How to set a budget for a law firm’s PPC campaign?

Understanding the Importance of Budgeting for PPC in Law Firms

Pay-per-click (PPC) advertising has become an increasingly critical component of digital marketing strategies for law firms. Whether you’re targeting potential clients for personal injury claims, family law, corporate legal services or criminal defence, effective PPC campaigns can generate high-quality leads. However, before launching any campaign, setting an appropriate budget is crucial to ensure cost efficiency, high ROI and long-term sustainability. This guide will provide law firms with a strategic approach to budgeting for PPC campaigns, with a focus on competitive positioning and client acquisition.

Analyse Your Firm’s Objectives and Target Practice Areas

Begin by clearly defining the goals of your PPC campaign. Are you aiming to increase case enquiries, promote a specific legal service, or raise brand awareness within a geographic region? Each goal will influence the way you approach budgeting. High-stakes legal services like personal injury or medical negligence typically carry higher PPC costs due to stronger competition, requiring a correspondingly higher campaign budget. Stay focused on your most profitable practice areas when allocating funds to generate maximum return.

Research Competitive Keywords and CPC

Legal keywords are among the most expensive on platforms like Google Ads. It’s crucial to conduct detailed keyword research to understand the average cost-per-click (CPC) for your target terms. Use tools such as Google Keyword Planner, SEMrush or Ahrefs to identify what your competitors are bidding on and the expected CPCs in your target locations. This research not only helps you anticipate budget requirements but also allows you to identify lower-cost keyword variations or long-tail opportunities that could offer a more cost-effective route to client acquisition.

Set a Monthly Budget Based on Acquisition Goals

Establishing a monthly PPC budget should be grounded in the number of leads you aim to convert and the average cost per lead in your sector. For example, if your average cost per conversion is £150 and you’d like to receive 20 new enquiries per month, your starting budget should be around £3,000. Be sure to factor in the average conversion rate of your campaign landing pages and how effectively leads are being followed up by your intake team.

Allocate Budget Between Campaign Structures

The structure of your campaign will influence how funds are distributed. Consider segmenting ad groups by individual legal services, geographic regions or client personas. Budget allocation should prioritise the highest-performing areas once performance data begins to accumulate. Initially spreading your spend across several campaigns can help identify which services and keywords deliver the best results, allowing you to optimise the budget over time.

Consider Seasonality and Market Trends

Certain legal services may experience seasonal spikes—for example, divorce enquiries may rise in January, and personal injury claims may increase during winter months. Use historical data and industry insights to allocate additional spend at peak times to maximise exposure and conversion potential. Monitoring competitor trends can also help pinpoint when to increase or reduce your spend strategically.

Plan for Management and Additional Costs

When calculating your PPC budget, don’t overlook associated costs beyond ad spend. If you’re hiring an external agency or freelance PPC specialist, management fees will typically range from 10% to 20% of your ad spend. Alternatively, if your in-house team is running the campaign, consider the resource hours required to manage and optimise ongoing performance. Budgeting for landing page development, A/B testing, and analytics setup is also advisable to maximise the effectiveness of your spend.

Monitor Performance and Adjust Monthly

Your initial budget should not be set in stone. Reviewing key performance metrics—such as cost per conversion, click-through rates and bounce rates—on a monthly basis will help you refine your spend. Use these insights to shift budget towards more profitable services and pause underperforming keywords or campaigns. Legal PPC advertising is data-driven, and responsiveness is key to maintaining a productive and profitable campaign strategy.

Set Realistic Expectations

Understand that PPC for legal services is highly competitive and often subject to substantial costs before results are achieved. Law firms must be prepared for a testing period, potentially spanning several months, before hitting optimal performance. By setting realistic expectations and affirming budget allocations on a rolling basis, your firm can maintain a steady, predictable channel of client acquisition supported by transparent performance reporting.

Final Thoughts

A well-defined and carefully managed PPC budget is vital for law firms looking to compete online. By aligning your spend with your goals, continually monitoring campaign metrics, and refining your strategies based on data, you’ll position your firm for long-term success in a competitive digital space. PPC can be a reliable source of enquiries and case opportunities when approached with strategic planning and financial discipline.