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That is a huge discussion but my advice here would be first, don't try too hard. If you do, you will get hit by the dreaded over optimisation penalty and Penguin will come down hard on you. If you want to optimise for a phrase, just make sure you have that at least in your URL (where possible), the page title and to a lesser degree, the description. Then focus on making the content as good as is humanly possible. Look at what your competition are doing and then improve on that - I don't mean copy it though Local SEO is a different matter and hard to get right if you don't have office in these locations. I have approached this in many different ways in the past but try not to just create pages that are called /locksmith-bristol/ without having a good reason for the page to appear there. You can do it, you just have to be careful and remember that every page must have content that is 100% unique. However, that doesn't mean spinning it or just making it similar - it has to be totally unique and can sometimes help to get a 3rd party write this for you. Hope this helps a little, and I am sure you will get lots of other advice Andy

Ahh I see thanks so much for your reply - is it best to get an XML site map rather than the one I have? Thanks, Abi

Are you sure your hosting plans doesn't cover more than one site? You can probably set up a new site right along site the existing one on the same server / hosting package. If not then you can easily upgrade your existing hosting contract. If these sites are directly competing for the same keywords it probably makes sense to keep them separate and go with some other hosting company so that they are seen as being distinct.

Just another thought if you dont mind pls .... although the new service is not connected to locks and keys, its still a roadside recovery service as is our existing auto locksmith service - so there is a slight connection in that we offer a emergency roadside service - Bearing this in mind I think you are right in that a new site is best.  In addition to  a new site, does it make sense to have a landing page for the new service on the lockcity web site for google searches, but not have it linked into the menu? i.e. lock city customers cannot see the new page from the menu, but if people land on the new page through the search engines, they can still navigate around the locksmith site? Thanks, Abi

Thanks, I will change slightly, although wordpress is not visually displaying the H1 on the homepage - its hidden text - very strange! Thanks for all your help!