World's largest law firms to be 'lawyerless' within five years

Within the next five years the world's largest law firms will not employ its own lawyers, is a bold prediction by the UK's leading marketing collective.

In its latest white paper on advertising in the personal injury and clinical negligence market, First4Lawyers cite Uber, Facebook, Amazon, and Airbnb as examples of successful businesses that neither own their own vehicles or content nor shops or real estate.

'Something interesting is happening. So is it within the realms of possibility that there will be no lawyers in the world's largest law firm? Of course, this firm will not be providing the legal services itself, but it could have a huge grip on the market.'

Avvo, the US's leading online legal marketplace connecting consumers and lawyers, recently secured a $71.5m investment. More than 225,000 lawyers from across the US now participate on Avvo, which generates over 650,000 contacts every month.

The marketing collective also predicts the three big investments in legal will be people, big data, and content, with a focus on the customer experience.

An analysis of around 500 law firms and claims management companies (CMCs) by First4Lawyers found the sector has invested £267m in marketing between 2010 and 2014.

Research showed that, in 2010, firms and CMCs spent £27m in marketing. Yet this rose to £76m in 2014, an increase of 182 per cent. Claimant lawyers spent a record £208,000 a day advertising personal injury and clinical negligence services last year alone.

First4Lawyers's white paper says the largest driver of this increase was a rush of solicitors looking to get a foothold in the market and raise their profile as traditional referral networks closed in the wake of the referral fee ban in 2013.

However, while spend has risen dramatically, the number of firms and CMCs marketing increased by just 14 per cent. The average spend per business rose from £128,117 in 2010 to £315,810 in 2014, a 147 per cent increase. In each year, the top ten spending firms accounted for 85 per cent of the total.

With law firms only representing 30 per cent of the overall pot, First4Lawyers says those firms aiming to become a top ten advertiser would need to spend over £1m during 2015.

TV advertising is seen as providing the best return on investment for firms. Advertising through this medium accounted for 45 per cent of media spending between 2010 and 2014.

By contrast, digital marketing is thought to offer instant response and the flexibility to change campaigns with more agility, depending on market conditions.

John van der Luit-Drummond is deputy editor for Solicitors Journal
john.vanderluit@solicitorsjournal.co.uk | @JvdLD