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Keyword density is the proportion between content and key phrase. If you count the number of keywords present in terms of whole content and figure out the percent ratio, you will get the keyword density. Keyword density is a crucial factor and very important for a particular page as it determine how much is that topic relevant in the context of that particular word or keyword.
In your content the number of times the main keyword used define the keyword density. For good seo
Three to four times will be good, with everytime the keyword is made bold, underline and italicized.
Hper link within the posts of your blog or external link.
Keyword density is how many times a particular phrase appears in web pages at total number of words. If your page total 500 words and your keywords is cheap hotel so and cheap hotel repeat in 20 times so your keyword density is 4%. Keyword density 3-4% is good for a web page.
Keyword density=how many times keywords repeat / total number of word * 100
keword density is the number of times the keyword has been used in your blog or article for example if your blog is of 400 words and you have used keywords 4 times so the keyword density will be 1%.
Peter has it right, just to add keyword density was always a guessing game as to how densely you could pack in a keyword before it wold be considered unnatural manipulation by the search engines, since Google's renewed interest in site quality, SEO methods from 5 years ago may not work any longer or may actually get a page penalized.
The hummingbird things seems mainly to do with accepting more natural language in search queries, but be assured keyword targeting is not dead, it's still at the heart of their paid sponsored search Adwords system.
http://searchengineland.com/google-hummi...
It's better to write first for your readers and not worry so much about manipulating the search engines, it would pay to have a target list of keywords to target when creating content, but just use them where it naturally fits.
keyword density is outdated term that measured what is rate of repeats of keywords.
Let you have article with 100 words and your keyword is there 5 times. This mean that keyword density is 5%.
But with Hummingbird algorithm make this parameter outdated and useless.