Mahalo Goes into App Business After Being Victimized By Panda

More lay-offs and a shift in strategy

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Mahalo Goes into App Business After Being Victimized By Panda
[ Business]

You may recall earlier this year, in the early days of the Google Panda Update, that it was costing some people their jobs. In fact, we’ve seen scattered reports on this note throughout the year.

One of the more publicized stories about this was that of Mahalo, which laid off 10% of its staff after being hit by the Panda update. At the time, Mahalo’s Jason Calacanis told WebProNews, “All we can do is put our heads down and continue to make better and better content. If we do our job I’m certain the algorithm will treat us fairly in the long-term.”

“The 90+ members of our team are rallying around this challenge, and you will continue to see amazing content from experts with real credentials at Mahalo.com,” he added.

At the time, Mahalo was reevaluating its freelance content production strategy, and talked about ramping up its video production efforts, as the company’s video unit was still going strong.

In fact all signs have pointed to video content performing quite well throughout all the iterations of the Panda update that have rolled out over the course of the year. Video sites were often among the top winners on various lists that came out (including Google’s own YouTube of course).

Demand Media launched its big eHow clean-up effort, but pretty much left its video content alone.

But it’s harder to monetize YouTube videos than it was mass content.

Liz Gannes at All Things D reports that Mahalo has laid off another 25% of its staff as it re-adjusts its strategy again, turning away from video in favor of iPad apps. Gannes writes:

Rapp [Mahalo President Jason Rapp] noted that while Mahalo’s videos get 30 million views per month, they are not necessarily profitable based on YouTube ads. Educational iPad apps, by contrast, seem to be instant money makers, because users will pay for them. Mahalo plans to gear up to release one app per week, though it only has four out so far. It will also continue to make educational videos.

It will be interesting to see how the quality of apps is maintained as this strategy progresses, and if the strategy turns into the money-maker that Mahalo hopes it will.

Mahalo Goes into App Business After Being Victimized By Panda
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  • http://www.PlacesToEatOkay.com Steven G

    I hate it when companies do things like set goals to hit a certain number of apps created per week. If you thought content farming was bad, imagine app farming being the new trend where you spit out as many cheap apps as you can just to bring in a huge amount of revenue for the least amount of cost to create the app. It them becomes more profitable to not put a lot of thought and time into the creation of the app, especially with setting a goal of one new app per week. Like what content farms were doing with content until Google stepped in with Panda and essentially created a drastic effect on content creation of not just the content farmers, but of the average publisher who might have turned to internet publishing as a job or even as supplemental income generation.

    • http://signature.eu.com web designers kent

      It only takes a few unwanted gate crashers to spoil the party for everyone. When this happens, the party is over and we look forward to the next one. I guess that’s why the call it the Google dance!

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