How much do law firms spend on marketing? Firms frequently find themselves asking this question, and to many it’s unfathomable to think that “hanging a shingle” used to be pretty much all a law firm needed to do to market their business.
We’ve come a long way!
Today’s marketing options are endless. Things like well-maintained websites, SEO optimization, and social media posts are really important for your business. So are things like print ads, internal marketing collateral (like flyers and brochures), speaking engagements, and networking.
But all of those things cost money, and if you try to do them all, marketing costs can quickly escalate and get out of control.
According to a recent ABA survey, over 50% of today’s law firms operate without a marketing budget (that figure skyrockets to 69% for firms with two to nine attorneys and 80% for solo firms).
It’s probably safe to assume that no budget is not a good marketing strategy. But if you are going to set aside money for marketing, how much should you plan to spend? Well, looking at industry standards (for those firms who do have a marketing budget, that is) is probably a good place to start.
So, let’s first take a look at how much law firms are spending on marketing overall and then break down the ways that you might utilize a similar budget.
The marketing budget: what’s the norm?
Asking how much a law firm spends on marketing is a bit like asking how much men weigh. The answer depends heavily (no pun intended) on things like size and strength.
When it comes to marketing budgets, law firms vary wildly. It’s safe to assume, for example, that DLA Piper’s budget is appreciably more than that of the solo practice your nephew runs out of his basement.
Nonetheless, there are some general benchmarks that can help provide a starting point. According to some experts, for example, law firm marketing budgets typically range from 2% to 15% of total revenue. This means that a firm with a gross revenue of $1 million might spend anywhere from $20,000 to $150,000 annually on marketing.
If you decide to take a similar approach, how should you spend all that cash? Here are some ideas:
Digital marketing: The modern approach
Given that one-third of legal clients start their lawyer search online, effective marketing has to include digital marketing, which is of course a key aspect of determining how much law firms spend on marketing these days.
Let’s take a look at some of the top digital marketing strategies and break down their associated costs.
Search engine optimization (SEO)
SEO is a key component of any digital marketing strategy. By optimizing their websites for search engines, law firms can improve their visibility and attract organic traffic. SEO efforts can include keyword research, on-page optimization, and link-building campaigns.
On average, small to mid-sized firms might spend anywhere from $3,000 to $5,000 per month on SEO services, depending on the level of competition and the firm’s goals.
Pay per click (PPC)
PPC advertising, such as Google Ads, allows law firms to bid on keywords and display ads to users searching for legal services. This can be an effective way to generate immediate traffic and leads, though it can also be costly. The cost per click (CPC) for legal-related keywords can range from $80 to $300, depending on the practice area and competition.
Social media marketing
Social media marketing is another crucial component of a modern marketing strategy. Platforms like LinkedIn, Facebook, and Twitter offer law firms the opportunity to engage with potential clients, share valuable content, and build their brand. And while use of the platforms themselves is generally free, hiring a full time social media manager worth their salt can cost over $70,000 per year.
Content marketing
Content marketing involves creating and distributing valuable, relevant content to attract and engage a target audience. For law firms, this might include blog posts, white papers, eBooks, and videos. Investing in high-quality content can establish a firm as a thought leader and help build trust with potential clients.
This may be one of your firm’s best digital spends. Law firms that blog regularly receive 97% more links to their website and attract 400% more traffic than those with inactive blogs. Freelance content writers charge $500 and up for simple blogs to several thousand for more extensive content creation efforts.
Video marketing
Video marketing continues to gain traction as a powerful tool for engaging potential clients. Law firms can create informative videos addressing common legal questions, client testimonials, or behind-the-scenes looks at the firm’s operations.
These videos can be shared on the firm’s website, social media channels, and video platforms like YouTube to enhance visibility and engagement. Experts in the field estimate that video marketing will cost your firm about $1,000 per month.
Traditional marketing: Is it still relevant?
While digital marketing often takes center stage in today’s discussions, traditional marketing methods still hold significant value, especially for law firms looking to build a strong local presence. So, let’s explore these methods and their associated costs.
Print ads
Print advertising can be a powerful tool for law firms, particularly in local newspapers, legal journals, and magazines that target specific industries or demographics. Costs for print ads vary widely based on publication circulation and ad size, ranging from a few hundred to several thousand dollars per ad.
TV and radio
TV and radio spots offer another avenue for reaching a broad audience. Local TV and radio advertising can be particularly effective for building brand recognition and perceived credibility. These ads aren’t cheap, however. It can cost over $100,000 to produce a 30-second TV ad, and that’s not including the cost of actually putting it on air.
Billboards
Yep, you can still choose the Better Call Saul route if you want to. Billboards and outdoor advertising can provide high visibility, particularly in high-traffic areas. That said, the costs can be substantial – ranging from $750 to $14,000 per month depending on location and size.
Networking and sponsorships
Networking events and sponsorships still remain important components of law firm marketing. Law firms often sponsor local events, charity functions, and industry conferences to increase their visibility and connect with potential clients and referral sources.
Costs for these activities can vary, from a few hundred dollars for sponsoring a local event to several thousand for participating in national conferences.
Emerging trends in law firm marketing
Of course, marketing, like the law, is always evolving. Here are some of the latest innovations in legal marketing. And while there’s not a lot of hard data out yet on the costs of these emerging strategies, they’re worth looking into as you develop your firm’s overall marketing strategies:
Artificial intelligence (AI)
There’s certainly no shortage of controversy about how AI is changing the practice of law. When it comes to law firm marketing, however, this technology will likely gain quick acceptance.
AI-powered tools can analyze vast amounts of data to identify patterns and predict outcomes. This allows your firm to build more effective targeting and personalized marketing strategies. For example, AI can help your firm target groups for specific ads, recommend successful content for your desired audience, and help with things like SEO strategies.
Personalized marketing
Personalized marketing is becoming increasingly important as clients seek more tailored experiences. By leveraging data from various sources, law firms can create personalized content and offers that resonate with individual clients. This might include customized email campaigns, targeted social media ads, or personalized follow-up communications.
Influencers
Influencer partnerships are another emerging trend, particularly on social media. Collaborating with influencers (i.e., individuals with significant followings in relevant fields) can help law firms reach new audiences and build credibility. For example, a family law firm might partner with a popular parenting blogger to promote their services to a wider audience.
Don’t forget the best marketing strategy
Figuring out how much law firms spend on marketing gives us a great watermark for our budgets.
All of the marketing strategies outlined above are undoubtedly useful and relevant in today’s market. That said, the best marketing strategy for lawyers doesn’t cost a dime beyond your standard operating budget.
We’re talking, of course, about referrals. If you do great work for your clients, they’re likely to recommend you to others. And the best thing about those clients is that they come to your firm with a built-in level of trust.
According to some sources, roughly 65% of new business comes from referrals. So, maybe those firms operating without a marketing budget are onto something after all.
If you do solid work, care for your client’s needs, and take the time to actually ask for referrals, you might just build yourself a successful law firm without the headaches and expenses of marketing.
