QUOTE: “I think there is probably a misunderstanding that there’s this one site-wide number that Google keeps for all websites and that’s not the case.  We look at lots of different factors and there’s not just this one site-wide quality score that we look at. So we try to look at a variety of different signals that come together, some of them are per page, some of them are more per site, but it’s not the case where there’s one number and it comes from these five pages on your website.” John Mueller, Google
Search engines use complex mathematical algorithms to interpret which websites a user seeks. In this diagram, if each bubble represents a website, programs sometimes called spiders examine which sites link to which other sites, with arrows representing these links. Websites getting more inbound links, or stronger links, are presumed to be more important and what the user is searching for. In this example, since website B is the recipient of numerous inbound links, it ranks more highly in a web search. And the links "carry through", such that website C, even though it only has one inbound link, has an inbound link from a highly popular site (B) while site E does not. Note: Percentages are rounded.
The transparency you provide on your website in text and links about who you are, what you do, and how you’re rated on the web or as a business is one way that Google could use (algorithmically and manually) to ‘rate’ your website. Note that Google has a HUGE army of quality raters and at some point they will be on your site if you get a lot of traffic from Google.

Optimization techniques are highly tuned to the dominant search engines in the target market. The search engines' market shares vary from market to market, as does competition. In 2003, Danny Sullivan stated that Google represented about 75% of all searches.[64] In markets outside the United States, Google's share is often larger, and Google remains the dominant search engine worldwide as of 2007.[65] As of 2006, Google had an 85–90% market share in Germany.[66] While there were hundreds of SEO firms in the US at that time, there were only about five in Germany.[66] As of June 2008, the market share of Google in the UK was close to 90% according to Hitwise.[67] That market share is achieved in a number of countries.
Thanks for the helpful information discussing the differences and similarities between SEO and SEM. The information was enlightening because a search engine optimization company like the one that I own is relatively new at starting. We believe everyone should always check out their sources because every different perspective is very different so all approaches can be understood differently.

But Google isn’t the only reason why keywords are important. Actually, it’s less important, because you should always focus on the user: on your visitors and potential clients. With SEO you want people to land on your website when using a certain search term or keyword. You need to get into the heads of your audience and use the words they use when they are searching.

Baseline ranking assessment. You need to understand where you are now in order to accurately assess your future rankings. Keep a simple Excel sheet to start the process. Check weekly to begin. As you get more comfortable, check every 30 to 45 days. You should see improvements in website traffic, a key indicator of progress for your keywords. Some optimizers will say that rankings are dead. Yes, traffic and conversions are more important, but we use rankings as an indicator.