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I have seen people (including popular digital agencies) using 1 x 1px transparent image, so that they can add page title as alt value.

Does that really increases the value of a web page or that's a spam in search engine's eyes?

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could you show us an example of were you've seen this, i havnt heard it done before as your saying but its seems something that a search engine bot would be able to see quite easily.

What i think it might be is a tracking pixel which is used by sites like quantcast and other ad / analytics providers - for more information on tracking pixels look here - http://support.google.com/dfp_premium/bin/answer.py?hl=en&answer=1347585

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not sure where i had seen that last week, one site i remembered is a slight different is inchoo, they use img tag without src img to add alt tag. see: inchoo.net/ecommerce/magento/magento-email/… –  Damodar Bashyal Nov 12 '12 at 23:55
    
i can see were they've done it, its odd becuase its the anchor image of an a tag, but without an image im pretty sure its invalid html, not the end of the world in search engines eyes, but then again i dont think they'd get any benefit. –  sam Nov 13 '12 at 0:14
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I have tested doing this with multiple images repeated in a background and the site is still page one in google after all google penguin updates ,it's better and more safe to use real pictures not blank with repeat alt tags as google will notice there is no image there, try stick to white hat seo

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I guess you are talking about something else. I meant img tag on content not background img :) –  Damodar Bashyal Nov 12 '12 at 23:56
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