Questions
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Subdomain vs Subdirectory - Specific Case: A big blog in a subdomain
One of the advantages of migrating a blog into a site's structure is outside of the realm of SEO, but can be helpful in making a case to do this. I have migrated several blogs into sections of existing e-commerce sites, as "resource centers". These were not pure migrations, but rather restructuring of the content into pages whcih co-exist with merchandising on the e-commerce site. Here, the advantage is that once a visitor is attracted to a content page on the site, they are more effectively converted into an e-commerce prospect. This is especially true if the blog articles are restructured to include merchandising elements. But even if not, if the only difference is that the visitor is now on a site whose navigation structure includes all of the e-commerce merchandising, they are more likely to convert on such a site. So, the benefit is more about converting customers than attracting visitors. One way I've tested this is to pick a relatively valuable single page, and migrate just that to an on-site page, with a one-to-one redirect. You will have to wait past an initial period where both of your pages may co-exist in the SERPs. But once the old blog page drops out and the new page comes in, then you can test the longer-term impact. Again, the number of visitors may actually be smaller, but you might more than compensate for that by converting more of those visitors.
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