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Isnt it better to have headlines in H1 and H2 tags instead of p tags?
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I am working with a simple site http://http://lightsigns.com/Uniko_Manufacturing_Limited.html
They seek more SEO traffic. However, the two big headlines that read "Wholesale Supply to the Sign and Display Industries" which is on line 241 and 242 of the source code, its in a p tag, i.e.
<p <span class="webkit-html-tag">style</p <span>="padding-top: 0pt; " class="paragraph_style_1">Wholesale Supply to the
and
<p <span class="webkit-html-tag">style</p <span>="padding-bottom: 0pt; " class="paragraph_style_1">Sign and Display Industries
Likewise, the product titles are in p tags, also. For example, on the Slide-in Light Box product page, http://lightsigns.com/Slide_In_light_box.html , I have done keyword research and no one is using the words slide in light box.Plus, it is also a p tag, ie. line 43 reads
style="padding-bottom: 0pt; padding-top: 0pt; " class="paragraph_style">Slide-in Light Box
If I suggest that they make an H2 tag with SEO-optimized keywords such as Display Light Box - Slide-In LIght Box, would this indeed help SEO?
In summary, is it correct to say that H1 and H2 tags are stronger signals to the search bots of what the page is about?
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I would agree that H1s are stronger than
tags for SEO, but they're still pretty minor on-page indications.
Of much greater impact would be to better-optimize the meta-title for the page, which is one of the strongest on-page SEO factors. Right now it's just the company name "Uniko Manufacturing Limited" Much better would be "Uniko Manufacturing Limited - Wholesale Sign and Display Industry Supply" or something similar.
Also, the page has no meta-description, which could severely handicap it when it does appear in search results. The meta-description does not help with ranking, but it's like a mini-ad for the page right in the search results to all ow you try to convince a searcher to click on your page instead of someone else's.
Better to focus on the highest impact optimizations first, rather than just the easiest.
Hope that makes sense?
Paul
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"If I suggest that they make an H2 tag with SEO..."
H1's carry a little more weight than H2's, so I'd suggest using an H1 if you can. Ian implied that, but he didn't outright say it

Also, the page you have listed has capital letters in it, which isn't ideal, but it's still fine. However, the lower case version does 404. So, any links that are sent to the lower case version will not result in you getting link juice to the page. I'd suggest using a 301 redirect from the lower case version to the upper case one that you have listed.
lower case version:
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"In summary, is it correct to say that H1 and H2 tags are stronger signals to the search bots of what the page is about?"
Absolutely. These tags are strong signals to search engines as to what the page is about, along with title tags and meta descriptions. You can prioritize content and break down the page with H1 through H6 headline tags. SEOmoz has a great on-page best practice guide for setting up the page, which makes sense for your users as well as search engines. Try not to spam keywords anywhere, just make sure it is "keyword friednly" but at the same time readable and would make sense to a human.
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