Given the economic backdrop of 2022 and recession predictions for 2023, you might think that today's accounting firms would be cutting back on marketing budgets. According to CPA Site Solutions' "2023 State of Accounting Marketing Report," most are planning to increase their marketing budgets in 2023 or keep them the same.
The data is part of the report's essential insights into the current state of accounting firm marketing and where firms are headed in 2023.
In fact, the findings align with recent findings by Gartner showing the average marketing spend for financial service companies increased in 2022 (10.4% of company revenue, up from 7.4% in 2021).
Evidencing the increasing shift by firms toward more digital marketing, the report examples a dramatic shift in how firms view word-of-mouth advertising, which firms have traditionally viewed as the best way to attract new clients. Where 80% considered word of mouth most important, favor dropped by half (40%) in the 2023 report, ranking third behind online reviews (42%) and websites (49%).
Paralleling firm growth trends in digital marketing, the report also shows that firms' average revenue grew in 2022. Where 10% of surveyed firms reported annual firm revenue of $500,000-$750,000, 25% reported the same annual firm revenue in the 2023 report.
As busy as firms are (particularly during tax season), the report unsurprisingly shows the number of surveyed firms using an online marketing provider has more than doubled to keep their marketing goals on track.
This upward trend aligns with evidence showing that even in economically difficult times, there's historically been a demand for accounting services by businesses and individuals. Businesses rely on accountants to help them survive and thrive, and individuals want to ensure their investments are stable.
Adding to this, trust in accounting and financial professionals remains high. Despite low public trust toward other industries, accountants ranked sixth in Statista's recent rating of "America's Most & Least Trusted Professions," just below nurses, medical doctors, pharmacists, high school teachers and police officers.
As busy as firms are (particularly during tax season), the report unsurprisingly shows the number of surveyed firms using an online marketing provider has more than doubled (23% in CPA Site Solutions' 2022 report to 55% in CPA Site Solutions' 2023 report) to keep their marketing goals on track.
You can download the full report HERE.
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