How Much Should Law Firms Spend on Advertising?
While print and billboards have their charms, digital paid advertising is generally more effective than traditional advertising. After all, your potential clients now spend more time viewing digital media than traditional media.
Also, unlike billboards where you have to hope the right person is driving on that street, digital advertising lets you place your message in front of your ideal clients and likely buyers.
But how much cash should you put down on advertising? That’s the million-dollar question. Just like everything in law, the answer is: It depends. How much your law firm spends on paid advertising depends on your goals, vision, and overall budget.
Start by considering your gross revenue goal for next year.
How much will you need to increase your current revenue to meet your target growth?
If you’ve spent zero on law firm marketing up until now, we recommend setting aside 6-10% of your revenue as your advertising budget.
Need an example? Take Labster Sara Danilson.
She and her husband Jeremy lost a huge referral source. They were scrambling to figure out what to do next. They’d counted on that source! They needed to drum up business right away and tried several avenues before settling on Google Ads.
While Google Ads can depend on your market and location, they found quickly setting up ads returned an ROI of 600%, which more than made up for the lost referral source. With a careful strategy, your returns will be well worth the investment.