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The Google Algorithm assigns a Webpage a rank based on several different aspects

The Google algorithm assigns a webpage a rank based on several different aspects, including but not limited to how many times the keyword appears on the webpage. The higher the ranking, the higher up on the search engine results page (SERP) a website listing will be featured and most people are considered trusting and lazy and the combination will have them clicking on the first one or so links brought back by the search engine because they don’t want to ‘wade’ through a couple hundred pages of website listings to find their perfect match, they believe Google will do that for them by listing the prefect match as the one at the top of the list – this is not true.
‘Spiders’ or ‘crawler’ scurry to each website and collect information from the links that pertain to the keywords, listing them in an index. The same keywords that were listed in the searchers query are gathered and then these webpages are listed using the special, complex, formula the algorithms use. These ‘autobots’ have some kind of special power because they can tell the difference between an actual webpage with good content and a redirect page which is only there to direct someone to a sale or some times spam.

The placement of the keywords is an important part of how Google locates a website. The Google ‘crawlers’ look for keywords throughout a webpage – many businesses use keyword rich or keyword density articles to drive the Google ‘autobots’ to their sites – but they mostly look in the titles (another reason for keyword rich articles) and headings. However, keyword dispersal is also key to the success of a website. Website creators should avoid over use of keywords although using them through out an article, at a density of approximately 4-5 percent is a good rule of thumb.

Source Otipso

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