While Google already helps reverse mortgage lenders generate leads through Pay Per Click (PPC) ads, the search engine announced it was starting to test Comparison Ads.
The new format allows user to compare multiple relevant offers and make ads more useful for users. Comparison ads also helps advertisers reach the people who are most interested in their products and services said the announcement.
As an example, Google uses a mortgage scenario where users searching for “mortgage” may see a promotion from Comparison Ads prompting them to select the type of loan they’re looking for and to compare rates offered.
If users click the promotion, they’re taken to a page with more detailed sponsored results. They can choose directly from the offers listed on that page, or they can further refine their search by providing additional information like income and home value.
By giving users the ability to refine their search on a number of relevant attributes, Google says it can show more targeted ads and provide its customers with more valuable leads.
Advertisers will only pay when a user calls the phone number on the business offer (Google will provide to track) or fills out a form to request a quote.
While Comparison Ads is still an early-stage feature, Google is focusing on a number of ways to enhance the user experience:
- Speed — Comparison Ads shows targeted offers in less than a second. There are no long forms for users to fill out – Users see specific offers immediately and only need to fill in additional information if they wish to further refine their results.
- Transparency — Comparison Ads only shows real products. There are no teaser rates, or bait and switch offers. Comparison Ads also standardizes the information presented to users, making it easy for them to sort and compare offers on a side by side basis.
- Privacy — Comparison Ads won’t send advertisers any user information, including anonymized phone numbers, unless the user explicitly requests more information about an advertiser’s offer.
Why is this a big deal for the reverse mortgage industry? Google has provided targeted traffic for lead providers like Bills.com and Lendingtree through its search engine which they use to generate leads for reverse mortgage lenders. In a way, Comparison Ads take the “middle man” out of the equation and allow the advertiser (lender) to reach consumers directly through the search engine.
Comparison Ads also provides advertisers with a Cost per Acquisition (CPA) model where they no longer pay for clicks like the traditional AdWords model. Now, lenders will only pay when an action (phone call, form filled out) is completed.
However, reverse mortgage lead providers don’t seem all that worried. One company that spends a significant amount of money using Google Adwords to generate leads told RMD it’s skeptical of how much an impact the new format will have because reverse mortgage lenders don’t compete nearly as much on rate as most “forward” lenders.
While the new format is only being shown to a small amount of users in certain states, Google says it will increase the number of users who see Comparison Ad offers as well as the number of advertisers able to participate.
Currently, it only allows traditional direct mortgage lenders (non-reverse mortgage) to participate. You can see an example of how it will look at the link below.
