CPC (cost per link click). Again, the winner was the Traffic campaign.   facebook-ads-for-mortgage-brokers-results-cllicks The traffic campaign was taking people to the website for only $0.41 cents per click! Pretty amazing price for a click and we had taken 96 people to the site for only about $45 dollars. The Lead campaign was way behind with a cost per link of $2.13 and only had taken 19 people to the site. Traffic campaigns are the most common campaigns (after boosting posts) and yet, are very often the wrong campaign objective to use. The KPIs (Key Performance Indicators) of a traffic campaign might look great compared to Google Adwords. When clients see these KPI’s, generally they are very happy and impressed with Facebook’s ability to deliver traffic for such low cost. But herein is the importance of really looking at what you’re trying to with an ad campaign. At the end of the day, will visits to the site suffice?? Or do you want to make a Sale?

Here’s the rest of the campaign Results:

      • For a Traffic campaign, Results are measured in clicks. For this campaign, the results were 109 clicks. However, even though there is a Contact Me button on the landing page on the website, the client received NO inquiries from the landing page
      • The Lead campaign is measured in Leads. These were people that filled out a form with their information (name, phone number, and email) and requested to be contacted about more information about the first time buyers plan. With about $45 dollars in ad spend, the client received 4 leads

 With this data, we convinced the client that a traffic campaign was not the way to go. He paused the campaign after a week and moved all the budget to the Lead Ad campaign. facebook ads for mortgage brokers results leads At the end of one month, we had 34 qualified leads: Names, numbers, and emails of first-time buyers wanting to be contacted regarding the first time home mortgage. The cost per lead: $22 on average with approximately $700 in ad spend in one month.

mortgage broker lead ads facebook - $22 per lead
34 qualified mortgage leads @ $22 per lead

Why did Lead Ads work?

The success of this campaign was due to several factors:

      1. Value proposition: The ads focused on the message “buy your first home” and showed in the images people in the target market with moving boxes and in empty homes as if looking at homes with a realtor
      2. The Offer: The ads successfully conveyed that this mortgage product was a “deal” that not every lender could offer. It offered specific savings (worded “save up to”)
      3. Urgency: The ad indicated that this program was limited and only valid for people who qualified
      4. Call to action: The call to action button said: “Tell me if I qualify?”
      5. The Campaign Objective: Lead Ads were key to the success because it eliminated the extra steps to contact the lender.

 What can else can be done to improve Facebook ad results?

There are other areas that can be tested that could further optimize the campaign. For example, the ad message. Here are some examples:

      • “Interest rates are at the lowest, find out how much you qualify for.”
      • “Did you know Renting is more expensive than Buying? You qualify for more than you think.”
      • “Save up to $___ with our exclusive loan program for people in the [city] area”

 Remarketing/Retargeting: Remarketing is another tool that can be used to further optimize the ads. You can remarket to those people that clicked on the ad, but did not submit the form – we’ve seen this work very well. Or you can remarket to those people that visited the site but did not fill out a form there either. Testing other target audiences is possible as well. The key is to find a loan product and make it specific for a certain group of people. Remember, a good ad includes these principles:

      • Value proposition
      • Offer
      • Urgency and scarcity
      • Call to Action

 And when trying Facebook Ads, remember the objective: Boosting posts will get you social butterflies to share or like, Traffic ads will bring people to your website, Lead Ads will get you LEADS.

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We encourage comments on the post in the below comment section – if you thought this was helpful, or just have questions, please post below.