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Schema tells a search engine (including Google, Bing, Yahoo) exactly what a web page, or a certain topic on a web page, is about. This gives the search engines an exact definition of the properties on your website. Unlike an actual person who is reading the data or text on your website, search engines might not be able to ascertain the total meaning of things. For instance, the word 'blue' can be taken more than a few different ways..... does it mean the color? Or a feeling of depression? Or a certain type of media? What if the word is misspelled, and the initial intent was 'the wind blew', but instead written as 'the wind blue'. This is an extreme explanation, but it is helpful in getting the idea across: Schema allows us to define (using microdata) exactly what a person, place, or thing is specifically.

Schema recognizes the following categories:
Place, Local business etc.
Product, Offer
Review, Rating
Creative works: Book, Movie, Music, Recipe, TV series etc.
Non-text objects: Audio, Image, Video

You can also use Schema to index a webpage more specifically such as the actual type of service you provide or the specific type of product you sell.

Read more:
Schema Homepage »
Getting started with Schema »
Schema on Wikipedia »
Structured Data Testing Tool from Google »
Structured Data Markup Helper »
Data Highlighter »

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