Paris, May 31th 2011
Focus on Google’ recent algorithm changes in the UK and expected impact on LeGuide.com
This statement addresses the market’s recent concerns regarding Google’s last algorithm changes in the UK on April 12th 2011 which caused a traffic drop of a number of sites of which shopping guides.
Google’s last algorithm change comes on top of its ascension on the shopping guide and comparison websites market. This move started a few years ago in the US and allowed Google to win about 20% audience share*. Despite this competitor environment change in the US, main shopping guides have continued to progress in a growing market.
For many years Google has been periodically operating changes to its algorithm, to which LeGuide.com has always known how to adapt.
The last roll out in the UK has negatively impacted natural search results and the audience of the whole shopping guides market. dooyoo.co.uk, the Group’s main English site, registered a 37% audience drop between March and April 2011. LeGuide.com estimates the algorithm change’s direct impact to be about 25%, after taking into account seasonal and exceptional news effects.
LeGuide.com is expecting Google to roll out its policy across Europe soon.
Having foreseen these evolutions for many years, LeGuide.com has developed a strategy aimed at diversifying traffic sources. In addition to natural search results LeGuide.com traffic relies on:
- building strong brands in order to win customer’s loyalty by proposing the largest products offer of the
market and by developing regularly new services;
- marketing investments through online traffic recruitment and acquisition,
- and partnerships with well known brands. e.g. SFR in May 2011.
Diversified traffic sources enable to limit this new algorithm roll out negative impact.
Back in 2010 LeGuide.com already started to strengthen its TEAM dedicated to main traffic sources.
In this new context LeGuide.com expects a short-term negative impact on its growth level. Increased marketing investments planned in 2011 should limit the impact.
The group’s operating margins will be impacted, nevertheless expected to be maintained at a high level.
In this environment LeGuide.com is well positioned to reinforce its position among market leader and expects to continue its development and growth in Europe
Next publication: second-quarter revenues on July 26 after market close
LeGuide.com, a publisher of online shopping guides, comparison websites, shopping search engines and platforms for consumer ratings, has a total audience of 11,8 million unique visitors*. LeGuide.com is present in 14 European countries through a multi-site strategy surrounding a brand portfolio, including leguide.com, dooyoo.com, mercamania.com and antag.com. LeGuide.com generated €26.8m in revenue in its 2010 FINANCIAL year and has a team of 99 employees as of December 31, 2010. LeGuide.com has been certified as an “Innovative company” by OSEO (a French public agency that supports SMEs) and is listed on the alternext board of NYSE Euronext Paris (ticker: ALGUI; isin code: FR0010146092).
* Source: Comscore April 2011*
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