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Google interprets every link on the web as a vote. Naturally, an important page will easily get links from many other pages. On the other side, no one will link to pages that are of no interest. PageRank exploits this fact and measures the importance of a page by the number and the quality of its incoming links.
A link from a page that no one links to, has very little PageRank value. A link from a page that has a huge number of incoming links carries a lot more PageRank. Both quantity and quality counts.
Google uses PageRank to determine the importance of a page. However, PageRank is a keyword independent factor (Google has the PageRank of a page before even knowing what keywords the surfer is going to use).
While high PageRank ensures the importance of a page, Google needs to know how relevant a page is to the query keywords.
Recently, Google has switched to another type of PageRank. PageRank is a general paradigm and there are endless different implementations. One thing is absolutely clear: Google does NOT use the classic general PageRank that you see on the toolbar. Only Google staff knows the current implementation. The literature is full of other variants - HostRank, SiteRank, BlockRank .. and even keyword dependant PageRank implementations. There are speculations that Google has implemented a combination of PageRank and Kleinberg's HITS algorithm.
Information Retrieval Score (IR Score)
The IR Score is a keyword dependant ranking factor. Google calculates the IR Score by matching the query keywords to words found on the page and in the anchor text of the links that point to that page. A page has a different IR Score for every different set of query keywords.
To get a high IR Score for a given query, a page needs to have the keywords in its various elements (title tag, page text, alt image tags etc.) and many keyword rich incoming links. A page cannot have too many keywords on page, but it can have thousands of keyword rich incoming links. That's why the potential of the anchor text keyword matches is much bigger than on page optimization.
Google uses the IR Score to the determine the relevancy of a page to a query. In other words, the IR Score guarantees specificity of a page to the keywords (relevancy).
The IR Score value of a link depends mostly on:
keywords found in the anchor text
keywords found on the page that gives you the link
the relative importance of the page that links to you (is it a page buried somewhere, or is it a page linked to from all other pages such as a home page)
Google combines PageRank and the IR Score to arrive at the final rank. PageRank guarantees importance, IRScore guarantees specificity. For competitive queries pages that are both important and specific will top the rankings.
Google keeps capitalization information and capitalized keywords are given slightly more weight. Go over all page elements and capitalize the keywords, wherever applicable. Capitalize your titles, alt image tags, anchor title tags, anchor texts etc.
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