There’s a defining line between those who read this and are awed and those who puke a little in their mouth:
The assignments are generated via proprietary black-box technology, which sifts through data on what people are typing into search engines, compares the search queries with keyword advertising rates, and then analyzes how many websites are already serving that particular market. If after mining the data the algorithm determines that a certain headline for a specific topic, no matter how obscure, will be profitable, it pushes the idea into the pipeline.
via Demand Media’s Planet of the Algorithms – BusinessWeek.
An advantage that Demand Media has created is that they’ve convinced investors on their story of how they fit into the new online paradigm (“we are the future of media”). So their financials don’t matter so much right now. As long as old companies like NYT continue to flail, the better the story gets.