What is Google Panda?
Google Panda was an update of Google's search algorithm that was implemented in February or 2011. In case you don't know, a search algorithm is the formula with which Google, or any search engine ranks web pages in search query results. Google updates it's algorithm frequently, and names the larger updates.
You may have heard of Panda, because this major update was controversial, not only because it caused many highly trafficked websites to drop much lower in the results, but because the effect the update had on the overall search results seemed by many to be counterproductive, if indeed the update was aimed at improving their quality.
What Did Panda Do?
The Panda update was aimed at penalizing garbage websites with little or no original content, or with content deeply buried in affiliate links or Google Adsense ads. Although the idea was a good one, the execution ended up penalizing websites with good original content and promoting websites that were copying that same content and repackaging it.
Panda also reduced or negated the positive attributes of low quality backlinks.
Should You Care About Google Panda?
If you are a small business and have a user-friendly website with original content, and not a lot of affiliate links, banners or Google Adsense ads, there isn't anything you need to do with your on-page search engine optimization or content as a result of Panda. You may, however, need to build some higher quality backlinks to maintain the position you had before Panda, if you did see a drop in traffic starting in early 2011.