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Didnít Google just update the PayDay Loan algorithm a couple weeks ago? Yes, version 2.0 was launched a couple weeks ago.
Matt Cutts explained that this goes after different signals. The 2.0 version targeted spammy sites, whereas version 3.0 targets spammy queries.
Again, this is launching as soon as tomorrow and will look specifically spammy queries, such as terms like [payday loans], [casinos], [viagra] and other forms of highly spammy queries.
Matt did not clarify exactly what he means by spammy sites versus spammy queries, we will try to get more concrete details on this soon.
so much for targeting "spam" on spammy queries. I see things pages such as Craigslist ads showing on queries such as bad credit loans would lead a consumer to get a loan on Craigslist?). Also see a good bit of domain crowding.
A) a brand new site with the most useful information, a great user friendly experience but they paid for a link building service!
Site A is the spammy site according to googles mindset!
That depends on what you mean by "link building service." Do you mean the site owner purchased links? If so, then Site A is a spammy site.
Who's hurt if Site A loses its rankings? Nobody but the owners, because searchers will continue to have plenty of other results to choose from.
In our scenario site A has a superior user experience and more up-to-data (correct) information than the other top results)