June 27, 2006
ALA Report Says Law Firms that Advertise Have Higher Growth Rates
ALA Media has released a report, An Analysis of Advertising and its Effect on Law Firm Revenue Growth, which is downloadable via its website. It states
Firms That Make A Commitment To Advertising Have Higher Growth Rates. Using the rigorous definition of advertising, the 87 AmLaw 200 firms that spent at least $10,000 in advertising in any three of the last five years have an average Compound Annual Growth Rate (CAGR) in their gross revenues that is 2.2 percentage points higher than their non-advertising counterparts (9.3% vs. 7.1%).This pronounced gap in CAGR translates into substantial revenue differentials over the five year period . And, the 42 firms that spent at least $50,000 in advertising in at least three of the last five years had even stronger growth rates than the firms spending at the $10,000 level (9.8% vs. 9.3%) .


