Mortgage lead prices to rise as trigger lead ban disrupts lenders

"We are seeing lead costs trend higher across the board, said Praveen Chandramohan, senior vice president at Cotality Mortgage Data Solutions. Because the ban removes a high-volume, low-cost source of data, lenders are reallocating those budgets into bidding-based environments. Chandramohan said increased competition on platforms such as Google Ads and third-party lead aggregators is pushing up the cost per lead. He estimates that costs for internet leads on some platforms have risen about 45% year over year."

"Industry experts described the lead generation market as a pyramid. At the top are internet-generated leads the most expensive option, often costing hundreds of dollars each. Direct mail occupies the middle tier scalable but inconsistent in performance. At the base are trigger leads, which can cost only a few cents or dollars, with additional fees when a phone number is included. If the trigger leads layer disappears, companies will be forced to compete for a limited supply of alternatives."

"Bankrate described this as a shift to focus on quality. Because we don't rely on the trigger lead' supply chain, our pricing remains stable while the rest of the market faces a supply shock, the company said in a statement. As the junk' supply of unsolicited leads vanishes, lenders are aggressively reallocating budgets toward Bankrate's permissioned, organic search, and marketplace traffic. This surge in demand for vetted,"

Lead costs are rising as the ban removes a high-volume, low-cost source of data. Lenders are reallocating budgets from trigger leads into bidding-based environments such as Google Ads and third-party aggregators, driving increased competition and higher cost per lead. Internet lead costs on some platforms have risen roughly 45% year over year. The lead market functions as a pyramid: expensive internet-generated leads at the top, direct mail in the middle, and low-cost trigger leads at the base. Loss of trigger leads will force competition for finite consumer intent signals and push prices higher, increasing demand for permissioned, vetted channels.

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