Anchor text connects a website to another webpage or part of a page or even one blog to another. It is used in helping the surfer to connect from one page to another or one website to another. It is also an important component in boosting the website ranking.
Anchor text is usually inserted in between posts or sometimes at the end of the post. When a surfer clicks on it, it opens to another window or another website. One thing to remember while adding a hyperlink is that, the anchor text that you use, should be related to the contents that you are linking to. Keywords anchored texts usually have a tremendous advantage in search engine ranking than plain words.
It is also equally important that any website that is linking back to your website should have an anchor text with appropriate keywords which describes your content and should be related to your contents. Otherwise, links from unrelated website or improper use of anchor text may have a negative effect on your site ranking or may be considered a spam.