Dive Brief:
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A May “Panda” update to Google’s search algorithm hit coupon site Retailmenot’s search results hard enough that the company warned it would affect its revenues. Google’s Panda updates to its algorithm are supposed to improve search results.
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Another Panda update in September and a “Penguin” update in October apparently had the opposite effect on Retailmenot’s rankings, improving them significantly.
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Some investors were alarmed by Google’s affect on Retailmenot. But analysts expect sales growth of 20% for Retailmenot next year.
Dive Insight:
Things are back on track for Retailmenot’s search rankings for now, but it’s unclear whether that could change again. In fact, it’s really not clear how much of an effect any particular change to Google’s search algorithms does have.
Presumably, it could be tempered by the growth of mobile and increased use of Retailmenot’s mobile app. Still, Retailmenot’s summer rollercoaster ride thanks to its Google search rankings showed how vulnerable it may be to any changes in the algorithms that drive them.
