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Google launched Panda in February 2011, mainly as a change in its search results ranking algorithm. The main purpose of the update was just to keep those low quality and low content sites away from the top ranking results and give the actual quality sites their due.
As an obvious result, many websites with huge amount of advertising, or those with low quality content, saw a huge decline in the rankings. Ever since Panda was launched, there have been many updates to it ranging to over 22 in total.
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