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Demand Responds to Google Content Purge

Kara Swisher — Fri, 25 Feb 2011 08:01:01 +0000

Here’s a blog post that Demand Media put up in response to Google’s announcement last night that it would prune low-quality content from its search results.

In a blog post titled “Finding More High-Quality Sites,” Google said:

“This update is designed to reduce rankings for low-quality site–sites which are low-value add for users, copy content from other websites or sites that are just not very useful. At the same time, it will provide better rankings for high-quality sites—sites with original content and information such as research, in-depth reports, thoughtful analysis and so on.”

Some think Google was aiming at Demand, whose top exec recently said the content company welcomed any improvements to the search results in its recent quarterly call.

“We consider ourself very white hat,” declared CEO Richard Rosenblatt, to a question from a Wall Street analyst about the series of recent declarations by Google to clean up its search results.

Demand went further in a blog posted last night, which is here in its entirety:

A Statement About Search Engine Algorithm Changes

How our content reaches the consumer–whether it’s through direct visits, social media referrals, apps or search–has always been important to and monitored closely by us. We also recognize that major search engines like Google have and will continue to make frequent changes. We have built our business by focusing on creating the useful and original content that meets the specific needs of today’s consumer. So naturally we applaud changes search engines make to improve the consumer experience–it’s both the right thing to do and our focus as well.

Today, Google announced an algorithm change to nearly 12% of their U.S. query results. As might be expected, a content library as diverse as ours saw some content go up and some go down in Google search results.This is consistent with what Google discussed on their blog post. It’s impossible to speculate how these or any changes made by Google impact any online business in the long term–but at this point in time, we haven’t seen a material net impact on our Content & Media business.

Coming out of the IPO quiet period this week, we knew the topic of Google’s search engine changes was top of mind for many people–so we discussed it on the earnings call, in a couple of follow up interviews and are now issuing this statement. However, we generally don’t comment or speculate on changes by major search engines. They make changes nearly daily in a quest to give consumers the best possible experience, as do we.

Finally, in our Q4 earnings call on Tuesday we talked at length about the nature of our content and the consumer experiences we are delivering. Beyond our success helping consumers discovering our content via search, we also shared metrics around direct visits, repeat visits and social visits. We believe these metrics are leading indicators that our properties are developing into recognizable consumer brands that are delivering real value to an increasingly loyal community.

We believe these kinds of indicators are a result of our firm commitment to the interests of consumers, and that is where we continue to focus our efforts.

Larry Fitzgibbon is Demand Media’s EVP of Media and Operations, and manages the company’s rapidly growing network of consumer properties.

"Beyond the Search Box": The White Pleather Honeypot Smackdown

Kara Swisher — Tue, 01 Feb 2011 19:53:20 +0000

Perusing AOL’s leaked damn-the-journalism-full-speed-ahead business plan, BoomTown was a little late to the Microsoft Bing event this morning called “Farsight: Beyond the Search Box.”

But things had certainly been cooking with gas when I walked into the meeting room at the University of San Francisco, which the organizers had decked out in white nubby rugs, white pleather couches and those white egg-shaped chairs found only in 1970s decor.

Schweeet!

First up was well-known investor and entrepreneur Peter Thiel, poo-poohing Microsoft’s prospects of ever making money in search.

“It’s difficult to produce a new search company,” said Thiel, noting that even with a growing market share it’s curtains for Bing, given the huge fixed costs. “As far as I can tell, it’s still not breaking even.”

Ouch!

By the way, Thiel sold semantic search engine Powerset to Microsoft for upward of $100 million in 2008 to help it, you know, get ahead in search.

Way to insult your money-bearing hosts!

Then, moderator Vivek Wadhwa harangued the panelists from Google, Microsoft and Blekko in the session “Who Will Win the Spam Wars?”

And they say I’m a snarky moderator! Wadhwa is snarktastic!

Wadhwa did not like any of it–not crappy content sites that sully Web search, not the efforts the companies were making to fix things, not the vision the trio had of the future.

