They are both effective.
I have to say, after years of spending a lot of time "tweeking" my site, getting links, and doing the thousand and one things that are recommended for good SEO, I've found onsite optimization is far better than offsite.
The single most important thing is that your site contains relevant, current, up to date information on your site's subject. That's new articles, not simply new comments on old articles.
If your site is linked to by thousands of others with scant regard to who is linking too you, then Google doesn't rank you very highly (if at all).
However, if your site contains information that others want to read, then others with relevant sites will link to you, and Google will rate your site.
So content ... good content ... new content ... more content. Content is everything.
THEN ... make sure your titles and keywords and descriptions match your brilliant content.



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