Firstly, if the blog is on your own site and hosted on the same website domain a blog is a quick and easy way to add more content to your site. The more content on your website the more chance you have of matching someones Google search. Secondly, if you have an external blog hosted on a different domain from your own website you can use your posts to increase the number of links pointing at your site, with the anchor text keywords and surrounding context you choose. You can write the blog to very accurately match the content of the page you wish to link to and increase the power of the link.
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