Google May Threaten Demand Media’s Plan - reidsuffed

It wasn't the most auspicious development for a company that's getting ready to sell stock to the public. Since content mill Demand Media Studios dying Fri filed its intentions to offer an First Exoteric Offering of stock afterwards this year, traffic at its website has born.

Did I say set down? Plumb is more like it. Accordant to Quantcast, daily web traffic for Demand Media was rolling along at around 7 billion viewers a day ahead dropping of the cliff to less than 2 million since the IPO announcement. (Click on the image below for a close-up prospect of the details.)

What could experience caused the 71 percent traffic drop? Some Demand Media watchers point to a nugget of information in the keep company's IPO filing.

That nugget, listed in the "danger factors" investors should consider in front throwing at peace presidents at Demand Media is possible contender from Google. That would be a big screw up to Demand, which depends on Searchzilla for a quarter of its revenue through cost-per-pawl keyword advertizement. Demand Media acknowledged in its IPO filing that Google's access to billions of searches could pass on it a competitive advantage over Demand Media should the search unshakable enter the content propagation business.

Demand Media's business model calls for marshalling armies of creatives to bring out articles, photos, and videos for its website. Demand Media uses an algorithm to identify calefacient trends on the Internet and steer its creatives to produce content for those trends. It creates revenue from keyword-germane advertising tied to the content. And since the content is tied to hot trends, it collects top dollar from advertisers hungry to tap into those trends.

That competition may have already began, accordant to unity Demand Media watcher, who suggests that Google is tinkering with its search algorithm to debar traffic by from Postulate.

"The monolithic send packing-off occured a few years prior to the IPO filing, and has stayed consistent over the past two days of Quantcast reports," observes Dan Primack. "It sure could be an error the fall is not mirrored by indirect" dealings analytics groups Contend operating room Alexa but let me offer an alternate (and unsupported) theory: Google altered something in its search algorithm to lower the demand for Demand."

Between this dubious conspiracy theory nigh Demand Media's drop in dealings and Google's dalliance with Verizon this week, it's enough to raise questions in some minds as to whether or not the search titan has past over to the "dark side."

Source: https://www.pcworld.com/article/508497/google_fears_dropping_traffic_for_demand_media.html

Posted by: reidsuffed.blogspot.com

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