Today’s display advertising tools are a far cry from the spammy pop-ups and animated banners of years past. Modern display ads can help lenders not only increase brand awareness among their target audiences, but also generate mortgage leads. In fact, Google estimates that its Display Network drives nearly 20 percent of total conversions for the median advertiser.
Nevertheless, loan officer advertising using Google display ads can be a major undertaking, particularly when the target and actual costs and ROI of your campaigns aren’t clear. To understand what lenders should expect from their display advertising efforts, NestReady created a “Performance Benchmark Cheat Sheet” that examines the costs of clicks and conversions for display ads in the real estate and finance industries.
Read on to learn how to plan and execute your mortgage lead generation campaigns using Google display ads.
Display Benchmarks for Real Estate & Finance
In general, display ads have an average click-through rate (CTR) of 0.35 percent—far lower than the CTR of 1.9 percent for paid search ads 1.9 percent. (It’s worth noting that display ad CTRs on Facebook range from half a percent to 1.6%.) However, CTRs are higher in both the finance and real estate industries: In fact, finance display ads have an average CTR of 0.5 percent, while real estate display ads have an average CTR of 1 percent.
More good news for lenders and loan officers: display campaigns are one of the cheapest forms of advertising. In fact, the average cost per click (CPC) for display ads ranges from 40-80 cents.
Real estate and finance display ads sit at the top of this range, averaging 70 and 80 cents per click, respectively. Compare this to paid search, where average CPC ranges from $1-2.
Like click-through rates, conversion rates for display ads are lower than other ad formats, with a cross-industry average of 0.77 percent. While real estate display ads have a similar conversion rate of 0.8 percent, finance-related display ads beat the average with a conversion rate of 1.1 percent.
Finally, loan officers looking to incorporate display ads into their mortgage lead generation efforts should expect to pay more for each lead they convert with this tool. While the average cost per conversion (CPA) across all industries for Google display campaigns is around $33, CPA in the real estate industry is more than twice as high at $74. Finance display ad CPA is also above average at $56.
Loan Officer Advertising Display Campaigns Tips
Here are some tips for bidding on and building display campaigns for loan officer advertising.
- Opt for retargeting campaigns. When launching display ad campaigns for loan officer lead generation, the best place to start is with retargeting ads. These are display ads that track people who visit your site, then “follow” them across the web, serving your ads on other sites in Google’s display network. Click-through rates of retargeted ads are ten times higher than those of typical display ads. Plus, website visitors targeted with this type of display ad are 70 percent more likely to convert.
- Choose the right display ad sizes and formats. Not all display ad sizes are created equal. According to Google, the most effective banner ad sizes are large rectangles (336x280 pixels), medium rectangles (300x250), leaderboards (728x90), half pages (300x600), and large mobile banners (320x100). Choose one of these sizes to increase your click-through rates.
- Use audience targeting to improve conversions. Real estate and finance display ads are not as expensive as, say, ads for the education ($143) or B2B ($130) industries. However, the cost of converting mortgage leads with display ads can add up, particularly if those leads are not relevant or qualified. To keep your display ad CPA low, be sure to invest in tools for analytics and audience data management.
Get the Full Performance Benchmarks Report
To learn more about how to plan and measure the success of your display advertising campaigns, be sure to download NestReady’s complete “Performance Benchmark Cheat Sheet” report. It covers average cost-per-click, conversion rates, and more for paid search and display advertising in the real estate