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4 Companies Affected By Google's SEO Crackdowns

  +Follow July 8, 2013 12:17PM
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The term “Search Engine Optimization,” or SEO, has become a catch-all for appeasing Google’s (GOOG) search algorithm. That is, SEO is anything and everything a company does to make sure their company’s web pages coincide with highly used search terms, and thus appear highly on Google search rankings. And being on top of those rankings is big business. Because in internet advertising, Google is king.

Google accounts for 56 percent of the entire world’s internet ad revenues. That’s a lot of money sitting out there, and a lot of internet companies are vying to take their slice. If a website is not a transaction-based business and relies on advertising to make its money, solid SEO is what catapults your company over your competitors. The first page of a Google search get 58.4 of all the clicks, and the number one result alone gets 36.4. The website with the highest rankings, wins.

But what does “win” mean? Win means you got that click, and thus the ad revenue from AdSense or one of Google’s other advertising platforms. The content – that is, what the user sees after the click – is almost besides the point. If you get the click, you get the money.  Having the right keywords, link stuffing, provocative titles, all are fair game in that quest for the top spot.

But those days of low-quality content engineered to get the most clicks might be completely on the way out. In May 2013 Matt Cutts, the head of “web spam” on Google’s Search Quality team, announced that Google would be deploying Penguin 2.0, an algorithm update that would close out the less savory SEO practices. Before Penguin was the update Panda, which also targeted SEO content. The implementation of Panda cost Demand Media (DMD) 6.4 million in the fourth quarter of 2011 alone.

While none of these companies engage in so-called “black hat SEO” – providing zero content and maliciously tricking people into clicking their links – the following companies do rely heavily on appearing highly on Google searches to generate revenue. And if they don’t continue to keep their content levels to a standard Google sees fit, they could suffer more with every new Panda or Penguin update. For as prominent SEO analyst Adam Torkildson predicted in 2012, “SEO will be dead in two years.”

Local Corporation (LOCM) Local.com relies on promoting local business links to generate ad revenue. Local promotes themselves by asserting they make sure “your business is listed correctly across the web” – that is, that they’ll maximize your business’ SEO. Their stock is down 1.33 percent to hit $1.48 a share. Their stock has steadily tumbled, and is down 27.80 percent on the year and 77.58 percent from its price three years ago.

Demand (DMD) Demand has famously built their brand on fast, disposable content. And when Google tweaks their search algorithm to drop low quality articles, their stock takes a hit, as it did in 2011 with the rollout of Panda. Demand is up 5.22 percent to $6.65, although the stock is down 28.42 percent this year.

AOL Inc (AOL) While AOL has branched out considerably, in 2011 their “master plan” to maximize SEO leaked, and revealed their content generation process. It focused heavily on search-focused content and upping the frequency of web publications – a classic SEO strategy. AOL’s stock is up .46 percent to $36.92 a share. The stock is also up 24.69 percent on the year. AOL’s renewed focus on content so far has been largely successful since they spun off from Time Warner (TWX) in late 2009.

Yahoo! Inc (YHOO) Yahoo has remade infamous content farm Associated Content into Yahoo! Voices, and upped the standard of their content considerably. Associated Content suffered dearly during the first waves of Google’s SEO crackdown, and over 75,000 old articles from the site have been “retired” in an attempt to legitimize the viability of Voices’ content.

Yahoo’s stock is up .19 percent to $25.73 a share. They’re up 29.65 percent on the year.

