In its attempt to limit webspam and low quality content and web pages, Google has recently announced a new exact match domain (EMD) update.
Matt Cutts tweeted that the update is a minor tweak that will penalize low-quality exact-match domains. He also said that the EMD algorithm update will affect only 0.6% of English-US queries. It is also unrelated to Panda or Penguin according to him.
The problem with EMDs is that since they precisely match user search queries, ranking these websites prior to the update has been relatively easy. This is why SEO and marketing experts resorted to using EMDs over the years. However, some websites with sub-par content also crawl up to the ranks just because they are exact match domains. They also tend to outrank high quality websites that choose other keywords for their domain names.
Shifts in search results concerning EMDs are expected when the update begins to take effect. The good news is that the update will only penalize low quality EMDs.
Instead of trying to bypass the new update, webmasters and business owners are advised to instead generate high quality and unique content. Moreover, developing a trustworthy brand and building actual relationships with real people is also a useful tactic.