While that theory is sound (when focused on a single page, when the intent is to deliver utility content to a Google user) using old school SEO techniques on especially a large site spread out across many pages seems to amplify site quality problems, after recent algorithm changes, and so this type of optimisation without keeping an eye on overall site quality is self-defeating in the long run.
While Google is on record as stating these quality raters do not directly influence where you rank (without more senior analysts making a call on the quality of your website, I presume?) – there are some things in this document, mostly of a user experience nature (UX) that all search engine optimisers and Webmasters of any kind should note going forward.

Search engines use complex mathematical algorithms to interpret which websites a user seeks. In this diagram, if each bubble represents a website, programs sometimes called spiders examine which sites link to which other sites, with arrows representing these links. Websites getting more inbound links, or stronger links, are presumed to be more important and what the user is searching for. In this example, since website B is the recipient of numerous inbound links, it ranks more highly in a web search. And the links "carry through", such that website C, even though it only has one inbound link, has an inbound link from a highly popular site (B) while site E does not. Note: Percentages are rounded.
QUOTE: “Search engine optimization is often about making small modifications to parts of your website. When viewed individually, these changes might seem like incremental improvements, but when combined with other optimizations, they could have a noticeable impact on your site’s user experience and performance in organic search results.” Google Starter Guide, 2008
A poor 404 page and user interaction with it, can only lead to a ‘poor user experience’ signal at Google’s end, for a number of reasons. I will highlight a poor 404 page in my audits and actually programmatically look for signs of this issue when I scan a site. I don’t know if Google looks at your site that way to rate it e.g. algorithmically determines if you have a good 404 page – or if it is a UX factor, something to be taken into consideration further down the line – or purely to get you thinking about 404 pages (in general) to help prevent Google wasting resources indexing crud pages and presenting poor results to searchers. I think rather that any rating would be a second order scoring including data from user activity on the SERPs – stuff we as SEO can’t see.

In addition to on-page SEO factors, there are off-page SEO factors. These factors include links from other websites, social media attention, and other marketing activities outside your own website. These off-page SEO factors can be rather difficult to influence. The most important of these off-page factors is the number and quality of links pointing towards your site. The more quality, relevant sites that link to your website, the higher your position in Google will be.

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