After doing a search on this site for the topic I did find a number of useful post. Unfortunately they were quite old and didn't take into account all the changes since Panda\penguin.
I have recently started a new Ecom site and wanted to add a blog to the site. The Ecom provider only allows a sub-domain to be used for this purpose. How is this handled now with all the latest changes from Google? My reason for adding this blog is for increased traffic and to gain authority in my given niche. I do want to take advantage of back links/Social the blog may produce to increase the rankings for the main site. As I understand it the best way to go about adding the blog is via WordPress on its own domain and not theirs or could I use the free WordPress option? Any guidance would be greatly appreciated.
[edited by: lorax at 1:06 am (utc) on Mar 26, 2013]
Sub-domains and sub-directories are pretty much even in value as far as Google goes. Matt C said so in one of his videos (though I don't have it at hand right now). As long as your blog is on the same topic line as the main site, the sub-domain should be fine. Just make sure the hyperlinks are natural and useful and your posts are not spammy. IMHO of course.