walkman - 9:03 pm on Sep 22, 2011 (gmt 0)
Follow the money and open the algo:
Lots of losers due to "bad quality" of content. But one massive winner: Google.
Since Google launched Panda it has beaten Wall Street estimates twice. It's revenues have surged tremendously, yet for much of the past year and more, Google's revenues to its own sites (AdWords) barely could keep pace with revenue to its partner sites (AdSense).
Here's an example for 2010 revenues:
- In Q1 Google sites grew 20% and partner sites grew 24%.
- In Q2 Google sites grew 23% and partner sites grew 23%.
- In Q3 Google sites grew 22% and partner sites grew 22%.
- In Q4 Google sites grew 22% and partner sites grew 24%.
At no point did Google manage to exceed growth in revenues from its partner sites.
Yet suddenly in 2011, under new CEO Larry Page, everything changed:
In Q1 Google sites grew 32% and partner sites grew 19%.
In Q2 Google sites grew 39% and partner sites grew 20%.
Yet for the past year and more, Google couldn't keep up with partner sites and all of a sudden it is surging ahead.
What caused this sudden reversal in fortunes? It looks like it's due to Panda.
Google is taking away traffic from its partner sites and that means it doesn't have to split the revenues, about 68%, with partners -- it keeps all the money.
No wonder the Google cooks keep saying "user satisfaction" is up.