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Topical authority refers to demonstrating expertise in a specific subject area, particularly in the context of SEO. It is crucial for establishing credibility not only with users but also with search engines like Google. A website that excels in one topic will have limited credibility in another unless it can provide evidence of expertise in that new area. For example, if a site is recognized for its authority in SEO but attempts to cover email marketing without proper content or background, it is unlikely to rank well for that topic.