By Legal Futures Associate Conscious Solutions
The Law Firm Marketing Club (LFMC) is once again inviting professional services firms, including law and accountancy practices across the UK, to participate in this year’s Professional Services Marketing Survey. This survey offers a critical opportunity to gauge the current state of the UK sector and understand the key trends shaping its future.
What were some of the highlights last year?
One of the most notable findings was the increase in marketing and BD budgets across all firms. On average, firms allocated 3.1% of turnover to marketing, up from 2.7% the previous year. Law firms invested 3.0% (up from 2.7%) and accountancy firms 2.0% (up from 1.7%). For context, a £10 million turnover law firm was spending approximately £300,000 annually on marketing and BD activities (excluding salaries). This uptick indicated a growing recognition of marketing’s critical role in maintaining a competitive edge, especially in an evolving market.
In terms of team size, the survey found that in-house marketing and BD teams remained relatively consistent compared to the previous year, with an average team size of 3.0 for all firms, 2.8 for law firms, and 3.2 for accountancy firms. While some firms had deviations based on their size, the data showed a steady investment in existing teams rather than significant expansions, suggesting that firms are focusing on maximizing the impact of their current marketing resources.
Furthermore, the survey highlighted an increasing involvement of marketing and BD teams in strategic planning. 23% of firms reported that marketing drives the strategic process, while 58% contribute to it. This shift indicates that marketing is now more integrated into the decision-making process, with firms recognising that a robust marketing strategy is essential to business growth.
The report also noted a continued reliance on third-party consultants and agencies, with 60% of firms outsourcing SEO efforts, 58% outsourcing design work, and 40% outsourcing digital marketing. This trend reflects the growing complexity of digital marketing and the need for firms to leverage external expertise to stay competitive, especially in areas like SEO where specialisation is key.
Looking back at firm performance in 2023, 66% of firms reported increased turnover, while 58% increased their investment in technology and 40% increased their headcount. In terms of marketing budget allocation, digital advertising took the largest share at 23% (up from 20% the previous year), indicating that firms are continuing to prioritise online engagement. Event expenditure, however, decreased to 9% from 13% in the previous year, showing a shift towards more digital-focused marketing strategies. Other areas like website maintenance and sponsorships remained consistent.
As firms moved into 2024, they focused on opportunities tied to digital transformation, AI integration, and improving client engagement. However, challenges such as adapting to technological advances, recruitment, and managing marketing budgets effectively remained top of mind. The 2024 survey confirmed that firms were increasingly leveraging digital tools and enhancing client experiences while balancing their marketing investments to drive future growth.
Looking back at 2024, these trends have largely played out as anticipated. UK firms have ramped up their digital efforts, focusing on optimising their online presence through website overhauls and increased investment in digital advertising. AI has become a game-changer, enabling personalised marketing, automating client interactions, and streamlining service delivery. This shift has allowed firms to engage clients more effectively and provide smarter, data-driven solutions.
However, the challenges flagged in last year’s report have also become evident. Firms are struggling to keep pace with rapid technological advancements, while the demand for skilled talent has reached new heights. Competition has intensified, and standing out in a crowded market remains a significant challenge. Although firms are eager to expand their brands and enter new markets, they’re under increasing pressure to manage marketing budgets efficiently and achieve strong ROI, especially amid economic uncertainty. As 2024 unfolded, success hinged on blending digital solutions with traditional services to stay ahead of the curve.
What will this year’s survey teach us?
That’s in your hands.
The survey aims to provide valuable insights into the current state of professional services marketing. By participating, you’ll contribute to a broader understanding of the trends shaping the sector. Here’s a quick look at the key questions we’ll be exploring:
The first set of questions gathers basic information, such as your firm’s type—whether it’s a law firm or accountancy practice—and your region of operation. We’ll also ask about your role within the firm and your firm’s size, both by turnover and headcount. Understanding these aspects helps contextualise the data we collect.
Next, we dive into specifics, such as your firm’s focus – whether you serve individuals or businesses – and the percentage of turnover allocated to marketing and business development. We’ll also explore the size of your in-house marketing team, the involvement of your marketing team in strategic planning, and whether you rely on consultants or agencies for support.
We’re also keen to know how your firm performed in 2024. Were key metrics on the rise or did they take a dip? And how did your marketing and BD budgets get split across various areas?
Looking ahead to 2025, we’ll ask about your plans for the upcoming year – whether you plan to increase, decrease, or maintain marketing and BD expenditure. We’ll also gather your expectations for firm growth and any potential challenges you foresee. Alongside this, we’ll assess your firm’s marketing and BD maturity, pinpointing your top opportunities and challenges for the year ahead.
Lastly, we leave space for any additional comments or insights you’d like to share. Your thoughts will help shape the findings and give us a clearer picture of what the future holds.
Once the report is ready, you’ll also have the option to receive a copy of the findings. This is your chance to not only reflect on the past year but also to contribute to the trends that will drive the professional services sector in 2025 and beyond.
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