Key words can be described in one of two ways; first a key word is something a person searches on, second it's a word(s) that describes the main topic of the page. A key word is your hook, the reason why the page exists. Search engines use key words to define how important a page is on a topic.
A page about a mustang is important and on topic if the title contains the word 'Mustang'. The page is more on point if it contains the term Mustang many times. The page is even more relevant if it contains the word Mustang near the top of the page rather than near the bottom. Yes, the search engine gives more importance to words near the top of the page, or words that occur often on a page, or words in a heading, bold-ed words, and even high-lighted words.

Try a few search terms from interfacebus.com on Google
rs232 bus ; 1 of about 1,530,000
interface buses ; 1 of about 2,350,000
My page comes up first out of 2 million pages on the web.
You get visited if you show up near the top of the results.
Remember the ads are key word targeted too, so write a page that may cover a key word or integrate the key words into your page.

What is Google Page Rank


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