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How often should I update the content on my website(s)
There's no simple answer.
Is it a news site? You should be updating in real time, as the news comes in.
Is it a dictionary or quotations site? You may be able to get away with updating every five or ten years.
If you want a serious discussion of this topic, pose your question in:
1) You'll need to update when the content becomes obsolete (or incomplete from the POV of the typical user), and...
2) You'll probably want to to add new content fairly often if you want to build an audience of repeat visitors.
Also, if you aren't already doing so, you might want to diversify your revenue stream with CPM ads and/or affiliate links. (CPM or impression-based earnings are likely to be especially useful on a site that gets a lot of repeat visitors who may not be inclined to click through on recurring AdSense ads from the same advertisers.)
There is a kind of common belief that SEs like frequently updated sites and rnk them higher. I don't know if there is a firm evidence for that.
I'm skeptical, just because some topics don't lend themselves to frequent updating and sites that hardly ever get updated routinely rank #1 (or close to #1) for keyphrases that have hundreds of thousands of search results. (Think metric conversions, world climate, electric plugs, or Shakespeare sonnets.)
Here is one quote from the patent:
"For example, the rate of change in a current time period can be compared to the rate of change in another (e.g., previous) time period to determine whether there is an acceleration or deceleration trend. Documents for which there is an increase in the rate of change might be scored higher than those documents for which there is a steady rate of change, even if that rate of change is relatively high. The amount of change may also be a factor in this scoring. For example, documents for which there is an increase in the rate of change when that amount of change is greater than some threshold might be scored higher than those documents for which there is a steady rate of change or an amount of change is less than the threshold."
There is tons of great info in that patent that was filed, makes excellent "light reading" when you get a chance.
Also, this is the AdSense forum, so the relevant question would be whether AdSense cares about how often the content is updated. So far, we haven't seen any proof that it does. (Which isn't to say that publshers shouldn't update their content when it's appropriate to do so.)
I'm a bit confuse. Isn't it against adsense rule to display the competition's ads on yourt site?
I'm not sure exactly what you mean.
If you're asking whether it's against the rules to use somebody else's AdSense code on your pages, the answer is "Don't do it." (You wouldn't want to anyway, because the other publisher would be earning money from your pages.)
If you're asking whether it's against the rules to let AdSense run ads on your site for a business or site that competes with yours, then the answer is "That isn't a problem." For example, if you own McDonalds.com and AdSense runs a Burger King ad on your pages, that's not a violation of the AdSense rules.
So you can maintain extremely high rankings with non updated content, this content doesnt even exist - it's an error page. Poor #*$! is missing out on some serious traffic and money.