Demand Media shares fall after exposure on Google drops

Demand Media Inc.’s exposure on Google has fallen by 66 percent since the search engine put one of many updates in place, a report by Sistrix GmbH shows. And, with that decline has come an 11 percent drop in shares today, MarketWatch reported.

Earlier this year, Google said it would implement changes to rid search results of content farms. Demand said in a statement that last week’s update, called Panda, has reduced search referrals to its eHow.com website.

Demand Media released a statement yesterday saying that reports of a 66 percent decline to its traffic are “significantly overstated:”

“We currently expect that in Q2 2011 our owned and operated Content & Media properties will generate year-over-year page view growth comparable to or greater than the year-over-year page view growth reported for Q2 2010,” said the statement, posted by Larry Fitzgibbon, executive vice president of media and operations.

Google began tweaking its search engine in February, and those changes affected 12 percent of search queries; however, eHow was not affected, the Wall Street Journal reported. The Panda update affected another 2 percent, which apparently did include queries involving eHow.

Demand Media went public in January, and relies on search for a large portion of traffic.

Image: Demand Media

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