If, as many believe, the Panda algorithm includes elements that assess traffic, bounce rates etc and it is a self learning algo, ie if these elements change for a site it reacts, then how will it cope with very seasonal niches?
Looking at my own WMT "Search Queries" report for a site in an extremely seasonal market subjectively I would think that Panda could react negatively against my site on a short term basis. If it looks back at long term history and has a seasonality element then things would be different. This site did not suffer until Panda 2.4 but I guess that this might be a coincidence as this is the time when there is a marked step change in searches and traffic. I'm hypothesising that it could be that an earlier version of Panda was sitting as a time bomb waiting to demote my site but hadn't been given the signal until mid to late August.
If one of the Panda signals that causes a demotion is a change in traffic for the incumbent #1 (and probably #2 and #3) then in a highly seasonal niche market Google will cause the issue that it is reacting to. The sites in the top 3 will show a greater fall in traffic and possibly traffic quality in a seasonal market because Google provides those top 3 with much more traffic than those below. The negative signal will therefore be greater for the top 3 at that time. Another 3 will go to the top and enjoy a year of traffic until the same seasonal cliff hits them and Panda will react against them.
I hope that the Google engineers that designed this thing were bright enough to realise that annual cycles need to be included in the algo.
Am I talking complete tosh or does this chime with anyone else?
Cheers
Sid