Analysing marketing in the legal sector
Discover how marketing in the legal sector works.
The legal sector is one of the most complex because of the pyramid structure of legal firms.
Top firms have disproportionately greater marketing resources and increasingly sophisticated marketing capabilities. Their exceptional performance masks changes in the broader market structure. Further down the pyramid, there is intense competition within mid-sized firms, while small firms are at risk of being made redundant by technological innovation.
We’ve comprehensively researched market changes to provide crucial insight for any partner, legal marketer, investor, or entrepreneur.
Market understanding
Clients now have greater control than ever, increasing the demand for the best lawyers at the top firms, and driving efficiencies elsewhere. Multiple factors have driven this change, including the commoditisation of legal products, access to greater information online, and the option to use accounting firms. This is reflected in the disruption of the mid-market, as well as the unbundling of legal services.
After a slow start, technology disruptors have also started to make their mark. The presence of highly invested scale-ups, particularly in AI, presents a significant threat to firms. And this has had knock-on effects for those choosing a career in law. Most trainees now realise they are unlikely to ever reach partner level.
Marketing strategy
The dominance of the top firms is astonishing. Their revenues are significantly higher than those further down the top 100, let alone those beyond them. This has enabled them to increase spending in key areas such as technology, whilst leveraging marketing budgets that belittle those of smaller players. Meanwhile, smaller players have struggled to compete despite proportionally higher budget allocations.
Marketing budgets are typically allocated towards strategies that generate trust and credibility in a firm’s capabilities. This means focusing on high-quality thought leadership content that is either presented at events or online platforms. Referrals from these online activities provide proportionally higher traffic than in other industries. This has led to the trial and adoption of new media types, including videos and podcasts.
Marketing activation
Despite their marketing budgets and sizeable in-house teams, the top firms rarely invest heavily in digital marketing tools and services. They also prefer not to use digital advertising or behavioural retargeting techniques. This is not without merit, as trust and authenticity is key for them. In addition, sales are rarely converted on a firm’s website, which makes tracking using intention particularly challenging. Instead, marketing activities are primarily devoted to comprehensive event programmes, as well as thought leadership distribution.
The top firms also rarely court the capabilities of the largest agencies and agency networks. This is often due to cultural differences in the way both parties work, and their approaches to workflow. Even so, an array of smaller agencies cater to the needs of small firms, providing support in areas such as web-design, PR, content marketing and social media engagement.
This research includes
14 pages of analysis (4,000 words).
Evidence-based approach.
Case study examples and success stories.
Main tools/services/agencies.
References for additional reading.
Published March 2020.