Google’s latest major algorithm update Panda penalizes sites with low quality content.  As a result, major sites like JC Penney and Overstock.com saw their rankings for high-competition keywords drop from page 1 to page 5-6.

What does Google panda reward?

Google wants sites that have high-quality content, authority, and good on-page SEO.  But this time Google is paying particular attention to the amount of time people spend on your site.

The engineers at Google have determined that people spend longer amounts of time on sites that have great information.  These types of sites also tend to have the other things Google looks for: good PageRank value, lots of backlinks from other authority sites, and social media buzz such as Tweets and social bookmarking.

Google looks at your entire site.  If they rate some of your pages as low quality, your entire site will be penalized.  This is why the content farms and article directories got hit so hard with the Google Panda update.

Review your site and make sure your pages include good quality, original content.  Make it easy for readers to get the content. Fix misspellings and grammatical errors.

See: Xornal.com

Also see Google Panda update: will your coaching site thrive or die?

Thanks to @Currixan on Twitter