Word Of Mouth
This might not be the most effective but the conversions on referrals in regards to percentages of deals closed is quite high. Having great relationships with the clients that you are working with will lead to these referrals. If a person you are dealing with goes to a new company who needs hosting and there was rapport built there, the web hosting company can be sure to have that contract signed. The work that is done generally can be the best marketing that one could have as a company is only as good as the product that they deliver.
Banner ads are a great way to market your hosting company and it targets the demographic you are looking to attract very well. For example, if you generally specialize in web hosting for some kind of Ecommerce site then going to other sites and advertising is great. If you tend to host personal blogs, getting onto sites like Problogger or some other mecca of blogging would result in more conversions. Depending on what site that you are posting on, this could cost a large amount of money. Knowing where your target customers will be is important because an expensive banner ad without any return can break the marketing budget quickly.
Web hosting is not one of the most interesting things to talk about when people are not involved in technology. Partnering with some sort of other business is quite an easy way to pick up customers. For example, partnering with a web design firm is great as they will be creating the website and your company will be able to host it. Of course you could do this through an affiliate partnership which could have your business booming without having to spend a lot of money on advertising. Web hosting if done correctly within partnerships can be put in as a part of a package which makes money without having to have a salesperson pitch the services.
If you are going to market anything as far as online services and do not mention SEO then you are leaving out a giant part of marketing. Business owners often times will not leave the first page of Google if their web hosting isn’t their largest priority. Ranking high on Google is incredibly important as not ranking for certain keywords often times can be death for a business. This can be done through a partnership with an SEO firm in which they offer your services and they take over your SEO work.