blog on subdomain or section?

I'm doing SEO for a company startup and their site is growing incredibly rapidly in terms of number of pages and I'm confident in the product and that the site will be really really successful when the development is complete as it fills a huge market void at the moment.

I am thinking I want to start a blog on the website and update it regularly as new features are rolled out etc (this is a social (sort of) website), similar to the way websites like google, Facebook, twitter, quora, etc have blogs like this.

I was wondering whether it is better to have the blog hosted at blog.website.com or at website.com/blog?

Will this make a difference to overall PR and website authority when building links etc? What are the advantages and disadvantages of either strategy?

Thanks guys.

google counts subdomain (blog.website.com) as entirely different site

to get the most out of your blog I suggest you make it website.com/blog/ like many others have done. interlinking from website.com to website.com/blog/ passes more authority than linking from website.com to blog.website.com

although if you really insist having the blog on a subdomain you could place a 301redirect on website.com/blog/ that connects it to blog.website.com

the second option. with the /blog extension.

^^+1

Subdomain should be avoided unless you want to keep the section separate.
Use /subsection.

outsidethesquare, I would concur with the others that state to use a subfolder, not a subdomain. The subfolder will let you pass the domain authority between pages a lot easier and with more effect than the subdomain.

Sounds like an exciting venture and client you have on your hands. Congrats on landing the deal! All the best!

Blog on subdomain looks more professional but for SEO related advantages, it's preferable to have it in a directory.

if the blog purpose is to help SEO for your main URL , then subfolder will be better choice compare to subdomain.
Because i the one thinking of change my blog from subdomain to subfolder as well.

Subdomain is better if you whant to separate stats and resourses for google. Plus it's easyer to put another CMS for blog. But /blog directory must more effective for your SEO.