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in elements that describe it semantically paragraphs in p tags, lists (many times navigation links) in ul (or if ordered ol) tags, tabular data (like graphs or excel documents) in tables, definition lists in dl tags, and headers in h1-6 tags. The use of non-semantic tags divs and spans mostly along with liberal use of classes, ids and Cascading Style Sheets (CSS) then allow the designer to have semantic content in semantic tags but still display it in any manner that they wish.
The reason semantic design is important is because it tells search engines what the data means it outlines header hierarchies to allow for keyword sensing and allows it to sense how data is formed and related (paragraphs under a header being a "section" etc). Since search engine spiders can only parse and not actually read the data this allows them to parse the site more intelligently and results in better keyword matching for the site.
The final internal design facet is likely one of the most important the title tag. This is a tag that is only shows at the top of the browser window, above the address bar and is thought in the SEO community to be the most highly weighted element by spiders. Having unique, meaningful, concise, and useful titles on each of your pages is the first step to being indexed for the terms you want.
After the title tag is surmised that the header elements h1-h6 are the next most heavily weighted internal element because they perform a function like a "table of contents" for the page. These should be used intelligently and not abused though as this can be considered "black hat" as well.
External Link Building
Beyond good internal design, a well-executed inbound linking strategy is key to SEO. In the SEO community it is thought that this is actually the most important overall part of the process. Search results tend to sway towards this thinking as many times a site that has poor internal design but strong inbound linking for terms will rank higher (many times much higher) than well designed sites with poor inbound linking.
Google is the largest search engine and likely the one that values this most. Although it's algorithm is unknown many hypothesizes have been put forth by the SEO community and results seem to provide validation.
The first hypothesis is that search engines (specifically Google) place an amount of "trust" on a domain and page (sometimes confused with PageRank). This trust for search terms shares a one-to-one relationship with
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