last Updated 4 November 2021

What Can Chairs Teach Us About Generating Mortgage Leads?

If you’re looking to generate more mortgage leads, should you use Facebook Ads or is it better to go with Google Ads?

That’s a question I’m often asked by mortgage brokers and financial advisers.

A lot of the time, mortgage brokers are drawn towards Facebook Ads because it’s perceived as being cheaper than Google Ads - where the cost per click for mortgage-related terms can easily end up being £5 or more.

In fact, only last week, I had a call from a mortgage broker called Steve who said he was wary about using Google Ads because of the high cost per click. Steve said he thought Facebook Ads might be a better bet because it sounded like the costs were lower.

Here’s what I told him…

For the past couple of weeks, I keep getting shown an ad on Facebook for an office chair.

It’s a nice looking chair - basically a cheap clone of those fancy mesh Herman Miller ones that sell for big money.

mortgage leads with facebook ads or google ads - What Can Chairs Teach Us About Generating Mortgage Leads?

I’ve clicked on this Facebook ad a few times and looked at the website, but have I bought a chair?

No… because I don’t actually need a new chair right now.

And that’s the thing with Facebook. If I’m on there because I’m bored - and, let’s face it, that’s why most people go on Facebook - then an advert for a fancy new chair might pique my interest enough for me to click the ad.

But because I don’t actually need a new chair, and all I’m doing is passing a bit of time while I wait for a meeting to start or the kids to come out of school, I never take action.

At some point in the next year, I probably will buy a new chair and I’ll probably pick this brand that has been advertising to me - either because I’m now aware of their product or because they’ll get lucky and show me their ad again at the exact moment when I feel like treating myself.

But it’s very hard to say if and when that purchase will actually happen because my level of intent to purchase is currently very low.

But now let’s imagine that tomorrow morning I walk into my home office, sit down at my desk and BANG!...

...my chair collapses beneath me.

Suddenly that’s a different story.

Now my level of intent to purchase is going to be very high - because I don’t want to have to stand up all day or sit on a dining chair.

And what will I do? Will I go back to Facebook and try to find that ad for the nice Herman Miller style chair? Probably not. And sod’s law says that if I did then that would be the one time the ad didn’t appear in my timeline.

No, what I’m far more likely to do is go to Google and type in something like 'Herman Miller style chair'.

And if a suitable ad comes up and the price of the chair is right then I’ll buy it immediately.

And that, in a nutshell, is why Google Ads will get you better quality mortgage leads than Facebook Ads and why the cost per click is higher... 

...because the person who clicks an advert on Google needs you NOW whereas the person who clicks an ad on Facebook MIGHT need you some time in the future.

So, yes - Facebook Ads might be cheaper than Google Ads but that’s because the traffic you get from Facebook generally has lower levels of intent.

That’s fine if you’re willing to nurture your Facebook traffic and if you’ve got lead magnets and email marketing systems in place to help you turn that cold traffic from Facebook into warm leads over a period of time.

But if you want warm leads right now, then Google Ads is going to be a far better option.

Of course, Google Ads only works like I’ve described above if you target the right keywords - the kind of keywords that will mean you get seen by the high-intent searchers and not by the window-shoppers.

If you want to learn more about how to choose the right keywords for generating mortgage leads cost-effectively using Google Ads then take a look at this course where I’ll teach you the exact same process I use to find low-cost high-converting keywords for my done-for-you clients.

About the author 

David Miles

As a digital marketing consultant, author and trainer, I specialise in helping businesses in the financial services sector use the internet to get more enquiries and increase profits.

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