Is there any value using keywords in URL?

[pseudoengineer]

From observing competitors vying for the same keywords in Google, I have noticed that most of the top ranked pages use the keyword in their URL, usually in the second level or directory, i.e.: www.typicalcompany.com/keyword.htm. These are less competitive keywords, mostly 2 word phrases. Our site has 4 levels: main page, main product pages, secondary product pages, and spec pages.

Is there any benefit to using the keyword in the URL past the second level, the main product pages?

We have only 4 main product pages but probably 4 or 5 variations of the corresponding keyword for these product pages. Can't get them all on the second level URL, but we do have enough pages available on the third and fourth levels.

One other question: is relevancy for a particular keyword cumulative, meaning if we raise the relevance of our lower level pages for a particular keyword, will this have the effect of raising the relevance of our higher level pages for the same keyword? Or do all pages stand on their own for relevance?

[WebGuerrilla]

Hi pseudoengineer,

Welcome to WebmasterWorld.

Keywords in domain/directory/file names due help some. However, we often disagree around here as to how much.

You can find several past threads on the topic here [searchengineworld.com].