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Google AdWords for Lawyers: Is $151 CPC Too Much?

Let's talk about Google advertising and legal cost per click (CPC). Most of you are familiar with this method getting traffic.  There is also quite a bit a talk about the costs associated, which are in many cases higher than in other industries. However, the cost per click within the legal industry can vary significantly and is driven by two factors:

  • Quality Score (landing page quality, relevancy of your ads, click through rates, etc.)
  • Ad Rank (your maximum CPC - to get your ad ranked, driven by your competition)

In essence, higher the competition, higher the CPC. What drives the competition? In simple terms, the opportunity to make money. Let's take asbestos for example, the cost per click for keyword "mesothelioma attorney" is $151 (see chart below). However, let's look at the opportunity. According to Thomson Reuters publication,  Westlaw Journal Asbestos reports the following average awards for asbestos related settlements:

  • $6.3 million in 2009
  • $17.6 million in 2010
  • $10.5 million in 2011

Apply a contingency fee in a range of 33-40% and get a decent revenue opportunity of $3.5-$4.2M. Assuming your sales funnel numbers work, does $151 CPC sound a lot now?

Take a look at the chart below. It illustrates the cost per click for various practice areas sorted by the search volume.

How much are you spending on advertising? How closely are you aligned with your peers?

How Do Lawyers Spend Their Money on Advertising? - An infographic by the team at Andres & Berger, P.C.

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