Page 16

Birmingham Bar Association - Bulletin Fall 2017

Marketing Deanna Power Using Cost Per Case to Improve Your Firm’s Marketing Strategy Cost of Ad Campaign / Number of New Clients = CPC The internet is full of thousands of “foolproof ” ad methods that you can use to market your firm. But when every article claims that a certain form of advertising is the “absolute best” to use, they aren’t telling the whole truth. Every firm is different and should be treated as such, utilizing whatever advertising strategies prove most beneficial for their location, demographic, and budget. So how can you determine which method of advertising is best for you? Most digital forms of advertising come already programmed to help you analyze the kinds of people viewing and using your ads. However, for traditional forms of legal advertising (TV/radio commercials, magazine ads, billboards, etc.) the cost-per-case method is a great way to begin. Understanding Cost Per Case The cost per case method uses a simple formula to help you determine the success of an ad campaign. The formula compares a) the amount spent on an ad campaign, with b) the amount of new clients attracted during the campaign period, to get c) the cost to bring in each new client, or CPC. It’s as simple as follows: Cost of Ad Campaign / Number of New Clients = CPC The lower your CPC, the more money your firm saves by utilizing the ad methods that work best for you. This method can be used on any traditional form of advertising, and is best used over time to get the best average results — different factors such as location or even time of year can impact your numbers, so it is best to get as much data as possible. To see how it works, let’s research a hypothetical billboard advertisement in Birmingham, AL and apply what we know. Using CPC With a Billboard Ad Lamar Advertising, the largest billboard provider in the US, lists all billboard spaces currently available in Birmingham. Since downtown Birmingham sees constant slow-moving traffic around its famous “Malfunction Junction,” we will select a billboard here for our example, along the I-65S. A standard 4-week ad at this location would cost $4,500 with a potential 751,600 impressions (people that see your advertisement). While this seems like a massive amount of views, it is again important to remember that the vast majority of people who see your ad will not need an attorney. A realistic estimate would be that 15 people of this grouping would end up contacting your firm to work with an attorney and have viable claims that you can take. If we plug these hypothetical numbers into our equation, we see that: Cost of Advertisement ($4,500) / 15 (new clients) = $300 (CPC) In our example, a 4-week advertisement at this Birmingham location would cost you around $300 per new client. But is this a good CPC? It all depends on your area of law. 16 Birmingham Bar Association


Birmingham Bar Association - Bulletin Fall 2017
To see the actual publication please follow the link above