What it does is give your a better ranking with search engines (search engine optimization).
If you were to search google for e.g football, many sites have that word but with SEO it narrows the choice down.
E.G showthread.php?t=50 -> football-play-t56.html
Which would give better results in google.
It just narrows down the results which will attract more visitors to your site. You then have a better change of those visitors clicking adsence.
Hope that helps
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