Everyone always talks about how much “better” Google leads are than any other ad platform. The reason being that someone who enters “mortgage” in the search bar shows active purchase intent. The problem lies in the cost. Let’s do a breakdown to compare Facebook Ads to Google Ads.
With Google, you bid on keywords. If someone types that keyword and you have the winning bid then your ad pops up on the top of the search.
Mortgage keywords are the 3rd most expensive keyword on all of Google.
They can run as high as $44 a single click.
Not a lead. A click.
Every time someone clicks that link you get charged $44 whether they fill out the form or not.
On Google, the intent is higher than Facebook, but are they more motivated or credit qualified?
No way to tell. Most likely the people searching are those early in the process. How many people do you know that ask Google how to get a mortgage? Sure the prospects may be more motivated, but that does not always equal higher quality.
Some mortgage keywords are cheaper, but the average is still north of $15.
After a potential lead clicks your ad they will still need to fill out the form.
Advertising experts are paid large sums of money to maximize how many people enter their information on your landing page. It is called conversion rate optimization (CRO).
And still, the top 10% of landing pages convert at only 11.45% (Google Study).
Most (top 25%) only turn 5.31% of those clicks into leads.
So that $15 a click could cost you $131 to $283 a lead.
The reason Google is so expensive is that a handful of huge enterprises, with money to burn, bid up the cost of lending keywords. They reduce the competition by paying more to make sure they receive those clicks and you show up less often.
Facebook advertising is different and this is why I think it is more profitable.
- You pay per impression to place your ad in front of someone who fits your ideal customer.
- You bid (or let Facebook bid for you) to place your ads against other advertisers.
- Facebook has so much inventory that the average per 1000 impressions averages about $30.
However, unlike Google pay per click, Facebook has millions of data points on that potential prospect. When set-up correctly (w/ teo) we can train Facebook with data on how to better target those who will qualify for a loan.
The more data you give Facebook’s algorithm, the more laser-focused it becomes…
Everything is tracked with a series of what are called pixels.
These pixels track every customer on your site and Facebook looks at these patterns leading up to a form being filled and will instantly start to target BETTER prospects.
Your pixel is yours. So the more quality data you feed it, the better your ads will perform over your competition.
The more engagement (clicks, likes, and comments) and conversions your ads produce the LOWER your ad costs will be.
Facebook rewards those advertisers whose ads perform well and do not disrupt the user experience.
The secondary benefit of social advertising is branding + post sharing.
Not only will you generate cheaper leads, but your posts will be shared with your prospect’s social circles to create free advertising.
Not to mention your brand will be shown to thousands of people in your local area, so when the time is right they will reach back out.
So unlink Google you do not have to compete solely on budget. A good ad + offer can guarantee you more exposure, leads, and loans.
By combining Facebook (+Instagram) + teo our customers have seen lead costs average $4.28.
That’s not per click, but per actual full long-form lead with a soft credit pull.
That’s 30 to 60 times more leads.
I’ve spent over $100K on both platforms and at the end of the day, I much rather take my chances of closing 30 to 60x more leads through Facebook than worrying about their “intent.”
The problem with Facebook is a high volume of leads you end up spending a lot of your time chasing them down. Most leads will never qualify, yet you have to spend just as much time on the bad leads as the good.
With teo, we provide each lead with an on-demand credit qualification that leads to higher conversions.
This allows our users to focus on effort and outreach in those leads with superior credit.
Watch this quick demo to learn more and lock in all-time low pricing.