Affiliate marketing specialist XLMedia has warned that the recent updates to algorithms on Google could hinder the group’s revenue.
Publishing a trading update, XLMedia explained that its site demotions within Google were done manually. This was despite it coinciding with search algorithm changes, which were rolled out on 13th January.
“On 18 January 2020, the company became aware that a number of its casino sites have been manually demoted by Google, which impacts the visibility of the sites and their ability to generate meaningful levels of online traffic, and hence revenues, from new visitors,” XLMedia said.
“Whilst it is too early to accurately assess the financial impact of this action by Google, any further material delay to the full restoration of rankings of these online assets would result in a corresponding reduction of both revenue and adjusted EBITDA during that period.
“The company confirms that the Group’s other online publishing assets remain unaffected. A process of review is now taking place, with a view to resolving any issue as soon as possible and the company will provide a further update in due course as more information becomes available.”
Google rolled out a new search algorithm update for January 2020 on 13 January, and in a tweet the search engine said the update was “mostly done” on 16 January.