Demand media said traffic wounded on eHow.com (Reuters)

BANGALORE (Reuters) - demand Media Inc. said new algorithm research of Google Inc., hurt page views on some of its Web sites moderately, sending its shares down up to 13% Monday.

However, the company said a third of the estimates of the impact has "clearly exaggerated" the negative impact of these changes on traffic at eHow.com.

"Changes have negative effects on search driven traffic to some of our Web sites, including eHow.com, causing moderately lower page view growth, to date," the company said in a news release.

For the first nine months of the year, 28% of demand media revenue came from Google.

Demand media relies on search engine optimization to drive traffic to its Web sites based on keywords used by search engines to produce results.

Google often modifies its algorithm based on feedback from users and the navigation behavior. In February, the company said that its last change impacts significantly 11.8% of the search queries.

"Many changes that we are so subtle that very few people notice their.". But in the last day, we launched a large enough algorithmic improvement for our ranking, Google had said in a blog.

Request for media, which has 13 000 freelancers whose articles and videos appear on Web sites such as his own eHow and LiveStrong and USAToday.com of Gannett Co, however, said the lower traffic will not affect its previous outlook for 2011.

Stifel Nicolaus analyst Jordan Rohan attributed the vulnerability of the traffic of the media asks "troubling" Google for investors as a reason for liquidation.

Demand Media, which is in competition with associated content of Yahoo, About.com to the New York Times Co and seeds of AOL, went public earlier this year and has been indexed as icebreaker price related to the Internet this year.

The company based in Santa Monica, California had planned 2011 income of $ $310-325 million in February, when he referred to the results of the fourth quarter. Analysts, on average, expected revenues of $ 311.5 million, according to Thomson Reuters I/B/E/s

Shares of the company decreased by 9% to $17.60 late morning trade on the New York Stock Exchange. They touched its lowest level of $16.91 earlier in the session.

The Dow Jones Industrial Average dropped 1.62% late morning trade Monday.

(Reported by Himank Sharma;) (Editing by Prem Udayabhanu and Gopakumar Warrier)

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