Learn about mortgage advertising.
In a time when consumers are bombarded by advertising, it can be easy to forget how much thought actually goes into creating an effective advertisement. And the goal of virtually all advertising is to be effective: in other words, to motivate the consumer into taking an action and typically spending money. With mortgage advertising, this tends to be an even bigger hurdle to clear, because very few people can or would make a quick decision about taking out a mortgage to purchase a home. As a result, mortgage advertisements tend to provide very carefully constructed messages that feature some major piece of information that will capture the consumer's eye and encourage the consumer to take that essential next step.
Rate Advertisement
A rate advertisement might be the most common type of mortgage advertising. The rate advertisement will feature the rate as the largest and most important part of the ad or will comment on the rate as being "too low to mention!" or "the lowest in years!" In some cases, the advertisement will feature the rate itself, which will be touted as a lower rate than other companies are offering. This is only partially true, of course: interest rates are fixed at the federal level, and any variations do not necessarily remove the cost from the consumer; the cost is just placed elsewhere. For instance, if the advertisement highlights a rate of 4.25 percent when the standard rate is 4.5 percent, the lender advertising that rate is probably padding another part of the loan to make up for the rate difference.
Loan Types
The loan-type advertisement is also designed to catch the consumer's eye by providing a buffet of loan options, at least one of which will interest the consumer and fit his or her situation. This type of advertisement tends to be simple in composition, with the name of the lender and a box of loan options, each with a link. The simplicity is used to prevent any other distractions. An advertisement containing a list of loan types, in addition to information about rate and other mortgage details will confuse the consumer more than motivate the consumer. A basic advertisement that only highlights the loan types will draw consumers who are looking specifically for a variety of loans. The options might include "30-Year Interest Only" loans, "5-Year ARM" loans (ARM representing an adjustable rate mortgage), "40-Year Fixed" loans, or some other variation of these.
Pictures of Mortgage Officers
The phrase "mortgage officer" has a very official--and somewhat ominous--sound to it. So, some mortgage ads will attempt to draw consumers by featuring images (real or otherwise) of mortgage officers. These images will feature attractive smiling faces with friendly names and easy contact information. By providing only the images, the mortgage company takes something of a risk, because the advertisement does not provide any specifics about the cost to the consumer. This type of advertisement, however, tends to focus around the idea that consumers are more likely to work with something or someone they trust.
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