SUBDOMAINB.site.com VS site.com/SUBFOLDER

[trigatch4]

As far as keywords and SEO, is it, in general, better to use a Subdomain or Subfolder.

For example, I'm planning on developing Annapolis.MD into a minisite and focusing Adsense on categories like real estate and hotels. Would it be more effective to use subdomains (http://hotels.annapolis.md) or subfolders http://www.annapolis.md/hotels.html)?

Would love some opinions on this and any advice on development ideas. Thanks in advance

 

[Keynes]

Both should work fine for SEO, although I'd recommend subfolders for navigation purposes (as subdomains often confuse visitors and lead to lost traffic)