In a statement released yesterday, Demand Media reaffirms the financial outlook for fiscal year 2011 given on February 22, despite the Google algorithm change which took place in late February.
The release says, “Recent search engine algorithm changes have negatively impacted search driven traffic to some of our websites, including eHow.com, resulting in moderately lower year-to-date page view growth for the company’s owned and operated Content & Media properties compared to page view growth rates before the algorithm changes.”
Demand Media has been known less than affectionately as a “content farm”, employing thousands of freelancers to produce short articles designed specifically to rank high in search engines. Writers are paid $15 for the majority of these articles. The algorithm change is targeted at, “…publishers who[se] low-quality sites which are low-value add for users, copy content from other web sites or sites that are just not very useful. At the same time, it will provide better rankings for high-quality sites-sites with original content and information such as research, in-depth reports, thoughtful analysis and so on."
According to the release, “Nevertheless, the company currently expects that its year-over-year page view growth across its owned and operated content and media properties in the second quarter of 2011 will be comparable to, or greater than, the year-over-year page view growth achieved in the second quarter of 2010.”
Demand Studios is set to announce first quarter 2011 results on May 5.