Originally Posted by lamitbore
Key word selection is a very important aspect of website marketing. Online marketing has gained its popularity mainly due to the easiness of the search for the products and services.
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The OP is not asking about keyword selection, rather whether keyword density affects his Google ranking - which it does. I do agree that Google sees your site as over stuffing keywords. Cut back a bit, to 2-3% and I'm sure you'll see an improvement.