Has Demand Media Been Nipped By Googzilla?

August 13, 2010

PEHub.com ran an interesting story, “What Happened to Demand Media’s Traffic?” The focus of the story is a nifty chart designed to catch the attention of the search engine optimization crowd. After a long run up, Demand Media’s traffic fell. According to the write up, “The massive drop off occurred a few days prior to the [Demand Media] IPO filing.”

The PEHub.com story speculates that Google is planning a content play itself. Hardly news here in the goose pond. We wrote Google: The Digital Gutenberg and made that case last year. But news has little to do with research, so the PEHub.com story with references to Google patents is as fresh as a spring blossom.

Our view is slightly different. What did you expect from the addled goose? Chopped liver. (Oh, that is a faux pas related to foie gras.)

  1. Google is chasing money and really is intent on generating revenues. Demand Media type content produces clicks and the Google is keenly interested in this aspect of certain Web plays; that is, clicks equal money.
  2. The Demand Media content is different from a Jeffrey A. Dean Google technical paper. Ergo: Google has some tricks up its lab jacket to become a player in the content stream for which Demand Media has become known.
  3. The shift makes clear the power of traffic reports.

Exciting for sure. I think the traffic drop is a coincidence. The Google has its mind on Korean bar-b-q.

Stephen E Arnold, August 13, 2010


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