Using tags to increase traffic
Here is the definition of tags from Technorati themselves:
Think of a tag as a simple category name. People can categorize their posts, photos and videos with any tag that makes sense.
Basically, tags allow you to categorize your blog posts with Technorati. Tags are usually displayed at the end of a blog post and are click-able links that take you to Technorati where other blogs using the same tags are displayed.
So why use tags? I personally feel tags help bring you traffic in two ways.
First: People searching Technorati (and other search engines that recognize tags) will find your blog by entering tags you have used in your posts. Thus bringing your blog traffic and potential readers.
Second: After posting in your blog, you can click on your own tags to find blogs with similar postings to your own. You can then visit these blogs and make comments. This takes more time and effort, but it will give your blog exposure and possibly more traffic.
To include Technorati tags in your posts, you must first register and claim your blog at Technorati (a good idea even if you choose to not use tags).
Once you have added your blog, you can either manually add tags or use a plugin to add tags. For WordPress users, I recommend SimpleTags, which I use myself here. Just download a single file and upload it to your wp-content/plugins folder.
A lot of my traffic to this particular blog has come from my use of tags.
It doesn’t take much time to add the tags to your postings, so give it a try 
[tags]Blogging, Technorati Tags, SimpleTags Plugin[/tags]
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Tags: Blogs
[...] Now, to fully optimize your Technorati experience, start utilizing Technorati Tags. I personally use Simpletags (for WordPress) but you can search for something else if you feel inclined to do so. I cover in more detail how using tags increases your traffic here, but basically tags allow you to categorize your posts with Technorati. Thus making them more likely to appear in searches for your tag keywords. Visit like minded blogs and post comments Again another free method to increasing your blog traffic, albeit more time consuming, is to simply read blogs. [...]