“How much should we spend on marketing?” is one of the most common questions PI firms ask. Before diving into benchmarks, it helps to understand the full landscape of law firm marketing and what drives results. The honest answer: it depends entirely on what you’re trying to accomplish.
The Benchmarks
The Average
Research shows law firms spend approximately 2% of gross revenue on marketing on average, with a wide range of 1-20% depending on goals and practice area.
About half of all firms spend 1-5% of revenue on marketing. Another 14% spend 6-10%.
The Growth Correlation
Here’s where it gets interesting: LexisNexis’s 2024 High Growth Study found a stark difference between firms based on growth trajectory:
| Firm Type | Marketing as % of Revenue |
|---|---|
| High-growth (20%+ CAGR) | 16.5% |
| Moderate growth | 8-12% |
| No-growth | 5% |
High-growth firms invest more than three times what no-growth firms do. That’s not coincidental, marketing investment and growth are directly correlated.
The PI Reality
For personal injury specifically, growth-focused firms regularly fall in the 10-20% range, especially when scaling TV and PPC simultaneously. The economics of PI, high case values, contingency fees, support marketing investments that would be impossible in other practice areas.
How to Think About Your Budget
Start with Goals, Not Percentages
The right budget isn’t a percentage. It’s what’s required to achieve your growth objectives.
If you want to maintain current case volume, you might need 5-8% of revenue. If you want to grow 20%+ annually, you likely need 15%+ of revenue. If you’re entering a new market or launching a new practice area, you might need even more temporarily.
Consider Your Market
A firm in a less competitive secondary market might achieve meaningful presence with $15,000/month. That same budget in Los Angeles would be nearly invisible against competitors spending hundreds of thousands monthly.
Market competition affects required investment more than any percentage benchmark.
Factor in All Costs
Marketing budget isn’t just media spend. Include:
- Media/advertising: TV, digital, radio, billboards
- Technology: CRM, call tracking, intake software, analytics
- Content/SEO: Writers, optimization, link building
- Creative/production: Video, design, web development
- Agency fees: If using external partners
These “hidden” costs add materially to pure media spend.
Typical Budget Allocation
Research suggests this general allocation pattern for law firm marketing budgets:
| Category | % of Marketing Budget |
|---|---|
| Internet marketing | 28% |
| Print/billboard | 19% |
| TV | 17% |
| Networking | 16% |
| Podcasts/radio | 14% |
| Other | 10% |
This is an average across all practice areas. PI firms typically skew heavier toward TV and digital, and understanding marketing ROI by channel can help you decide where each dollar goes.
Common Misconceptions
“2% is enough for everyone.” That’s an average across all firms and practices, including those not trying to grow. High-growth PI firms intentionally spend far more.
“Marketing means ads only.” Events, referral development, technology, analytics, and team training all sit in the marketing budget. Media spend is just one component.
“We’ll increase budget when we grow.” The causality often runs the other way, investment drives growth, not the reverse. Firms that wait for growth before investing often stay stuck.
“Cutting marketing saves money.” In the short term, yes. But marketing cuts typically result in case volume decline 6-12 months later, creating a difficult recovery cycle.
Setting Your Budget
Budget by Growth Goal
For Maintenance
If your goal is maintaining current case volume: 5-8% of revenue. Focus on proven channels with established ROI. Optimize efficiency rather than expanding reach.
For Moderate Growth
If you’re targeting 10-15% annual growth: 10-12% of revenue. Balance proven channels with testing new opportunities. Invest in brand building alongside direct response.
For Aggressive Growth
If you’re targeting 20%+ annual growth: 15-20% of revenue. Multi-channel approach including TV/CTV. Significant brand investment to establish market presence. Expect higher short-term CAC that improves as brand builds.
The Investment Mindset
The firms that grow don’t think of marketing as an expense to minimize. They think of it as an investment with measurable returns.
At $2,700 cost per signed case and average case values in six figures, the math often works dramatically in your favor. The constraint isn’t usually budget. It’s building the systems that convert investment into cases efficiently.
Deep dive: Our law firm advertising budget guide shows how top firms distribute spend across channels.