Search engines have two major functions - crawling & building an
index, and providing answers by calculating relevancy & serving
results.
Imagine the World Wide Web as a network of stops in a big city subway system.
Each stop is its own unique document (usually a web page, but
sometimes a PDF, JPG or other file). The search engines need a way to
“crawl” the entire city and find all the stops along the way, so they
use the best path available – links.
“The link structure of the web serves to bind all of the pages together.”
Through links, search engines’ automated robots, called “crawlers,”
or “spiders” can reach the many billions of interconnected documents.
Once the engines find these pages, they next decipher the code from
them and store selected pieces in massive hard drives, to be recalled
later when needed for a search query. To accomplish the monumental task
of holding billions of pages that can be accessed in a fraction of a
second, the search engines have constructed data centers all over the
world.
Search engines are answer machines. When a person
looks for something online, it requires the search engines to scour
their corpus of billions of documents and do two things – first, return
only those results that are relevant or useful to the searcher’s query,
and second, rank those results in order of perceived usefulness. It is
both “relevance” and “importance” that the process of SEO is meant to influence.
To a search engine, relevance means more than simply finding a page
with the right words. In the early days of the web, search engines
didn’t go much further than this simplistic step, and their results
suffered as a consequence. Thus, through evolution, smart engineers at
the engines devised better ways to find valuable results that searchers
would appreciate and enjoy. Today, 100s of factors influence relevance,
many of which we’ll discuss throughout this guide.
How Do Search Engines Determine Importance?
Currently, the major engines typically interpret importance as popularity
– the more popular a site, page or document, the more valuable the
information contained therein must be. This assumption has proven fairly
successful in practice, as the engines have continued to increase
users’ satisfaction by using metrics that interpret popularity.
Popularity and relevance aren’t determined manually. Instead, the
engines craft careful, mathematical equations – algorithms – to sort the
wheat from the chaff and to then rank the wheat in order of tastiness
(or however it is that farmers determine wheat’s value).
http://www.seomoz.org/beginners-guide-to-seo/how-search-engines-operate
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