It has become popular for companies to create corporate blogs for promotional purposes.  Blogging, for various reasons, just seems to facilitate "buzz."  Strictly from a "mechanical" SEO perspective, though, does it make sense to house the blog in a subdomain — that is, blog.yourcompany.com, or a subdirectory — yourcompany.com/blog?

To be honest, I believe that if your primary focus is to harness the "juice" from links, a subdirectory just plain makes more sense.  On the other hand, many SEOs who I have respect for have gone the subdomain route.  Maybe nobody really thinks about it.  But the way I see it, all that link-equity is effectively pointing to a new (sub)domain.  Sure, pointing lots of links from the subdomain blog to the corporate site will also have a positive effect, but I doubt it is as powerful as the links directly pointed at the corporate site in the first place (as it would be with a subdirectory). 

Historically, some have argued that subdomains pose some advantages.  That may have been true then, and may even be true to a certain degree now.  My evaluation is that this is subject to change over time, whereas links directly to the corporate site are less subject to the whims of search engine algorithm changes.

So …
Unless you are already an authority-site and want to create new equity in another domain, I'd probably suggest using a subdirectory.  Doing so will more directly harness the link-equity garnered by your blog.

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