Lost rankings. What should i do?
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When you get big changes it is often worth checking again this page here on seomoz: http://www.seomoz.org/google-algorithm-change
That shows a calendar of big updates at Google, although no need to check it for that date: You've probably been hit by the penguin update.
You'll find LOADS written about penguin around the web. However the 2 minute version is that it is an update that looks at poor quality link profiles. Most sites hit badly had a substantial proportion of unnatural looking links: largely those from poor quality sites and/or over optimised anchor text.
Most sites didn't get notifications in webmaster tools for this.
I hope that this helps. There conflicting suggestions as to the best approach to recover. However the general principal is to ensure that a higher proportion of the links pointing to your site are/appear to be quality, natural references.
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You wont get notified by Google if you are hit by a Penguin (the beak marks in your shins will tell you instead). Have a look at your link profile, use Opensite Explorer but also check your Google webmasters account. Look at the link profile, not just the variation in anchor text and the number of sites linking to you but also the number of pages. We've seen an account that looked perfectly natural until you see the one directory listing (designed to be from one page) that actually resulted in over 10 000 links from dynamic pages - that is unnatural!