The true definition of “keyword density” is the ratio of the word that is being searched for, ie the keyword, against the total number of words appearing on a given web page. If your keyword occurs only once or twice in a page of 500 or more words, obviously it has a lower keyword density than a keyword that would occur six or seven times in a page of similar length.
As far as search engines are concerned, if a particular keyword has a higher density on that particular web page, then the chances of that page obtaining a much better search engine ranking increases almost exponentially.
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