Often I will hear people say that content is king in Google. Google thrives on getting new information. The more it has, the more valuable it becomes.
If content is king, then keywords are the queen of Google (or any other search engine).
Keywords (or Keyword Phrases) mean something different, depending upon who are you...Actually, the meaning changes depending upon WHAT you are doing at the moment.
If you are looking (searching) for something, then Keywords are words that you type into the computer to try finding something (information) about something related to them.
If you are writing something for people to find on the computer, they are words that would be part of the Index that you see in the end of a book. The Index allows the reader to find specific things within your book more quickly without having to read the entire book just to see one thing.
So keywords are what tie together (a) what the searcher want to find with (b) related material written about it.
This will not be the last time that you see anything about keywords, but this explains it on the most basic level.
Content is the work, but keywords keep the dust bunnies from collecting on that work (content).
It is important to understand this for website optimization. See the blog post Onsite SEO vs. Offsite SEO (Search Engine Optimization) for more details.
Quickly summarizing...
Onsite SEO requires that you use keywords throughout the website.
Offsite SEO requires that you use keywords in your external marketing efforts.
As you can see, keywords are...KEY.
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