Although there are several silver linings in the fourth quarter 2011 results released by content firm Demand Media, the bottom line is that the six-year-old outfit is still reeling from changes made last spring to Google’s search algorithms. The Silicon Valley giant’s much publicized adjustments, nicknamed “Panda,” chunked out 25 percent of Demand’s Web traffic and four-fifths of its stock price.
Among Demand’s initiatives: a greater emphasis on videos and photos, as well as the type of content such as humor that’s more likely to be shared on social networks such as Facebook.
“We had built an ecosystem based on what people were looking for using search engines,” said Rosenblatt, who had once been chairman of Myspace. “Now our customers want mobile, social and video content, and we’re adapting to that.”
In base rate, article pay terms, Demand’s stock is currently trading at about a third of what they pay writers for a how-to-riffic item.
[Photo courtesy Demand Media]