In today’s digital-first world, technology is crucial to the success of any mortgage lender. From managing online advertising efforts, to cultivating relationships with leads, to testing and analyzing performance, the right mix of tools and solutions can help financial institutions and brokers achieve a variety of goals while maximizing ROI.
With that in mind, NestReady surveyed the top 500 mortgage lenders in the U.S. to find out which digital marketing tools and strategies they’re using to grow their businesses. One of the major technologies NestReady examined among these lenders was behavioral retargeting. Read on to learn how the best lenders are using retargeting to find new customers.
What is Retargeting?
Behavioral retargeting (also known as behavioral remarketing, or simply, retargeting) is a form of targeted online display advertising in which ads are shown to consumers based on their Internet browsing activity. More specifically, retargeting is used by marketers to advertise to people who have previously visited their website, Facebook page, or other web property.
Retargeting ads operate via a pixel embedded within the target webpage or email, which tags each viewer by adding a tracking “cookie” to their browser. Once this cookie is set, the advertiser is able to show display ads elsewhere on the internet via an advertising platform.
Retargeting is the lowest-hanging fruit when it comes to digital advertising. Because retargeting ads “follow” consumers around the web with content personalized to their behavior, the click-through rate (CTR) of a retargeted ad is 10 times higher than that of a typical display ad. While regular display ads generally require a high volume of impressions to generate sufficient ROI, you can benefit from retargeting with as little as a few hundred visitors to your website each month.
Perhaps it’s not surprising, then, that retargeting has grown steadily more popular among marketers over the last decade or so:
How Lenders Are Using Retargeting
Mortgage lenders are starting to embrace retargeting technology to find new mortgage leads and drive conversions.
The top 500 mortgage lenders are leveraging 10 different retargeting platforms—less than half of the solutions NestReady has identified for this category. In fact, the possibilities are even wider: a study by Datanyze lists 53 retargeting platforms in use across multiple industries.
To date, just under 50 percent top lenders on our list are leveraging a dedicated retargeting platform. While this suggests that lenders are catching on to the value of retargeting, they still have a long way to go to catch up to other industries: by comparison, over 90 percent of large retail and e-commerce brands use at least one dedicated retargeting platform as part of their marketing technology stack.
As for which specific solutions lenders are using, Google dominates the field. In fact, 66 percent of top lenders who employ retargeting are using Google Ads’ remarketing platform, with Bing’s competing offering coming in at a distant second.
This is to be expected: Google and Bing offer the simplest and lowest-cost platforms on this list, making them the natural choice for first-time remarketers. While more powerful solutions like AdRoll and Criteo offer additional targeting functionality, they’re also more difficult to learn. Nevertheless, these tools are poised to grow in popularity as lenders refine their audiences and strategies.
Of course, there’s one more solution out there that challenges Google’s dominance: Facebook. While Google’s network includes just under 500,000 websites, Facebook is used for retargeting across 1.8 million sites. We chose to leave Facebook’s retargeting solution off our list for technical reasons (the platform uses some alternative tactics to track users and serve ads), but it’s worth noting that around 38 percent of lenders are using Facebook’s retargeting tools to advertise their businesses.
Regardless of the solution, it’s clear that retargeting is one of the best tactics out there for driving conversions and increasing brand awareness. Over the next few years, we expect more top lenders to adopt retargeting solutions—or lose ground to competitors who do.
Get the Full “Top 500” Report
To learn more about how top mortgage lenders are using retargeting and other technologies, be sure to download NestReady’s complete report. It offers valuable insights on hundreds of solutions across 11 different technology categories, including web analytics, marketing automation, social media, video, and more. Click here to get your copy of the report.