Internet

Search Engine Optimization Vs. Pay-Per-Click Advertising

Written by Gaurav Bhola, MSM, Managing Editor & Community Manager on August 28, 2007 9:07 am EST

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The last few years of the housing boom didnt require much marketing and lead generation effort because new home buyers, home refinancers, and home equity loan seekers were abundant. The income generated was immense within the industry and the future seemed perpetually bright.

The low interest rates lead to a sea wave of new mortgage business compelling new mortgage entrants to set up shop. However, now the housing landscape has changed 180 degrees. What we see now are:

• Higher interest rates
• Oversupply of new homes
• Growing foreclosure rates
• Foreclosure properties adding to an already saturated housing market
• Reluctant new homebuyers
• Lower refinancing opportunities due to higher interest rates
• Increasing reluctance towards home equity loans by homeowners
• Tightening of mortgage lending practices by lenders
• Increase in consumers seeking to rent rather than buy a home
• Oversaturation of mortgage companies resulting in too many companies chasing the same business

The mortgage industry, in the midst of a transition finds itself at a crossroad. One path leads to going back to traditional forms of customer acquisition and the second path, the correct path, leads to new innovative forms of customer acquisition. More companies are adopting No Cold-Calling policies; consumers are signing up for the Do Not Call Registry and Privacy Op-out Notices for solicitations. Herein, the heydays of traditional lead generation techniques of cold-calling, direct marketing, and knocking on realtors’ doors are becoming less profitable in terms of time-money expended and income generated.

The internet has made the consumer savvier and more educated. The consumer is using search engines on the internet to cut through the clutter to find solutions to their needs. The internet has revolutionized every facet of our modern lives; the power of search engine optimization technology upon the mortgage customer acquisition market cannot be ignored. Recent research shows that over 80% of prospective internet consumers use search engines to find information, services, and products.

This is the reason why mortgage professionals should leverage search engine marketing as part of their customer acquisition marketing program. Currently, there are two main methods of attracting visitors from search engines: Pay-Per-Click Advertising and Search Engine Optimization.

Pay-Per-Click Advertising:

• Includes a brief text advertisement placed in the sponsored links section of search engine results
• You pay a fee to the search engine (for example: Google, Yahoo, etc.) every time someone clicks on your advertisement.
• The higher the amount you pay to the search engine per click for certain keywords, the more effective your ad is
• As a result, your site will rank higher in the paid results
• Pay-per-click advertising leads to instant migration to your website
• Pay-per-click advertising can cost you upwards of double digit dollars per click (example: if it costs to you $10 per click and if your ad is clicked on ten times, you pay the search engine $100, 20 clicks cost you $200, and so on)
• Can be very expensive for you if visitors click and are directed to your website but dont fill out an application

Herein, acquiring mortgage leads from a reputable internet company that specializes in Search Engine Optimization can be a cost-effective and efficient alternative to expensive Pay-per-click advertising.

Search Engine Optimization:

• The continuous procedure of writing, coding, and designing a Website to amplify the probability of its pages appearing at the top of the “organic” or “natural” search engine results
• Successful website ranking using search engine optimization is a methodical and measured process that can take months or years to achieve.
• The website makes necessary adjustments as needed to maintain high rank in search engine results through search engine optimization techniques
• Websites that rank high on search results are more trusted by consumers than Pay-Per-Click ads
• Mortgage brokers and lenders affiliated with such trusted websites can increase their sales and business income

Research shows that consumers are more likely to do business with a website that ranks well through organic search results rather than pay-per-click advertisement. Also, these same consumers are more serious about conducting business leading to higher sales conversion.

Consequently, as a mortgage professional you must affiliate with and acquire leads from a reputable internet company that drives leads through search engine optimization. Remember, a lead generated through search engine optimization is a Quality Lead.

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