Results for yhoo
The Good Trader
17 Apr 14 17:39:02
$YHOO Is Yahoo A Short? http://t.co/lKehHq7MKM
Simon Casey
17 Apr 14 17:24:43
RT @SRuhle: Banker pay is a problem-but tech guys? No biggie “@BloombergTV: How did Yahoo's fired COO get $58 million? http://t.co/R8QyNGz…
Stock Herald
17 Apr 14 17:22:06
$YHOO: [video] Earnings Scorecard: Looking Ahead to Facebook and Netflix http://t.co/5qVHRNWUwf
MarketNews
17 Apr 14 17:10:17
$YHOO - [video] Earnings Scorecard: Looking Ahead to Facebook and Netflix -> http://t.co/skPFxoUYce #stock #stocks #stockaction
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$YHOO: How Microsoft Turned PCs Into Home Appliances http://t.co/7HLXdr3D0K
The Good Trader
17 Apr 14 16:54:06
$YHOO Marissa Mayer Wants Apple To Drop Google For Yahoo Search http://t.co/do7PJyT01I
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17 Apr 14 16:53:15
$TDG Should you buy $AMP $YHOO $DO #newsletter http://t.co/BbUag66uF3
Calvin Roberts
17 Apr 14 16:53:10
Short $YHOO ahead of the Alibaba IPO.... http://t.co/4DSdjzyD1T I mean if you know how to short a stock.
Informer
17 Apr 14 16:51:36
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Stock News 24
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$YHOO - How Microsoft Turned PCs Into Home Appliances -> http://t.co/lDjuwt7ja3 #stock #stocks #stockaction
Gold Stock News
17 Apr 14 16:39:20
$CBG Do you think you should hold $SLB $YHOO $OPK #wallstreet http://t.co/Xoe9YFVJTR
StockNews24
17 Apr 14 16:36:39
$YHOO - How Did Yahoo!s Fired COO Get $58 Million? Good Timing -> http://t.co/Wn2ERhGkDR #stock #stocks #stockaction
Teodor Gareth
17 Apr 14 16:36:07
$YHOO Yahoo COO Henrique de Castro gets $58m severance package after 15 months http://t.co/HqcXgRSglU
Ben Reynolds
17 Apr 14 16:35:42
RT @launchticker: $YHOO core business worth less than 0, based on stakes in Alibaba, Yahoo Japan: @voxmediainc http://t.co/iKsBBX8qQR http:…
Informer
17 Apr 14 16:35:05
$YHOO: [video] The Week That Was: Another wild week http://t.co/SOS4UvPdBX
Stock Wire
17 Apr 14 16:34:49
Yahoo COO Henrique de Castro gets $58m severance package after 15 months $YHOO http://t.co/3XOAfWEIvD
Syndicate Pro
17 Apr 14 16:31:02
Yahoo would still get a grip on Alibaba even after it goes public ~ http://t.co/io9u64WaLg #IPO $YHOO $BABA
Roland Dennert
17 Apr 14 16:31:02
RT @launchticker: $YHOO core business worth less than 0, based on stakes in Alibaba, Yahoo Japan: @voxmediainc http://t.co/iKsBBX8qQR http:…
Informer
17 Apr 14 16:28:06
$YHOO: Company News: Alibaba, Credit Suisse, Burberry, Athletic Shoes, Colora... http://t.co/WizpHgPtrR
عبدالرحمن الشدوخي
17 Apr 14 16:27:38
RT @launchticker: $YHOO core business worth less than 0, based on stakes in Alibaba, Yahoo Japan: @voxmediainc http://t.co/iKsBBX8qQR http:…
Hans Daecher
17 Apr 14 16:27:23
RT @SRuhle: Banker pay is a problem-but tech guys? No biggie “@BloombergTV: How did Yahoo's fired COO get $58 million? http://t.co/R8QyNGz…
Katherine Rushton
17 Apr 14 16:26:17
RT @SRuhle: Banker pay is a problem-but tech guys? No biggie “@BloombergTV: How did Yahoo's fired COO get $58 million? http://t.co/R8QyNGz…
SNN Team
17 Apr 14 16:23:27
$YHOO - [video] The Week That Was: Another wild week -> http://t.co/kDMSZObEvu #stock #stocks #stockaction
Jeffrey C. McCracken
17 Apr 14 16:22:27
RT @SRuhle: Banker pay is a problem-but tech guys? No biggie “@BloombergTV: How did Yahoo's fired COO get $58 million? http://t.co/R8QyNGz…
launchticker
