Dissertation: PPC Effect on Small Businesses, Case Study

This dissertation investigates the effect of Pay Per Click (PPC) advertising on small businesses, with a specific focus on Jesmond Dene Hotel. The study explores the concept of PPC, its advantages, and the challenges faced by small and medium-sized enterprises (SMEs) in implementing PPC campaigns. The research includes a literature review covering PPC advertising processes, mechanisms, advantages, and challenges. The methodology section details the research philosophy, approach, design, strategy, data collection methods, sampling techniques, data analysis plan, and ethical considerations. The data analysis chapter presents findings using thematic analysis and visual aids such as graphs and tables. The conclusion and recommendations summarize the study's key findings and suggest areas for improvement. The dissertation aims to analyze the significance of PPC, advantages for small businesses, and the challenges faced, offering valuable insights into the effectiveness of PPC as a marketing tool.

DISSERTATION
ON
EFFECT OF THE PAY PER CLICK TO SMALL BUSINESSES: A CASE
STUDY OF JESMOND DENE HOTEL
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EXECUTIVE SUMMARY
With time, there are many changes that has taken place within marketing of products and
services. In this context, services and products that are delivered online are more effective when
compared with any other tool. In this contex, pay per click can be determined as a business
model in whic advertisement is placed of the products and services that organization is willing to
present to customers. Present report is about Jesmond Dene Hotel which is aiming at making use
of pay per click advertisment in order to attract more and more customers. As per the findings, it
has been identified that pay per click is one of the effective source of advertisement and it
enables to develop strong customers base. Further, one of the advantages is that it is cost
effective as cost depent upon the type of additional services that are being used for pay per click.
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TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION..............................................................................................................4
1.1 Overview of the topic............................................................................................................4
1.2 Rationale of the study............................................................................................................5
1.3 Research aims and objectives................................................................................................5
Research Aim..............................................................................................................................5
Research Questions.....................................................................................................................6
1.4 Research questions.................................................................................................................6
1.5 Structure of all the chapters...................................................................................................6
CHAPTER 2 LITERATURE REVIEW....................................................................................................8
Pay Per Click Advertising...........................................................................................................8
Process of Pay Per Click..............................................................................................................9
PPC mechanism.........................................................................................................................10
Advantage of pay per click advertising for small business enterprise.......................................12
Challenges in creating PPC advertisements..............................................................................14
Negative effects of using PPC for small enterprises.................................................................16
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................19
3.1 Introduction..........................................................................................................................19
3.2 Research philosophy............................................................................................................19
3.3 Research Approach..............................................................................................................20
3.4 Research Design..................................................................................................................21
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3.5 Research strategy.................................................................................................................21
3.6 Data collection.....................................................................................................................22
3.7 Sampling..............................................................................................................................23
3.8 Data Analysis Plan...............................................................................................................23
3.9 Ethical considerations..........................................................................................................24
CHAPTER 4 DATA ANALYSIS.........................................................................................................25
CONCLUSION..............................................................................................................................37
RECOMMENDATION.................................................................................................................39
REFERENCES..............................................................................................................................43
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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.
My passed experience at west-end Company involved many of marketing techniques and
strategies. One of the many techniques was using Pay Per Click, which was the main way of
making profit for the company, the manger uses such techniques to promote the firm among
there competitions. By using the Pay Per Click method or techniques the firm had made a head
step to other big firm such as Adison Lee. Choosing this particular marketing strategy invoked
my imagination to understand the affect that will have to small companies such as West-end Car
company and to find out whether worthwhile implement it or not. The firm was making good
profit before the American company entered the UK market in a name of Uber. The company
could not survive with the new technology that the Uber implemented. As consequences the firm
closed down last year despite of using other techniques beside Pay Per Click.
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
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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).
Problem statement
The entire research work has been focusing on using pay per click mechanism; hence in
this respect Jesmond Dene Hotel is also emphasizing on the use of pay per click technique. In
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current scenario, pay per click technique is being used as a source of promoting the products and
services in the market place. Thus, the main emphasis of the research work has been laid on
Jesmond Dene Hotel which is using pay per click technique.
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
The research questions are being made for the purpose of analyzing significance to
companies using pay per click advertising technique. As business entities are using the
techniques for different purposes; therefore is crucial to ascertain the benefits of the same.
Hence, the study is being proposed for the same aspect.
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).
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 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.
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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.
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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. For instance- Jesmond Hotel needs to ascertain the
products which will be promoted through pay per click advertisement. This could include
promotion of new packages for accommodation.
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
(Horváth, Glatz and Vígh, 1998). 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.
Customers can be provided different search variables through which content for the service could
be promoted. This will also enhance promotion aspects of the hotel.
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
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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.
Ad variation: PPC also allows the business entity to have ad variations which can also
assist in increasing the CTR. This also assists in producing different types of ads wherein
business can monitor any patterns that shows which ad is being clicked and which is not (Trehan,
2007).
Report and analytics: In this business entity can use Google Analytics or Yahoo Web
Analytics for the purpose of looking at the SEO and PPC keywords. Herein, business pays much
attention towards the bounce rates because that is highly crucial indicator of PPC. High bounce
rate shows high CTR rate and this also defines if the business needs to work on landing pages.
Refining the campaign: At this stage, business entity needs to look towards the campaign
and according to the areas of improvements, the campaign should be refined in possible areas
(Li, Yan and Li, 2016). It is an interactive process with the end users who use PPC to get people
in the landing page and use analytics to learn what they do after they get there.
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The process seems to be highly useful for the business entities since through that each
and every aspect of the promotional values can be managed effectually. Moreover, in this respect
it can also be said that the process is significant in terms of informing the customers about the
products and services. It is also considered as important since that aids the customers to earn
money merely by clicking on the advertisement. Every company adopts a specific procedure in
this area so that promotional values could be underpinned.
PPC mechanism
According to Horváth, Glatz and Vígh, (1998), the simple mechanism for PPC
advertising is to get paid for every click on the advertisement. In this context, search engines
provide the opportunity to advertiser to bid for listing on the page of result. With these bid the
positioning of ads is decided. With this respect, search engine get benefited with this with
money for every click they create in the site. On the other hand, Sauer, Schreiber and
Forchhammer, (2001), argued that this type of advertising is complex but it is highly effective in
raising the traffic inflow and it also enables to generate high revenue. In this context, it can be
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