Is Facebook Marketing Dead for Lenders?

Starting Oct 12, 2022, Facebook discontinued its “Special Ad Audiences” feature for ad targeting. This major announcement poses a significant hurdle for all financial institutions –including brokers and loan officers –who use Facebook ads as part of their lead generation.

What’s changed?

The ‘special ads audiences” is a tool that allows advertisers to define their target audience. This category only applied to ad campaigns that dealt with credit, employment, politics, and housing, and it aimed to help advertisers define their audience while minimizing possible discriminatory practices that would violate federal laws. 

Facebook ads in the above mentioned categories are required to use the “special ads audience” tool, according to Meta ad policies. 

This tool will no longer be available beginning Oct 12.

Any ads currently using the “special ads audience” tool will pause.

Why is Facebook changing its ad policies?

This major update is part of a settlement agreement with the DOJ where Meta (Facebook) was accused of algorithmic discrimination. It was alleged that Meta’s mortgage and housing advertising algorithm discriminated against users based on race, color, religion, sex, disability, familial status, and national origin.

The complaint also asserted that Meta’s advertising algorithms partially relied on those factors that are protected under the FHA.

Are Mortgage Ads a thing of the past?? 

Well... not really. While this change creates a significant obstacle for Facebook mortgage marketing, it does not mean mortgage ads on Facebook are dead!

Advertisers will still be allowed to run mortgage ads to their page followers, stressing how critical it is to grow your digital presence and real estate partnerships. 

At LenderHomePage, we’ve long understood the power of leveraging these factors for business stability and scalability. This is what it takes to win –in all markets and in spite of policy changes.

Join us for a special webinar this Thurs, Oct 20. Led by our the Voice of Customer champion, Kwe Parker, this not-to-be-missed live webinar will give you the insight and tools you need to leverage Facebook advertising in 2023.