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Of all the topics concerning search engine optimization, selecting and using appropriate keyword terms is perhaps the most important consideration of all. But it takes a lot more than simply identifying the right keywords you want to target. It's also important how and where they are used.
Obviously keywords are the basic building block of any SEO campaign. Ultimately it's these terms that people are typing into Google that you are wanting your website to come up on page #1 of the results for. Selecting the right keywords is a discipline unto itself, requiring analysis of both the search engines and your competitors.
As a general rule you're looking to target keywords that are getting as much traffic as possible, but with the least amount of competition. It does no good to go after a highly competitive term with a brand new website no matter how much traffic that term is generating because your odds of breaking through to get any of it are almost none. Likewise, it does you no go to rank #1 in Google for a term that's not receiving any searches. It produces exactly the same amount of traffic. None. So the sweet spot is somewhere in the middle... and depends on your specific situation. It's case by case everytime but do the proper research and you'll identify a handful of terms with medium traffic and competition where you can win... and start getting traffic.
Before you start working on backlinks or publishing content it's critical to perform an in-site evaluation to gauge how often (and where) your keyword terms are being used. Once you've identified your ideal terms to target, now you need to pay attention to how those terms are being used on your site. In the past you could simply use your keyword terms a lot on your site and that would indicate to the search engines to send traffic your way for those terms... but no more! Be very careful about using your terms too much on your site. Basically just use them a natural amount. Meaning, read the content on your site and have your terms appear in a natural way, not over and over again all over the place. Google penalizes sites with keywords appearing too frequently.
Also, pay attention to where your keywords are used. Specifically, if you have them in header tags like H1, H2, H3, etc. that's fine but then be very sparing with them elsewhere since header tags are weighted more heavily. Likewise if your keywords are included in your title and meta tags, consider pulling way back on using them too much in the body content of the page.
Just enter the URL into this tool and it will return a list of what the search engines see on the site in terms of keywords. Of course lots of the words will be generic and simply happen to show up a lot on your site. That's fine and Google is mainly looking for more unique types of terms. If you find that your keywords are coming up with really high densities... go back and remove a bunch of them (change the language to something else) until you get to a more reasonable level.