17 Apr 14 16:21:58
$YHOO core business worth less than 0, based on stakes in Alibaba, Yahoo Japan: @voxmediainc http://t.co/iKsBBX8qQR http://t.co/KNhHwCPtGi
Kamren Dissana
17 Apr 14 16:17:09
$YHOO Wow. Great #Stock #Research on $GHC $MCK $AMZN #StockMarket http://t.co/7w4dKMrzr2
Andrew Mecwan
17 Apr 14 16:12:07
RT @SRuhle: Banker pay is a problem-but tech guys? No biggie “@BloombergTV: How did Yahoo's fired COO get $58 million? http://t.co/R8QyNGz…
WallStreet_3.0
17 Apr 14 16:11:38
RT @NicoleLapin: ‘How Did $YHOO’s Fired COO Get $58M? Good Timing’ --> http://t.co/3RALMXs4YV
MikeK
17 Apr 14 16:10:00
RT @BloombergTV: Yahoo Chairman Webb: We're not in a tech bubble http://t.co/Uj6mpFt6gS $YHOO
Informer
17 Apr 14 16:07:05
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Informer
17 Apr 14 16:06:33
$YHOO: How Is Yahoo So Worthless? http://t.co/NvjJwgWvKx
Informer
17 Apr 14 16:06:08
$YHOO: Is Yahoo A Short? http://t.co/lTXw5UbUeF
12Stocks.com
17 Apr 14 16:01:38
Nasdaq100 #Stocks Trend $SNDK $VIP $MU $QCOM $FISV $CSCO $COST $CHRW $EXPD $GILD $CHKP $WDC $LINTA $KRFT $YHOO @ http://t.co/wz4pxpINCJ
MacCBOE
17 Apr 14 15:59:12
@ArbCowboy Wow. Had I made the same mistake today I'd a been screwed, $CMG, $YHOO, $EBAY short Apr 19 Calls. Phew! Glad ur good!
Stephanie Ruhle
17 Apr 14 15:56:45
Banker pay is a problem-but tech guys? No biggie “@BloombergTV: How did Yahoo's fired COO get $58 million? http://t.co/R8QyNGzmR8 $YHOO”
Hedge.Ly
17 Apr 14 15:55:58
Probably via a wire or Ach Transfer “@BloombergTV: How did Yahoo's fired COO get $58 million? http://t.co/F8MMrRldfS $YHOO”
MarketNews
17 Apr 14 15:55:32
$YHOO - Is Yahoo A Short? -> http://t.co/cn6A2DjGZq #stock #stocks #stockaction
MarketNews
17 Apr 14 15:55:07
$YHOO - Company News: Alibaba, Credit Suisse, Burberry, Athletic Shoes, Colora... -> http://t.co/QQTZwuD0HZ #stock #stocks #stockaction
Bloomberg TV
17 Apr 14 15:55:06
How did Yahoo's fired COO get $58 million? http://t.co/mgj2z6m71T $YHOO
SNN Team
17 Apr 14 15:53:50
$YHOO - In Twitter-Like Leap, Weibo Pops 19% In IPO Debut -> http://t.co/yqExM0aykM #stock #stocks #stockaction
The Good Trader
17 Apr 14 15:52:37
$YHOO Sources: Duke's Rodney Hood to enter NBA draft http://t.co/tSBCGtkrL4
Brenden Black
17 Apr 14 15:52:32
$YHOO Whats going on with $WCN $SPG $AMZN I suggest http://t.co/YnnvaW9TaK
Teodor Gareth
17 Apr 14 15:51:08
$YHOO Yahoo! Inc. (YHOO) Stock Climbs 6% on Earnings Beat, Alibaba's Performance http://t.co/hxDUrYMTmF
Stock News 24
17 Apr 14 15:49:31
$YHOO - How Is Yahoo So Worthless? -> http://t.co/5SZhpczQNW #stock #stocks #stockaction
Tanguay
17 Apr 14 15:49:29
RT @KeeneOnMarket: $YHOO nice soft landing at $36.5, my 35-36.5-38 Call Fly paid 600% Profits in less than a week
Stock News 24
17 Apr 14 15:49:27
$YHOO - The Peculiar Worthlessness of Yahoo -> http://t.co/awrxWJhINn #stock #stocks #stockaction
GavinGreenberg
17 Apr 14 15:46:04
$YHOO: [video] How hackers beat the Heartbleed bug http://t.co/1qRGuJBCip
GavinGreenberg
17 Apr 14 15:45:34
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KeeneOnTheMarket.com
17 Apr 14 15:45:11
$YHOO nice soft landing at $36.5, my 35-36.5-38 Call Fly paid 600% Profits in less than a week
Jan-Erik Andreassen
17 Apr 14 15:43:23
RT @hi_missA: Interesting $MSFT's absence in the #Top10 Tech Acquirer list, while $YHOO $GOOG $AAPL $FB keep with the buying spree. http://…
				
				
  +Follow July 8, 2013 12:17PM
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