Effect of Pay Per Click on Small Businesses: A Case Study of Jesmond Dene Hotel

This dissertation analyzes the effect of pay per click on small businesses, using Jesmond Dene Hotel as a case study. It explores the concept of pay per click advertising, its advantages, and its role in promoting business services. The study also discusses the challenges faced by Jesmond Dene in developing pay per click for their business.

DISSERTATION
ON
EFFECT OF THE PAY PER CLICK TO SMALL BUSINESSES: A CASE
STUDY OF JESMOND DENE HOTEL

CHAPTER 1 INTRODUCTION
The main aim of the present research study is to analyze the effect of pay per click on
business entities. Regarding this, the study has been conducted on Jesmond Dene Hotel which is
a three star hotel operating business in London. In this realm, discussion has been included about
the concept of Pay Per click advertisement on business organizations (Shipley and Kleiner,
2005). Along with that, researcher has also focused on advantages and role of pay per click in
promoting business services. The chapter of introduction provides a basic overview of the topic
along with the aims and objectives. Besides this, researcher has also stated background along
with the rationale for which the study is being conducted. Lastly, structure of all the chapters are
discussed briefly in the research work.
1.1 Overview of the topic
Pay Per Click is a cost per click advertisement model through which advertiser can
publish the adverstiment on a website through different networks and sources. The tool is also
commonly associated with first tier search engines in which companies and customers can bid
for the products and services they need to purchase. It is also an internet marketing formula that
is used to price online adverstiment. In such programs, the online advertisers pay internet
publishers to promote the business upon PPC regardless if the sale is made or not. In pay per
click in search engine advertising, the advertiser would typically bid a keyword so the PPC rate
changes (Kent, 2006).
The tool is also useful for the purpose of catering searches and advertisers
simultaneously. It also compromises their user base while on the other hand, it provides them
another stream of revenue. However, it has also been observed that Google rewards are available
for the companies for the purpose of promoting the channel for different products and services
(Thome and et.al., 2014). Hence, it is clear that it is not about bidding; but it is far more than a
source of promoting the business products and services. Thus, the study has described the
benefits of pay per click on customer base and along with that, researcher has also stated the way
through which online business prospects can be managed suitably.

1.2 Rationale of the study
The present research study has been made with an attempt to highlight the concept of pay
per click adverstiment along with its benefits to business entities. Pay per click is an online
advertising model in which business entities display advertisements for their goods or services at
the time when people search for things on online sources. Most of the time, Pay per click refers
to a paid search advertising or search marketing that is the practice of online advertising. Well
managed and optimized PPC campaigns can be considered a cost effective form of advertising
because it involves several activities that changes the promotional values of business practices.
Unlike traditional forms of advertising, Pay per click is designed to reach individual site visitors
who have already expressed interest in a product or service (Trehan, 2007). Thus, through the
basic concept, it can be said that pay per click is not just a source of promoting and advertising
the products; but also it aids in creating customer base on higher extent. In this respect,
researcher has also discussed the complimentary aspects of pay per click on inbound marketing
efforts. This is also essential for the purpose of maximizing the business success facets (Tavares
Thomé and et.al., 2012).
1.3 Research aims and objectives
Research Aim
The main aim of this research proposal is to analyze the effect of the PPC (pay-per-click)
to small businesses- A case study of Jesmond Dene Hotel
Research Questions
 What is the meaning and significance of using pay per click advertising for small and
medium business enterprises?
 What are the different challenges that Jesmond Dene might face while developing
1.4 Research questions
 To understand the meaning and significance of pay per click advertising
 To analyze the advantages of PPC for small business enterprises
 To analyze the challenges that Jesmond Dene face while developing PPC for their
business.

1.5 Structure of all the chapters
The subsequent dissertation has been prepared in a specific manner with systematic
structure.
 Chapter 1 is Introduction in which researcher has given overview about the topic and
along with that, discussion is also made regarding the benefits of pay per click to business
entities. Introduction is also the major section through which the study can be made
comprehensive. Thus specific data has been used in the research study (Hoy, 2009).
 Chapter 2 is about Literature review in which researcher has explained each and every
aspect of the study in detailed manner. In order to complete the research work, researcher
has used secondary sources wherein books, journals and articles have been reviewed.
Thus, viewpoints of different scholars and authors have been taken in the study for
specifying the relevancy of the research work.
 Chapter 3 is made for research methodology in which researcher has described different
tools and techniques through which aims and objectives of the study can be
accomplished. Hence, different methodologies will be taken into account for the purpose
of completing the research study (Flick, 2011).
 Chapter 4 includes data analysis in which researcher has used Qualitative technique to
analyze the impact of pay per click on small business entities. In this chapter,
questionnaire has been evaluated with the help of Thematic analysis and along with that,
graphs, charts and tables are also prepared for the same context.
 Chapter 5 is all about conclusion and recommendation in which the study has been
summarized in appropriate manner. Further, recommendations are also stated in terms of
improvement.

