Do subdomains increase the main domain's popularity? Will the subdomain's traffic increase the positioning in the search engines results of the main domain?
To some extent I would say yes, sites get a boost in most search engine algorithms when you use your important keywords in your domain name. But if you're targeting ten or twelve keywords, they're hard to put into a single name. In this case Subdomains give you more opportunity to include keywords in your domain.
The importance of subdomains is great when searching for deep web information. There is no standard list of prefixes, but consider jobs.domain, commerce.domain, finance.domain, events.domain, calendar.domain, help.domain, forums.domain and directory.domain (as well as news.domain and blog.domain).
But let me clear that a sub-domain is completely different from a add-on domain name. Domain within a domain is a normally named as sub-domain is the most basic everyone knows.
First of all you should only consider a subdomain only if your site have many pages and you have enough time to build links for your sub domain, because it would be considered as a separate site by search engines. If your sub domain is carrying quality content and backlinks it will help directly your primary domain too as if they are different sites. Now this will help you to build new links and increase the rankings of your primary domain too. This is also help u cut costs as u’ll not have to buy new domain name and hosting package if you plan to create a subdomain and alongwith promote ur main site.
If a subdomain is worked properly with a plan, can help you in brand
recognition between your subdomain and your primary domain and help you
establish your brand value.