Movin’ On Up: Reaching adult Millennial and Gen Z audiences in today’s mortgage marketplace
29 April 2022 | By Theresa Yerger, Sr. Content Marketing Manager, Financial Services
The real estate market has seen its share of twists and turns over the last two years. Consumer demand for mortgages has skyrocketed, a result of pandemic home buying and historically-low interest rates.1 While the market is expected to slow in the second half of 2022, more than 6.2 million total existing homes are expected to sell this year, many to younger buyers.2 More than half (55%) of mortgage applications in 2021 were comprised of Millennials and adult Gen Z.3
“Mostly, 2022 will be a year of steady growth, although slower compared to the previous two years. In addition, the market will probably stay tilted toward sellers for now. This is due to the projected levels of buyer demand combined with limited supply.” 4
– Holly Schuffet, Quicken Loans Industry Insider
The desire among younger adult audiences to enter the housing market is expected to grow,5 however these consumers are digital natives and may prefer a digital-first home buying experience. Six in ten mortgage shoppers would be open to completing their entire mortgage application online.6 Mortgage brands may want to consider an advertising strategy that reaches these consumers through their preferred channels.
Younger adult mortgage consumers prefer experiences that are digital-first and cross-channel
According to GlobalWebIndex (GWI) data, Amazon’s younger adult mortgage audiences align with these industry trends. On Amazon, younger adult mortgage audiences are +44% more likely to prefer communicating online vs. face to face. They also have a higher propensity to consume media across Amazon and other digital touchpoints. These audiences are 1.2X more likely to stream Freevee, 1.4X more likely to use a Fire HD Tablet, 1.8X more likely to hear about products/services on a streaming music service and 2X more likely to use Twitch vs. total respondents.7
In-market mortgage consumers are connected across multiple smart home devices
In general, Amazon audiences who are in-market for a mortgage tend to be more connected at home.8 According to GWI data, Amazon mortgage audiences are 1.6X more likely to own a smart home device and 1.5X more likely to have six or more devices per household vs. total respondents. Amazon’s in-market mortgage customers are also +25% more likely to watch an online video created by a brand, indicating they may be more likely to be receptive to branded video content.9
Here are three tips for mortgage brands who want to connect with digitally-savvy home buyers in 2022:
Integrate journey touchpoints. As media consumption habits have become more fragmented, Amazon Ads can help create relevant touchpoints for in-market mortgage audiences across multiple devices, including Fire HD Tablet, Fire TV and within premium audio content on Alexa-enabled devices.
Consider showing up where in-market mortgage audiences are more likely to be consuming their favourite content – on streaming TV and Twitch. Amazon Ads can incorporate brands into quality content, including Freevee, Thursday Night Football and premium third-party publishers.
Inform journey building with life event insights. Amazon’s insights around consumer interests may inform when audiences would be more likely to be receptive to relevant mortgage brand messaging.
Learn more about financial services marketing.
1 McKinsey: Five Trends Reshaping the US Home Mortgage Industry, Dec 2021
2 Zillow: January 2022-January 2023 Home Value & Sale Forecast, Jan 2022
3 Wall Street Journal: Millennials are Supercharging the Housing Market, Dec 2021
4 Zing by Quicken Loans: 2022 Housing Market Predictions: What to Expect, Dec 2021
5 Wall Street Journal: Millennials Are Supercharging the Housing Market, Dec 2021
6 McKinsey: Five Trends Reshaping the US Home Mortgage Industry, Dec 2021
7-9 GWI USA, US market, Q4 2020 – Q1 2021