CHAPTER 2 LITERATURE REVIEW
Pay Per Click Advertising
According to Shipley and Kleiner, (2005), Pay per click is termed as an important search
engine like Google and Bing that allows the businesses and individuals to buy listings in their
search results. Generally, these listings appear with the non-paid organic search results. The
search engine is then paid every time whenever the user clicks on the sponsored listing. These
advertisement sports are sold in an auction where in the customer can bid for maximum amount
as per the click on the advertisement. It is referred as the major source of digital marketing which
can generate traffic right away. The process is faster with some of the systems like Google
AdWords where people can generate traffic within a few minutes of opening an account.
However, on the other hand, Hoy (2009), argued that pay per click advertising can run up costs
extremely quickly. Further, author also contended that it is easy to get caught up in a bidding war
over particular keyword which could end up spending more as compared to the capacity of
return. Thus, it can be said that Pay Per Click is a little discouraging aspect especially for small
businesses who have no idea about the techniques that should be used in such sort of
adverstiment campaign.
Pay per click is also referred to as cost per click. It is regarded as internet marketing
model that assist in directing traffic to websites wherein the advertisers make payment to the
publisher when the ad is being clicked. PPC is considered as online advertising model wherein
the advertisers make display of ads for their goods or services while user people are searching for
things online and make entry of the particular queries into search engines (Tavares Thomé and
et.al., 2012). Advertisers are just being charged when the users clicks on the ads thus it is
regarded as pay per click. This is associated with first tier search engines. With search engines
advertisers makes bidding on keyword phrases that are relevant to the target market. Pay per
click in addition to the cost per impression as well as cost per order are used for the purpose of
making assessment of cost effectiveness and profitability of the internet marketing. Pay per click
possess advantage over the cost per impression in which it tells something regarding the
effectiveness of advertising. Clicks are regarded as the measures of attention as well as interest.

Process of Pay Per Click
Pay Per Click is an online marketing and advertising formula wherein the advertiser does
not pay a fee to place an advert; however it pays a certain amount of money each time when
people clicks on their ad and is taken to their website. However, in order to operate the process,
business entities have to consider on appropriate use of words and phrases. All the steps needs to
be suitably followed so that products can be sold effectively at the market place.
Identification of the product that is ready to sell: At the initial stage, it is essential for
the business entity to identify the product that needs to be sold through digital marketing
techniques. Here, at this stage, it is essential for the organization to decide which ones should be
promoted and from which source (Trehan, 2007). Decisions related to price and other offerings
of the product should be taken at this stage only. Appropriate searching is required so that
customers can get suitable products from the business entity. This needs to be more competitive
so that competitors can also bid for the same.
Keyword research and PPC: Keyword research is required so that specific product can
be found out. Search Engine Optimizers are mainly concerned with keywords; hence different
matches should be included so that suitable products and services can be searched upon. Another
very popular technique is to use broad and phrase matches with a lot of negative keywords. In
order to prevent excessive results, it is crucial for the person to eliminate wastage of time so that
specific results and outcomes can be derived.
Build PPC campaign piece by piece: In order to sell any product or service, it is vital for
the business entity to develop a PPC campaign so that specific idea can be given to people
regarding the availability of products and services (Shipley and Kleiner, 2005). For example-
specific ad groups are required to be formed so that products can be promoted at market place
with suitable strategies and techniques. Hence, the generic ad should start with appropriate
campaign so that each and every activity can be conducted effectively.
Build specific landing pages: Each of the product should have own pages with specific
description button so that customers can identify the product and service. Hence, detailed
decision is required to be taken in this respect.

References
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Industrial Management & Data Systems. 114(5). pp.678 – 695
Trehan, M., 2007. Advertising and Sales Management. FK Publications.
Flick, U., 2011.Introducing Research Methodology: A Beginner's Guide to Doing a Research
Project. USA: SAGE.
Hoy, K.W., 2009. Quantitative Research in Education: A Primer. SAGE.
Kent, P., 2006. Pay per click search engine marketing for dummies. Indianapolis, IN: Wiley
Pub., Inc.
Shipley, C. J. and Kleiner, B. H., 2005. Compensation management of commissioned sales
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