Demand Media Feels the Effects of Google Slap; Revenue Slips
Demand Media warned of "slight" revenue declines in 2014, pointing the finger at Google and algorithm changes from last May (Penguin) that severely impacted eHow.com, one of the premier websites in the company's domain name portfolio.
Revenue for Demand Media, which generates the majority of its revenue from selling advertising on its content, fell six percent to 96.7 million in the fourth quarter. Reports in January surfaced that Demand would begin eliminating its direct sales force, opting instead to sell advertising through automated exchanges.
Demand is also well-known in the domain name industry. The company will soon spin off its Rightside Group business, which focuses on domains exclusively, as a separately traded company. Demand Media owns several other relatively well known digital domain name brands including eNom, Pluck and Name.com.