Navigating the world of digital advertising can be daunting for Managed Service Providers (MSPs). One of the most common points of confusion is budgeting.
You know you need to invest in marketing, but how much is enough?
And how much is too much?
Understanding the landscape of MSP Marketing services is the first step.
Recently, we heard from an MSP marketing manager who was getting quotes from agencies suggesting a combined spend of over $10,000 per month on Google and LinkedIn Ads.
Their immediate reaction was sticker shock, asking: “Is this normal, or is it excessive for an MSP?”
It’s a great question, and the short answer is:
For most MSPs focused on direct lead generation, a $10,000+ monthly spend, especially split across platforms like Google and LinkedIn, is likely on the high end and potentially excessive. Let’s break down why.
Finding the Sweet Spot for Google Ads
Google Ads is often a primary focus for MSP lead generation because it captures users actively searching for IT services via platforms like Google Search. Based on our experience working with hundreds of MSPs:
- Typical Effective Range: A common and effective budget for Google Ads typically falls between $2,000 and $4,000 per month.
- Scaling Up: Larger MSPs in competitive markets or those pursuing aggressive growth might push this to $5,000 – $8,000.
- Starting Point: Smaller MSPs or those new to paid ads might start effectively around $1,500 per month.
Spending significantly above these ranges doesn’t automatically guarantee better results. There’s often a point of diminishing returns where the cost per lead starts to increase dramatically.
The LinkedIn Ads Factor
Adding LinkedIn Ads into the mix complicates the budget question. While potentially useful for brand awareness or very specific campaigns, LinkedIn Ads generally have:
- Higher Costs: Cost-per-click and cost-per-lead tend to be higher than on Google Search.
- Lower Direct Lead Gen Intent: Users on LinkedIn are typically not in an active “buying” mode for IT support in the same way someone searching Google is.
- Different Goals: It’s often better suited for branding or promoting specific content (like webinars) rather than immediate lead generation for core MSP services.
Trying to split a budget, especially a smaller one, between Google’s high-intent search and LinkedIn’s more passive environment often dilutes the impact on both platforms. A budget of $1,300 split between them, for instance, is unlikely to yield significant results on either.
Why $10,000+ Might Be Overkill
- Diminishing Returns: As mentioned, pouring more money into ads doesn’t always scale results linearly. You might capture most of the available high-intent search traffic within the $2k-$5k/month range for many local markets.
- Focus is Key: It’s usually more effective to concentrate your budget on the platform most likely to deliver qualified leads (often Google Ads for MSPs) and master that channel before spreading resources too thin. Developing sound MSP Marketing strategies involves making these focused choices.
- Efficiency: An agency should be able to demonstrate how they can efficiently manage a budget within the typical ranges to generate leads, rather than simply suggesting a very high spend. High quotes might sometimes indicate inefficiency or an attempt to maximize their commission rather than your ROI.
- Alternative Investments: Could a portion of that $10,000+ be better invested in strengthening SEO, improving the MSP website, or developing valuable content assets that provide long-term value?
The Bottom Line
While every MSP’s situation is unique (considering market size, competition, growth goals), a $10,000+ monthly ad spend solely for Google and LinkedIn Ads should raise questions. It’s significantly higher than what most MSPs typically need to spend for effective lead generation via these channels.
Before committing to such a budget, ask potential agencies detailed questions about expected lead volume, cost per lead, target keywords, platform strategy (why LinkedIn?), and how they plan to demonstrate ROI. Often, a more focused, moderate budget starting in the $2,000-$4,000 range for Google Ads is a more realistic and effective starting point. You can always scale up if the results justify the increased investment.
