Yes, link building still matters a lot for a website ranking. But only authority backlinks works.
First, and foremost, link building is critical to SEO success because Google says so links are the number one search ranking factor alongside content.
Without links, search engines can’t analyze the importance of your pages. There are no signals from external pages nor from internal ones. They simply have little data to go on, and that gives your pages less information on which to determine rankings.
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