And, by the way, Microsoft was not ever going to make money off all the company’s efforts.

Way to insult your hosts! I like this event!

Of course, what everyone was interested in was a smackdown between Google and Microsoft, given that the search giant accused the software giant of stealing its results today.

In an excellent, if exhaustive, post by Search Engine Land’s Danny Sullivan, Google said Bing was cheating by lifting its search results, which Google said it had proved via a “honeypot” sting operation.

“I’ve spent my career in pursuit of a good search engine,” Google’s Amit Singhal told Search Engine Land. “I’ve got no problem with a competitor developing an innovative algorithm. But copying is not innovation, in my book.”

The very presence of the word “honeypot” in any story about search algorithms is superb, in my book, even though this “controversy” is pretty much a he-said-he-said geek-off.

Google’s Matt Cutts kept up the cheater pressure at the Bing event, in a short debate with Microsoft’s Harry Shum, who was not having any of it.

“It’s not like we actually copy anything,” he said.

Translation: Actually, we do borrow, just like Facebook’s Mark Zuckerberg did to the Winklevii, resulting in a social networking behemoth that will soon take over all search and make this whole debate moot.

Microsoft is rubber, Google is glue. And Facebook, which was not present at the search event, is the real sticky honeypot.

Exclusive: Chegg Raises $75 Million in Additional Funding from Asian Firm

Kara Swisher — Mon, 27 Sep 2010 03:55:15 +0000

Chegg, the online textbook rental service, has raised another $75 million from Asia-based Ace Limited, according to sources.

Ace seems to be nonexistent on the Internet, although sources said it is a Hong Kong-based investment firm.

The round comes after a huge Series D investment in late 2009, which already brought Chegg’s funding to a whopping $144 million.

Venture firms, such as Kleiner Perkins, Foundation Capital, Insight Venture Partners and others have presumably handed over that money in hopes of big returns.

And, of course, the inevitable IPO for the Silicon Valley start-up.

That’s because Chegg has become the front-runner in the increasingly competitive online textbook rental space as it seeks to disrupt the $10 billion college textbook business.

Chegg got its start in 2005 at Iowa State University as a classified rental service, where books were the dominant item, but evolved its business to focus on actually doing the textbook rentals.

The company’s unusual name, Chegg, is a mashup of “chicken and egg,” and its model is similar to that of innovative video rental outfit Netflix (NFLX).

Chegg now serves close to 7,000 schools across the U.S., with 120 employees in Silicon Valley and more at a warehouse operation in Louisville, Ky.

Typically, a rental costs a fraction of what buying a book outright does. It is ordered online and then sent to a renter, who then returns it.

There is, of course, lots of competition.

The Barnes & Noble (BKS) College division recently began testing a textbook rental program, for example, and is rolling it out to 25 U.S. colleges. And BookRenter is a smaller rival.

In a bid to expand its offerings beyond books, Chegg recently acquired CourseRank, a Mountain View, Calif., start-up that helps students “share their course schedule, take classes with their friends, read and write reviews on classes and professors as well as find out how professors grade.”

Here is a video interview I did with Chegg CEO Dan Rosensweig recently at Chegg’s Santa Clara, Calif., HQ:

[ See post to watch video ]

Exclusive: Tyra Banks Picks Demand Media as America’s Next Top Digital Business Model

Kara Swisher — Tue, 29 Jun 2010 03:00:30 +0000

Well-known modeling icon Tyra Banks has struck a partnership with Demand Media to create a new digital brand focused on fashion and beauty.

The deal between the Santa Monica, Calif.-based online content maker and Banks’s New York beauty and entertainment company, Bankable, will include the development of a Web site, online video offerings and mobile applications.

“Their strategy, team and technology are outstanding, and the company has developed a unique method for quickly creating popular online platforms by providing visitors with exactly the kinds of content they’re looking for,” wrote Banks in an email to BoomTown tonight. “It became clear to us that Demand Media has developed something truly innovative and that they would be the perfect partner as we work to grow Bankable Digital into a significant part of our business.”

