There hasn\u2019t been a more exciting time for the global managed service providers (MSP). According to a <\/span>report from MarketsAndMarkets<\/span><\/a> (M&M), the global MSP market was valued at $242 billion in 2021 and is expected to reach $354.8 billion by 2026. This means a compounded annual growth rate (CAGR) of 7.9 percent during the forecast period, riding primarily on the rise in demand for secure IT infrastructure owing to the COVID-19 pandemic.<\/span><\/p>\n \u201cOther than obviously the medical fraternity, IT was the hero when COVID hit and afterwards. As every business had to go remote, they leaned on inhouse IT departments or outsourced IT service providers<\/a> to help them do that,\u201d says Andrew Down, director of sales (IT channel, MSP\/VAR) at Vendasta.<\/span><\/p>\n However, despite the market growth, MSPs are still facing an enormous challenge with marketing<\/a> and sales efforts required for business growth as most of their business is from referrals. About 53 percent of MSPs considered marketing and sales a top challenge, but on average spent less than 2 percent of their revenue on marketing activities, the M&M study noted. \u201cThe main problem on the sales and marketing front is around lead generation<\/a>, with several MSPs finding it difficult to get a strategy that delivers decent opportunities,\u201d it says.<\/span><\/p>\n[et_pb_section global_module=\"117574 \"][\/et_pb_section]\n [\/et_pb_text][et_pb_text admin_label=”Why MSP marketing?” _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n Why would MSPs be struggling to be heard if their services are hugely in demand?\u00a0<\/span><\/p>\n This is primarily because of the sheer competition. The <\/span>Microsoft Partner Network<\/span><\/a> alone has 64,000 partners, vendors and service providers that build or sell solutions based on Microsoft products. These partners include systems integrators, original equipment manufacturers, independent software vendors, value-added resellers, telecommunications companies, Internet hosting services, marketing agencies<\/a>, and resellers.<\/span><\/p>\n And that\u2019s just counting one partner network.<\/span><\/p>\n Further, the MSP market itself is in a churn. With the pandemic accelerating the ongoing digital revolution many times over, businesses are increasingly looking to MSPs to help them get there. Over 90 percent of businesses today use <\/span>some type of cloud technology<\/span><\/a>, while the global cloud computing market is growing at 18 percent annually and expected to touch\u00a0<\/span>$623.3 billion by 2023<\/span><\/a>. In this background, MSPs have no choice but to offer services tailored to what their customers want, and at times even become more innovative to meet the market demand.<\/span><\/p>\n According to Tech Target’s Guide to Building and Executing an MSP Business Model, most MSPs rely on with word-of-mouth promotion and customer referrals to get off the ground. At some point, however, MSPs tend to reach a plateau in which new sales just keep up with the natural rate of customer attrition. MSPs must develop a marketing plan\u00a0to promote their value proposition, maintain a healthy sales pipeline and\u00a0keep the company growing,<\/p>\n \u201cIf you go back a few years, MSPs really had it easy because a lot of companies were using servers and computers in their offices and they still needed to connect to the Internet. And while they might have been using a couple cloud apps, a lot of that was still within the network. So typically, the MSP would handle the licensing for Windows, the installation, the maintenance, the backups\u2026 Basically, they were the one-stop shop for everything that that business needed,\u201d says Vendasta Special Projects Advisor Chris Fossenier.<\/span><\/p>\n But that\u2019s a shrinking market now with the onset of cloud technology, and is not clearly defined yet for a lot of MSPs. \u201cAlso, it’s not going to be the same, not something they can fully control like they did in the old architecture,\u201d he adds.<\/span><\/p>\n \u201cIn today\u2019s competitive world, MSPs have an unenviable challenge of trying to stand-out from the crowd. There are just so many competitors offering similar services to the same market. So how does one get their message across to potential customers?\u201d says Down. He would know, having spent many years serving the VAR\/MSP\/IT channel space and even running his own MSP business.<\/span><\/p>\n ALSO READ: What are MSP Marketing Challenges and Six Ways to Fix Them<\/strong><\/a><\/p>\n A well laid-out marketing strategy<\/a> is one of the missing pieces in an MSP\u2019s portfolio today. Not only do they have to find new avenues to bring in business by repositioning themselves in the market, but they also need to broaden their offering base, which again needs proper marketing services.<\/span><\/p>\n Fossenier agrees. \u201cThere are some MSPs who do a good job of positioning themselves and being very specific about their niche or what they offer. In most cases, they are working pretty much off word-of-mouth references. However, to stand out among the competition, they need to position themselves in the market more aggressively. You can focus on testimonials, customer reviews, social media and other such low-hanging fruit. That helps them come up on local Google search,\u201d he says.\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Why is MSP marketing different from other B2B marketing?” _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n In its simplest form MSP marketing is the process of generating interest with different types of marketing activities. MSP marketing essentially follows the same principles of other B2B marketing \u2013 identifying the ideal customer profile and buyer personas, a well laid out website, creative advertisements and branding materials, emails, social media<\/a>, blogs, ebooks, etc.\u00a0<\/span><\/p>\n However, to understand why MSP marketing is different from standard B2B marketing, one must understand the landscape. Simply put, a managed service provider or MSP<\/a> is one who manages the IT infrastructure of a business on a pay-per-use or subscription model. An MSP can supplement a company\u2019s inhouse IT department; or provide everything from hardware purchase to setup and installation and management, to managing software and cloud infrastructure.\u00a0<\/span><\/p>\n MSPs come in all shapes and sizes and can\u2019t be lumped together. They range from the biggest brands in the business, like IBM, Accenture, Cognizant etc, to telcos to your local level IT service provider.