SEO is the process of designing and amending a website and other information on the internet to increase traffic and conversion rates. It stands for "Search Engine Optimisation" ('Optimization for Americans'). I prefer the term "website optimisation" because that infers less of a focus on search engines and more on the human visitor.
Main optimisation activities are:
Keywords:
Meta Data, Anchor Links, Domain Name, Page Names, Keyword Analysis
Content Improvement:
Technical Quality, Readability, Keyword Density, Layout, Uniqueness, Ranking and Relevance of Inbound and Outbound Links.
Historical Data:
SERPs CTRs, Bouncerates, Requests for Domain
Backlinks:
Quality of domain backlinks are on, anchor text, number of links on page, variety of backlink locations, age of backlinks.
PPC - Google Adwords.
There is a lot for you to learn about as you can see. Just keep reading about all these things. Here is somewhere for you to start - Website Optimisation/Optimization/SEO



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