Sunday, February 27, 2011

Google will rule the world by 2020

I have the utmost respect for how smart IT creators of programs are. Google has reportedly changed its search algorithm and from briefly going on its site it does look different. Supposedly it will affect 11.8% of its search results and reduce results rankings for low-quality sites. This will make it more competitive among advertisers to keep their ranking up. A local business could get lost in the wide world web of high-quality webpages. Their change in algorithm will impact content farms like Demand Media.

Demand Media, Inc. operates as an online media company in the United States. It identifies, creates, distributes, and monetizes in-demand content. The company's content and media services, include creating media content, primarily consisting of text articles and videos, and delivering together with its social media and monetization tools to the company's owned and operated and network of customer Websites, Google included. Its content and media services are delivered through the company's content and media platform.

After the market closed Friday, shares fell almost 3.5%. It seems Google has declared war on its "content farms." Estimated to be valued at $2 billion, Demand Media will have to make adjustments quick to avoid higher costs and lower revenues. Another two stocks to monitor over the week, GOOG and DMD.

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