The past year was marked by the Fed's new monetary policy, which turned the tables on the well-established US housing market. According to Federal Home Loan Mortgage Corporation, the average 30-year mortgage rate overran 7% for the first time in more than 20 years. It resulted in a substantial decline in home sales, pushing housing affordability to its worst levels in almost 15 years.
Since the cost of moving into a new house has become exorbitant, many homeowners set their sights on enhancing the current living conditions to ensure maximum comfort and keep their property's value high. The recent Harvard's Joint Center for Housing Studies forecasts say that home improvement and maintenance investments will grow by 6.5% through the third quarter of 2023. These numbers prove that the home remodeling sector continues to show stable growth regardless of the global economic recession and drop in the local housing market.
What does it mean for marketers and publishers? ClickDealer says, it means that now is the best time to step up their performance marketing game, promoting valuable offers and services in constant demand. Below we will shed light on the trends in the home remodeling market and how affiliates can benefit from them.
The Market of Home Improvement Services - Forecasts and Trends
The size of the home improvement market covering construction, renovation, and installation services is expected to hit $585.3 billion by 2030, showing a compound annual growth rate of 6.2%. The willingness of people to invest in updating their homes can be explained by mortgage rate fluctuation and the rise of global residential property prices. Homeowners feel uncertain about their ability to repay a housing loan in the prevailing economic conditions. That is why they invest their hard-earned money in home renovation rather than purchasing real estate.
According to the Houzz survey held by the end of 2022, around 67% of people who are going to start a remodeling project in the next 3-12 months want to stay in their current property rather than sell it and buy a new one that would fit their needs. Almost 91% of respondents report that they plan to hire at least one professional contractor to execute their overhauls. The most demanded home improvement services include bathroom and kitchen updates, plumbing, flooring, and HVAC systems installation.
Among factors expected to affect home update trends this year, experts identify the after-effects of the pandemic that changed the way people spend their time at home. On top of that, the man-made energy crunch erupting in the world also takes its toll on average households, accelerating their switch to energy-saving appliances and alternative energy sources. Inflation and the surge in material costs allow for predicting that home updates will mainly focus on enhancing the spaces' functionality and fixing immediate issues. Any optional projects aimed at redesigning the interior won't be a priority for homeowners this year. Nevertheless, the tendency to adopt costly smart devices will continue in 2023.
The survivance of the home improvement industry, along with the growing demand for the services of local contracting businesses, means affiliates can utilize profitable affiliate programs such as those offered by ClickDealer to ramp up their commissions. Particular attention should be paid to underutilized performance marketing models like pay-per-call. This actionable lead generation approach brings qualified inbound phone calls that are more likely to convert than leads from other advertising efforts. Studies show that the conversion rate generated by such campaigns ranges from 30% to 50%, while from digital ads through clicks, only 1%-2%.
How to Acquire High-Intent Home Improvement Leads Through Pay-Per-Call Campaigns?
Around 97% of home service consumer journeys begin on the web. As soon as shoppers finish matching online offers and settle on one or two contracting companies, they often call to request quotes or make appointments. That means businesses can expect more leads to turn into clients through calls than through online forms. Marketers, in their turn, can utilize conversation intelligence data from phone calls, customizing campaign requirements and selecting inbound calls that meet their specifications.
Pay-per-call is a way for publishers to encourage targeted users to take action in the form of a phone call rather than clicking through to a website. Prospects who dial a number show much more interest in the promoted services than those who click a link, as they have more time to reflect on their decision. That means a lead acquired in this model is more likely to convert, earning the advertiser a sale and the publisher a commission. High conversion rates and extensive lead vetting is what make this model popular with CPA networks like ClickDealer.
A well-thought-out lead generation strategy elaborated from result-driven ad creatives to professional processing of incoming calls ensures tangible results for both affiliates and businesses. Nevertheless, the key ingredient of success when it comes to integrating marketing campaigns of this type lies in working with the right partners.
The Difference Between Specialized and General Affiliate Networks on The Example of ClickDealer
There are companies specializing exclusively in pay-per-call and performance marketing agencies operating with a broader range of advertising models. However, there is no clear advantage in picking one over another due to the enormity of the lead generation market and the resources that larger companies commit to developing in it. For example, ClickDealer is a global affiliate network with a portfolio of CPA offers from several industries, which includes a multitude of CPL home improvement offers, as well as dedicated staff and specialized tools for optimal pay-per-call campaign management. ClickDealer’s integrated powerful analytical tools, extensive reporting capabilities, access to exclusives in the home improvement niche, and all-around support from dedicated managers allow affiliates to optimize campaigns and multiply their revenue.
Publishers who meet and exceed their customer acquisition objectives are used to partnering with proven performance marketing networks like ClickDealer. They put a premium on competitive commission rates, extended tracking opportunities, and reliable account support to expand their audience reach with little effort on their side.
