Demand Media Announces 20% Decline in eHow Search Referrals Due to Panda

    May 5, 2011
    Chris Crum

As you may know, Demand Media released its quarterly earnings report, reporting an increase in revenue (including for its content business specifically), and even a 32% increase in pageviews. In addition to that, the company made some new announcements about how it intends to continue its quest to increase quality of content. More on these here:

Demand Media Earnings Report – Revenue Up, Questions Remain
Demand Media Deletes eHow Articles, Edits Others in Quality Clean-up Initiative

After the report, Demand Media held its earnings call, in which Richard Rosenblatt talked about the company’s news some more. He also referenced the Google Panda update. He kept it brief, but said they experienced a net decline of 20% in eHow search referrals due to changes, and a decline of 12% in total pageviews for eHow. This followed an unexpected spike in Q1 traffic from the initial algorithm change (the original U.S. update).

“This is a real impact to our business and we take it very seriously,” he said.

Rosenblatt promised to keep everyone up to date on the progress in the next earnings call. Meanwhile, the new strategies aimed at boosting content quality may help. We’ll see. Keep in mind, they’re also deleting some content.

Demand Media stock is up in afternoon trading. It’s currently at 16.31 as of the time of this writing.

Clarification: We originally referred to the 20% as “traffic” when it should have been “search referral traffic” specifically.