The deal with Banks is a high-profile one for Demand, which is seeking to expand its content to more premium offerings.

“This is where media is going,” said Demand CEO Richard Rosenblatt. “We’re going to link our huge amount of content and writers to her ethos around beauty inside and out.”

As part of the deal–which is not unlike the Livestrong health and fitness site created by Demand and cyclist Lance Armstrong–Banks is receiving shares in Demand, which is widely expected to file for an initial public offering in the near future.

“What Oprah did for television, we think Tyra can do for digital content in the fashion, health and beauty space,” said Joanne Bradford, who was recently hired by Demand from her job as the top advertising sales exec at Yahoo (YHOO) to turbocharge its premium advertising efforts.

This is exactly in that wheelhouse, mashing up a well-known celebrity with the vast stores of content Demand produces from its army of search-fueled freelancers.

Banks has certainly become an entertainment powerhouse since she retired from her supermodel days.

But while she is developing books too, Banks has been focused mostly on television, with her own talk show, “The Tyra Banks Show,” which just wrapped up after five years, as well as the megahit, “America’s Next Top Model.”

The most recent show she is producing is called “True Beauty” on ABC, in which good-looking contestants think they are being judged for beauty on the outside, but are actually being scored based on their kindness and other inner attributes.

Currently, Banks’s Web site is mostly promotional, although she also has a potentially large online fan base, with 1.6 million Twitter followers and an inspirational self-help image that is likely to translate well in a more interactive setting.

Whether that will bring big bucks or not is uncertain, of course. So far, Bradford said Demand has not signed up advertisers, but added that this is just the kind of site they will welcome and have been asking for.

“Advertisers are looking for new kinds of content online to be associated with,” she said. “We think Tyra has the kind of message that will attract a really engaged audience online.”

In fact, Banks said she plans to be very engaged in the creation and operation of the online destination.

“Anyone who knows me knows that, once I commit, I’m in 100 percent,” she said. “I plan to be very involved from the early design stage to the choice of videos, articles and special features, to the launch and marketing of the site.”

Here’s the official press release, and below it, the full video of Rosenblatt talking about Demand’s strategies around content, in an interview at the eighth D: All Things Digital conference earlier this month:

DM Bankable Release FINAL2

[ See post to watch video ]

Report: Steve Jobs Is Recovering From Liver Transplant, Still Coming Back to Apple

Peter Kafka — Sat, 20 Jun 2009 04:02:22 +0000

The Steve Jobs health story takes yet another twist, this time a happier one: The Wall Street Journal is reporting that the Apple CEO underwent a liver transplant earlier this spring and is recovering from the operation.

Jobs, who stepped away from day-to-day management of his company in January, is still expected to return to work later this month, the Journal said.

The transplant, which the Journal says Jobs received “about two months ago,” may be related to a form of pancreatic cancer that the Apple (AAPL) CEO has been living with since 2003. In 2005, Jobs declared that he was “fine,” but the state of his health, or lack thereof, has been the subject of recurring speculation for years.

That reached a fever pitch during the past 12 months, spurred on by his unusually gaunt appearance at Apple’s 2008 Worldwide Developers Conference. Apple officials originally said Jobs was suffering from a “common bug.”

In January, following Jobs’s announcement that he was receiving treatment for a “nutritional problem” stemming from a hormonal imbalance, Bloomberg reported that he was considering a liver transplant.

Jobs’s response: “Why don’t you guys leave me alone–why is this important?”

The Journal says that Jobs, who was supposed to come back to work full-time by the end of this month, may ease into the role and that COO Tim Cook, who has been running the company day to day in his absence, may get more responsibility.

But the paper also says Jobs has been back to the company’s Cupertino, Calif., headquarters:

“During his leave, Mr. Jobs has remained involved in key aspects of the company and reviewed products and product plans from home. He has also been seen at Apple’s headquarters, according to people who have seen him there.”