Brokers call for "collective" monoline ad campaign

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MonCana’s campaign to promote brokers has renewed calls for other mono-lines – as a group, this time -- to mount a nationwide blitz geared toward promoting the channel.

“My feeling is it’s the mono-lines and us against the banks,” said Ron Price, broker/co-founder of DLC – The Price Team in Fergus, Ont. “Lenders, with their network and resources can band together and mount a generic campaign that can boost public awareness of the flexibility offered by mono-lines and the unbiased advice brokers have to give.”

Commercial banks corner about 75 per cent of the mortgage market leaving the remaining 25 per cent for mono-lines and other smaller lenders, according to Price. Mortgage professionals are also in fierce competition with the mortgage specialists retained by the banks.

The idea of mortgage-focused lenders leveraging their marketing efforts surfaced once more this week, when MonCana announced it has launched a two-week nationwide campaign, which features elevator digital screen ads highlighting the benefits of brokers’ services.

A longer, more sustained campaign involving other monolines would have an even a stronger impact, said Price.

“That would be amazing,” said Michelle Mohr, a broker with Invis, in Price George, B.C. “A straightforward non-branded awareness campaign would resonate better with consumers rather than one specifically tied to a single company.”

The idea calls to mind the “Get cracking” campaign of Canadian egg farmers and the long-running “Got Milk?” campaign of the California milk producers, Mohr said.

Among the issues such a campaign could target are long-enduring negative notions that portray brokers as shady operators compared to the banks.

“Such a campaign would be a big boost especially for independent brokers and those operating in smaller markets that are fighting an uphill battle against the bank-only mentality of many borrowers,” said Mohr.

  • Robert Stanfield, Invis agent on 24/11/2012 3:46:49 AM

    The best example of these type of industry ads are from the insurance brokers industry. Their governing body places print, radio and television ads all the time. I don't think the insurance companies contribute any funds to these ads, from what I understand it is what their governing body does for the members. I don't want this to turn into a CAAMP bashing session, I just always wonder why CAAMP doesn't have any advertising campaigns educating the public. I feel it is CAAMP's responsability before it is the lenders responsability.

  • Tyler P on 24/11/2012 4:08:00 AM

    Being from the insurance industry I can tell you
    Robert that the insurance campaign cost 5 million annually and that the insurance companies indeed contribute. There is a surcharge on their dues to pay for it. I would be interested to know how much each broker would be willing to contribute.

  • Daylin on 24/11/2012 5:55:28 AM

    I think a campaign promoting brokers is a great idea but it seems we should be looking to ourselves first. I believe CAAMP has done some industry advertising, but as far as I know the focus was the AMP designation. I think we need to raise public awareness of broker services in general before working to raise awareness of AMP. If we, as industry members, were to come together and let CAAMP know this is something we want and are willing to financially support, and if CAAMP were to then approach monoline lenders asking them to contribute to the campaign, I bet we could accomplish something that would be a huge boost to our industry.

  • Paolo Di Petta | dipettamortgage.com on 24/11/2012 9:16:47 AM

    I was just thinking about this last night - I heard an insurance commercial that said "call your Independant Insurance Broker and ask them about (insurer)."

    It would be great if some of our lesser known institutional lenders got out there and built some brand recognition to help us sell their product. (and a throw to "your local mortgage broker" would be nice too)

  • Gerry Bray on 27/11/2012 6:31:04 AM

    Let's make certain we, the mortgage brokers, understand the implications from a campaign such as this. Don't get me wrong, I would love to have the consumer better understand what mortgage brokers do, what the difference is between an independent broker versus the bank mortgage specilist positioning themselves as a broker, and the monoline lenders we have available to us.

    However, if we brokers are asking monolines to pony up for an ad campaign and consumers start inquiring to these monoline lenders for financing...why would they need us and not hire their own sales force? Let's be clear that some monolines currently spend big money on retention teams so brokers are challenged to move the client at renewal. Do you really think they wouldn't hire their own sales force then?

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