The 4.0 version of Google’s Panda Algorithm Update impacted many sites. There have been hundreds, maybe thousands of articles about why and how Panda affected those sites in the context of the SERPs. But how do falling SERPs impact a company’s bottom-line? Jignesh Gohel steps outside of the warm confines of the internet to show us the real-world impact a dramatic loss in the SERPs can have on a company’s bottom line when they rely almost exclusively on organic search results for their traffic.
If you were under the impression that the Google Panda updates only affected small businesses, you are in for a rude awakening. A big brand like RetailMeNot is one of the best examples of a large business that lost huge traffic after the latest round of Google Panda updates.
Before I share my in-depth research about RetailMeNot and other coupon websites’ plummeting stock prices, let’s make sure we have a basic understanding of the Panda 4.0 updates first.
Enter the Panda 4.0
While it is true that search engine rankings (SERPs) are highly dependent on a myriad of different SEO strategies such as onsite optimization, back linking, and social media marketing; it is also important to remember that it hasn’t always been that diverse of a criteria. The ranking algorithms have changed drastically over the years, and will continue to do so regularly.
The latest change has come with the Google Panda update that targets websites with poor quality and inorganic content. Google has confirmed that Panda 4.0 was rolled out in May. Since May 19th, 2014, many websites have found their traffic drop by more than 50%. The update has also been reported to have severely affected more than 7.5% of international queries, overall.
Depending upon the source, various reports have shown that many of the top-ranking websites prior to the release of Panda 4.0 have dropped between the 4th and the 20th position. It is believed that the new Panda update encourages the creation of new websites with fresh content as opposed to legacy websites filled with inorganic content. The Panda 4.0 algorithm has surely made things harder for Search Engine marketers who got lazy with their content creation strategies.
How Google Panda affected RetailMeNot.com
To get the answer to this question, I used SEMRush; my all time favorite tool to analyze website performance. I like using the tool to identify the way that the traffic follows to my competitors’ sites. SEMrush also offers various unique features that make my job as an online marketer easier. For this article, I used the SEMRush organic research tool to research the organic search positions of RetailMeNot.com in Google.com over the past six months.
Surprised? Me too! RetailMeNot.com has lost rankings for MILLIONS of their relevant keywords. RetailMeNot Inc. runs the one of the largest marketplaces in the world for digital discount/offer coupons. The company issues a huge range of coupons from hundreds of different brands and retailers, which in turn allows them to boost website traffic and sales.
In 2013, RetailMeNot estimated that around $3.5 billion in retailer sales came via digital coupons. In the last year, the website has had more than 590 million visitors and the strength of their model allowed the website to join NASDAQ under the “SALE” stock symbol.
However, since Google Panda 4.0 rolled out,, the figures seem to be dwindling for RetailMeNot. See the below screen shot of RetailMeNot stock price performance from MarketWatch during the same time frame as above. The company’s stock value decreased dramatically in conjunction with the traffic losses as a result of the Panda Update.
We can infer that a big portion of organic traffic for RetailMeNot was lost around the time that Panda 4.0 went live. Prior to the algorithmic update, organic search accounted for more than 64% of the traffic for RetailMeNot which left them especially vulnerable to fluctuations in the SERPs.. Between May 2014 and June 2014, the SERPs for RetailMeNot fell from 22,024,704 keywords to 13,887,991 keywords (accounted by around 269K keywords in top 20 search position in Google.com).
Competitors report for RetailMeNot
While the stock prices and SERPs for RetailMeNot tumbled, many of the company’s competitors seized on their misfortune and acted. . Coupons.com, the closest competitor of RetailMeNot has seen huge jumps in traffic during specified time. Based on the information below, it looks like Coupons.com was better prepared for Panda than RetailMeNot.
Organic Search Traffic of Coupons.com
The same could be said of some of RetailMeNot’s other, smaller competitors including BradsDeals.com, Goodsearch.com and CouponCabin.com. For BradsBeals.com, their traffic rose by 1.6 million, which is worth $1.3 million and aggregated by 121K keywords.
Goodsearch.com received a boost of 6.4 million in traffic since Panda 4.0 with its traffic cost totaling $3.7 million.
Couponcabin.com, for instance, generated more traffic after May 19th, clearly triggered by the more highly valued organic content favored by Panda. Comparing the traffic volume of May 2014 and June 2014, the growth was from a low 127,121 to a surprising 1,894,553 in June 2014.
So now we see how Google’s updates can impact the “real world.” RetailMeNot’s precipitous falling stock prices put the power of Google in making or breaking an online business under the microscope. If you don’t deliver content that Google favors, you could wind up in the poor house.
Don’t be the next RetailMeNot.
- http://www.marketwatch.com/story/retailmenots-coupon-business-clipped-by-google-changes-2014-08-06 (Story)
- http://searchengineland.com/google-begins-rolling-panda-4-0-now-192043 (Google Panda Updates)
- http://www.semrush.com/ (Research Tool)
- http://www.marketwatch.com (For Stock Prices)