<\/span><\/p>\n Naturally, there are distinct differences between small, medium and large MSPs in terms of their market outlook and behavior, which is why they need different marketing strategies.<\/span><\/p>\n \u201cMSPs that faced the new reality by investing in their digital presence with digital marketing activities like website relaunches, social media content and video content are now reaping the fruits of their labor, while laggers are facing the daunting prospect of a steeper climb as time passes,\u201d adds Ayan Adam, founder of<\/span>\u00a0<\/span>CX Atelier<\/span><\/a> and a partner marketing evangelist.<\/span><\/p>\n ALSO READ: Cybersecurity for Small Businesses: Why Managed Security Service Providers are the Solution<\/strong><\/a><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Finding your niche” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n In such a wide-ranging pool, it is extremely difficult to stand out, particularly if you are a small MSP. \u201cLet us not forget, a majority of MSPs, if we [look at] sheer numbers, are SMBs themselves. So, they need some of the similar marketing services that other SMBs need to stand out in the market,\u201d says Down.\u00a0\u00a0<\/span><\/p>\n But then, it is also extremely important for MSPs to know what they specialize in, so that they can focus their energies and expertise on solutions, resources and funding around those areas.\u00a0<\/span><\/p>\n Creating such a strategy is more difficult than it sounds.\u00a0<\/span><\/p>\n Since MSPs belong to the world of IT, first they need to understand the IT industry\u2019s dynamics. But again, \u201cbecause this is a competitive space, it\u2019s unwise to spread your digital marketing<\/a> strategy \u2014 and your business model at large \u2014 thin across many sectors. Rather, you should pick a vertical or a market segment, and focus in on a niche within that segment,\u201d <\/span>writes Zamir Javer, CEO of Jumpfactor Marketing<\/span>.<\/span><\/p>\n This could be tricky and not too easy, especially for small and medium MSPs who may want to bag every deal.\u00a0<\/span><\/p>\n Once they have identified their niche, then comes the question of identifying the target audience. An MSP must keep in mind who they are trying to sell to \u2013 the CEOs, presidents or Vice Presidents or IT heads of businesses. So, the standard keyword research may not work for their marketing campaigns or pitches \u2013 the messaging must be crafted to appeal to the senior leadership of organizations and not the general reader.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Being the trusted local expert” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Since most small and medium-sized businesses (SMBs) tend to depend on the local experts, for a local MSP it is important to be aware of the unique challenges that come with positioning themselves as a fully managed IT service<\/a>. At the same time, they also must realize the unique position they are in \u2013 that they CAN position themselves as the trusted local expert in their markets.\u00a0<\/span><\/p>\n In one way, MSP marketing is all about building trust.\u00a0<\/span><\/p>\n The trust that MSPs have with their partners and customers is staggering \u2014 they are often given the passwords and access to client data. That level of trust is paramount to a strong\u00a0relationship and being perceived as the trusted local expert.<\/span><\/p>\n \u201cBusinesses hire MSPs to provide the right solutions for their fast-changing, developing needs. Since a significant number of these are small and medium-sized businesses (SMB), every deal matters. Taking on a job and not doing it right could lead to disastrous results for your client,\u201d says Down.<\/span><\/p>\n A successful MSP needs to be always proactive, and not be a \u201cbreak fix\u201d. The best MSPs solve a problem even before the client knows it exists.<\/span><\/p>\n Thus, the marketing materials for MSPs have to convey that message \u2013 that they are the trusted local expert in their community. This is necessary not only to retain existing customers but also to build a new customer base.<\/span><\/p>\n <\/p>\n [\/et_pb_text][et_pb_text admin_label=”Traditional vs digital marketing” _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n Other than the right messaging, the most successful marketing tactic for MSPs should be a right balance of traditional and digital marketing. This is largely due to the background that they come from.\u00a0<\/span><\/p>\n The MSP landscape, because they traditionally served local businesses, was an industry that has been relying heavily on trade shows, face-to-face meetings, and in-person events. But now \u201cthe price of \u2018digital debt\u2019 is getting more exorbitant by the day as traditional ways of engaging with clients like in person events are becoming less and less reliable with the new [COVID] variants and reclosures,\u201d says Adam.<\/span><\/p>\n This means while inserting an ad in the local directory or the newspaper should still work, you also need to pay close attention to build your local SEO to figure in local searches or focus on social media promotions so that your potential buyers can find you.<\/span><\/p>\n The sharp turn to a digital-first world that started in 2020 has now established itself as a permanent trend, and Adam says there is an acute contrast between MSPs that successfully embraced digital mediums and those that didn\u2019t.<\/span><\/p>\n Beyond the obvious digital promotions, there are marketing automation tools<\/a> that were already gaining popularity before the pandemic. Automation tools help businesses gather intelligence about how customers respond to online experiences, who are visiting their websites, and assessing how the audience is engaging with the marketing content. Based on these insights one can create online ads, social posts or email marketing campaigns specific to new customers versus returning customers. Automation tools can also pull out past purchase histories to give insights on opportunities to cross-sell or upsell specific customer segments, instead of businesses having to manually sort things out. To keep ahead of the competition, MSPs must adopt some of these automation solutions.<\/span><\/p>\nWhy MSP marketing?<\/h2>\n
Why is MSP marketing different from other B2B marketing?<\/h2>\n
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<\/a><\/p>\nFinding your niche<\/h2>\n
Being the trusted local expert<\/h2>\n
![\"MSP](\"\/wp-content\/uploads\/sites\/6\/2025\/07\/MSP-marketing.webp\")
<\/a><\/p>\nTraditional vs digital marketing<\/h2>\n
![\"MSP](\"\/wp-content\/uploads\/sites\/6\/2025\/07\/digital-marketing.webp\")
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