Keyword Anchor Text:

The uses of anchor text is a very important technique in assisting a website with search engine rankings. This can pertain to both on page as well as off page optimisation. This is the process whereby one would have a hyperlink that links to another document on your own webpage or an external source. If your anchor text has relevant keywords in it, then the page you are linking to will rank well for the particular keyword. For example, Cyberfox offers Professional Website Design at an affordable price. The words Professional Website design is linking to a page within my website and this is a relevant keyword search that is ranked by the search engines. The anchor text does not necessarily have to be the same name as the page it is linking to but it must be relevant. If you are talking about a dog, then it will be fine to link to a page about animals rather than to a page about cars.

Google uses algorithms that calculate the number of links to a particular page in order to rank it in terms of importance. The more links to a page, the better a page will rank. However, there is a twist to this. The links need to be coming from quality sites to make this effective. It is better to have a link from a 1 quality site than to have 5 links from low quality sites. 

On Page optimisation:

This is the anchor test that links to another page within your own website.

Off Page Optimisation:

This is the anchor text that would link to an external page within another website eg. Wikipedia.