Budget season is fast approaching, and midsize law firms must strategically plan their 2025 marketing budgets to stay competitive and achieve growth. 

As they crunch the numbers, firm leaders would be well advised to focus their strategic marketing investments on digital marketing channels, as well as leveraging data and technology and enhancing the client experience. 

Digital marketing, in particular, should be a cornerstone of their business development strategy. This includes investments in search engine optimization (SEO), content marketing, social media advertising, and programmatic advertising. These efforts can significantly boost a firm’s visibility and client engagement, leading to higher returns on investment.

Account-based marketing (ABM) is another critical area for potential investment. ABM focuses on personalized marketing efforts tailored to specific high-value clients or client segments. By creating customized marketing campaigns that address the unique needs and challenges of key accounts, firms can build stronger client relationships and foster long-term loyalty.

The ‘Typical’ Spend

How much should law firms be spending on marketing? The widely quoted industry figure from law firm consultants is 2-5 percent of annual gross revenues. 

However, this range may be a bit outdated. It’s certainly lower than the figures on spending by business-to-business service providers collected by The CMO Survey, a nationwide survey of marketing leaders sponsored by Duke University, Deloitte, and the American Marketing Association.

According to The CMO Survey’s Spring 2024 report, providers of business-to-business services dedicated between 8 and 9 percent of their overall budget to marketing expenses.

Of course, the percentage spent will hinge largely on firm leaders’ perceptions about next year’s economy. At this point, the macroeconomic figures are pointing to a relatively strong 2025. Recent forecasts from the University of Michigan and The Conference Board suggest that GDP growth should increase in the fall with moderate growth continuing well into next year. Inflation is expected to decline to around 2 percent—although much depends on how fast and how often the Federal Reserve cuts interest rates in the next several months.
 

Ten Questions to Consider

Here are a few suggested questions midsize firm leaders and marketers might ask themselves to optimize marketing investments and ensure their budgets effectively support their firms’ unique needs and strategic priorities.

1. What insights can we gain from reviewing our previous marketing expenditures, and how have past marketing investments performed in terms of generating results? Reviewing past expenditures helps identify successful strategies and areas that may need improvement. This review will provide real data to help guide future investment decisions to enhance the overall effectiveness of your marketing efforts.

2. What specific marketing objectives should we set to ensure our efforts are focused and measurable? Setting clear, measurable goals aligns marketing activities with desired outcomes, making it easier to assess success and adjust strategies accordingly.

3. How does our marketing budget compare to industry standards, and how can we adjust it based on our firm’s size, location, and specialty? Understanding industry benchmarks ensures that your budget is competitive and appropriately scaled for your firm’s unique context. 

4. What do our competitors' marketing expenditures reveal, and how can we ensure our spending allows us to maintain a competitive edge? Analyzing competitors' spending helps benchmark your budget and identify areas where you can differentiate yourself.

5. Which marketing channels have proven most effective for our target audience, and how should we allocate our budget to maximize impact? Identifying effective channels enables you to focus your budget on areas that reach your audience most efficiently and increases the impact of your marketing efforts.

6. How can we prioritize high-impact marketing activities to ensure we are investing in strategies that offer the greatest potential return? Prioritizing high-impact activities ensures that your budget is spent on strategies with the highest likelihood of achieving significant results and maximizes return on investment.

7. What flexibility should we build into our budget to test new marketing approaches and adapt to unforeseen opportunities or challenges? Flexibility in your budget allows for experimentation with new strategies and adaptation to changing conditions. Staying agile and responsive is a key advantage in the digital age.

8. How will we monitor our marketing spend to stay within budget, and what systems will we use to track the performance of our marketing efforts? Implementing robust monitoring systems ensures you stay on track with your budget and provides insights into the effectiveness of your marketing campaigns. Regular reviews and adjustments help refine your budget based on performance, ensuring that resources are continually optimized for the best results.

9. What portion of our budget should be dedicated to long-term brand-building efforts, and how can we invest in activities that might not provide immediate returns? Investing in long-term brand-building activities fosters sustained growth and brand recognition, even if immediate returns are not evident, supporting overall brand health.

10. Which marketing technologies and tools should we invest in to enhance our efficiency and effectiveness, such as CRM systems or automation software? Investing in the right technologies improves marketing efficiency and effectiveness, streamlines processes, and enables better data-driven decision-making.

Developing a thoughtful marketing budget is crucial for midsize law firms aiming to enhance their market position and drive growth. By investing in effective digital strategies and leveraging new technologies, firms can build stronger client relationships and achieve meaningful results. A well-structured budget not only supports immediate marketing goals but also contributes to long-term success and competitive advantage.

 
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