I think that both are equally important. But - and keep this in mind, if you submit your site to a lot of spam filled directories, that puts your site in a bad neighborhood. And, if you do excessive link exchanges, your site can receive a penalty that could have a negative impact on where it ranks in the results pages. There are certain things that you can do off site that can have a serious negative impact on your site. But the same thing goes for onsite as well. If you start linking to spam filled sites, your rankings in the search engines might start to fall. If you link to sites that promote copyright infringement and theft of copyrighted music and movies, your site can be removed from googles index. Both on site and off site are important. And what you do with both can have a negative and positive impact.
Both are necessary as cotton string and Wax are necessary for a Candle. You need both things to make a Candle. That is applied here- you need off page and on page both to do SEO. You can't choose one. You got, what i wanted to say...
You know on-page and off page optimization plays different role in SEO and they are both extremely import in every way. Google loves off page while Yahoo loves on-page and they both helps your site to be ranked. I can say that they both helping each other to have a better output for your site.
When we in the industry refer to "off page," we're talking about items external to your site: link generation programs, social media efforts, and buying links. "On page" refers to things like copy on your Web site, SEO-friendly Web site design, SEO-friendly code, title tags, meta descriptions, meta keywords and internal linking. Both are complimentary to each other.
Important Yes I agree. Google loves off page optimization while yahoo loves on page. A Little difference in their policy. Good topic.8)
both of them are significant factors that search engines do consider in ranking websites. so it's necessary to give them both importance and follow the quality guidelines of search engines when doing on and off-page optimization.