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Cloaking is another blackhat tactics i have talked to SEOClark who is expert on SEO he says a very effective way to generate huge amounts of very targeted search engine traffic.
He says Cloaking is defined as "delivering one version of a Web page to Web robots, and another version to human users". Black hat cloaking means feeding crawlers with a zillion keyword optimized content rich pages, while human visitors get redirected to a sales pitch when they click the links on the SERPs. Examples of white hat cloaking are geo targeting, internationalization, browser specific page optimization, links and other content visible to registered users while robots and unregistered visitors get a sign-up form, crawler-friendly URLs with shortened query strings and so on. Search engines do not penalize legitimate cloaking, and they cloak themselves
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