Facebook ads have become an incredibly popular advertising method for businesses of all sizes and industries. With over 2 billion monthly active users, Facebook provides an immense platform to reach potential customers. For mortgage brokers specifically, Facebook ads present an opportunity to promote their services and acquire new clients. But do Facebook ads actually deliver results for mortgage brokers? Let’s take a closer look.
The Potential Benefits of Facebook Ads for Mortgage Brokers
On the surface, Facebook ads seem like an excellent way for mortgage brokers to market their services. Here are some of the potential benefits:
- Large audience – With so many active Facebook users, mortgage brokers can target very specific demographics who may be potential homebuyers.
- Cost-effective – Facebook ads can be a relatively affordable advertising method, especially compared to other options like print ads or TV commercials.
- Measurable results – Facebook provides detailed analytics on ad performance, so brokers can see what’s working and optimize accordingly.
- Retargeting – Brokers can keep their brand and services top of mind by retargeting users who have already engaged with their Facebook content.
- Flexibility – Brokers have control over their budget, targeting, creative, and more, allowing them to refine their strategy.
With such advantages, it’s easy to see the potential value of Facebook ads for mortgage brokers seeking more clients and higher loan volume.
Challenges Mortgage Brokers May Face with Facebook Ads
However, simply running Facebook ads does not guarantee success for mortgage brokers. There are some key challenges to consider:
- Expensive clicks – The mortgage industry is highly competitive, so brokers may find themselves in bidding wars, driving up costs per click.
- Low conversion rates – Clicking an ad doesn’t equal a closed loan. Brokers need ads that truly convert leads rather than just drive traffic.
- Ad fatigue – In a crowded marketplace, Facebook users grow numb to mortgage ads, harming click-through rates.
- Compliance – Mortgage ads must adhere to various regulations, limiting messaging options.
- Tough targeting – Precisely defining your target audience on Facebook can be difficult.
These factors make it harder for brokers to gain an adequate return on their Facebook advertising investment. Advanced strategy and optimization are required to overcome such hurdles.
Tips for Mortgage Brokers to Improve Facebook Ad Performance
Here are some tips brokers can follow to get better results from their Facebook ad campaigns:
Focus on the mortgage funnel
Take prospective clients on an advertising journey that mirrors the mortgage process. Raise early awareness with broad targeting, then narrow your focus to serious buyers eligible for loans.
Personalize and segment your ads
Avoid a one-size-fits-all approach. Create highly-tailored ads that speak directly to different audience segments based on intent, demographics, and more.
Emphasize education over selling
Use ads to inform potential clients on mortgage-related topics and establish your expertise. Soft-sell instead of hard-sell.
Retarget engaged users
Keep your brand top-of-mind by continuously retargeting people who’ve already shown interest – site visitors, form fillers, etc.
Test different audiences, creatives and placements
Try a variety of targeting options, ad formats, designs, captions and placements to see what resonates best with your goals.
Measure cost per loan, not just cost per click
If Facebook drives leads but not actual loans, it’s not working. Track closed loans as a true success metric.
Integrate with a CRM to track leads
By integrating Facebook ads with a CRM platform, brokers can easily monitor leads generated by different campaigns.
While challenging, brokers who take a strategic approach and continuously optimize their campaigns can find success with Facebook advertising.
Case Studies on Mortgage Brokers Using Facebook Ads Effectively
Don’t just take our word for it. Here are a few examples of mortgage brokers seeing great results from Facebook ads:
Fairway Independent Mortgage
This large independent mortgage company ran a series of Facebook video ads focused on specific loan products and scenarios, like refinancing or VA loans. In total, the campaign generated over 600 mortgage leads in just 3.5 months – a highly successful conversion rate.
Movement Mortgage
Movement Mortgage, one of the fastest growing mortgage lenders in America, used Facebook Lookalike Audiences to target prospective clients similar to their existing customer base. They emphasized video content and saw loan volume increase 21% year-over-year.
PrimeLending
This nationwide mortgage lender created a multi-touch attribution model tracking how Facebook ads impacted prospects across devices and platforms. They determined Facebook was a key driver, responsible for over 20% of funded loans.
These examples clearly demonstrate that with the right strategy, execution and optimization, Facebook ads can deliver impressive results for mortgage brokers.
The Verdict on Facebook Ads for Mortgage Brokers
Given the challenges and success stories, what’s the final verdict on Facebook advertising for mortgage brokers? Here are the key takeaways:
- Facebook provides a sizable platform for mortgage brokers to reach potential prospects at scale.
- Simply running ads does not guarantee results. Careful targeting, optimization and integration with other marketing efforts is crucial.
- With the right approach focused on generating conversions, Facebook can be an effective channel for acquiring qualified leads and driving new business.
- Brokers must track tangible metrics like cost per loan and monitor ROI closely across campaigns.
- For brokers willing to invest the time and resources into optimization, Facebook ads can deliver significant benefits.
In summary, Facebook ads do work for mortgage brokers with the proper strategy, but they require substantial effort to yield real payoff.
Frequently Asked Questions
What are the main benefits of Facebook advertising for mortgage brokers?
The main benefits are:
- Large audience reach and targeting options
- Relatively cost-effective compared to other ad formats
- Measurable results and optimization capabilities
- Retargeting abilities to keep brand top of mind
- Creative flexibility for testing
What should mortgage brokers know before running Facebook ads?
Before running Facebook ads, brokers should:
- Do in-depth audience research and targeting
- Familiarize themselves with Facebook’s policies and ad options
- Have clear goals and know what constitutes a conversion
- Understand metrics like cost per lead and cost per loan
- Develop engaging, compliant ad creative
- Integrate with CRM to track leads and ROI
Proper preparation and planning will help maximize ad results.
How can mortgage brokers optimize their Facebook ads?
To optimize Facebook ads, brokers should:
- A/B test different elements like targeting, creative, etc.
- Segment audiences into logical groups for personalized messaging
- Watch impression and click metrics closely to identfy low-performing ads
- Use highly relevant images, video and captions tailored to each audience
- Retarget engaged users and guide them through the marketing funnel
- Monitor cost per lead and conversion metrics and optimize accordingly
Ongoing optimization based on performance data is key for driving better results over time.
What metrics should mortgage brokers track for Facebook ads?
Important Facebook ad metrics to track include:
- Impressions
- Reach
- Clicks and click-through rate (CTR)
- Cost per click (CPC)
- Conversions and conversion rate
- Cost per lead
- Cost per funded loan
- Return on ad spend (ROAS)
Carefully monitoring this data will allow brokers to identify high-performing ads and campaigns vs. those needing improvement.
How can mortgage brokers create effective Facebook ad creative?
Effective Facebook ad creative should:
- Catch the viewer’s attention within 3 seconds
- Emphasize visuals like images or video
- Convey a clear, concise message relevant to the intended audience
- Provide value rather than directly selling
- Use clean, simple designs that stand out
- Automatically play silent video for Facebook mobile formats
- Include a strong, compelling call to action
Well-designed creative optimized for the Facebook platform and audience goals gives ads the best chance to perform successfully.
Conclusion
With proper strategy and ongoing optimization, Facebook advertising can be an effective platform for mortgage brokers to reach new prospective homebuyers, generate qualified leads, and ultimately fund more loans. However, in the competitive mortgage landscape, simply creating Facebook ads is not enough. Brokers must approach these campaigns with clear goals, conversion tracking, actionable analytics, and a willingness to continually test and refine based on performance. For brokers who invest the time into maximizing their Facebook ad results, the payoff can certainly be worthwhile.