The anchor text in page content is the clickable text in a hyperlink that helps to determine the ranking that page will receive in search engines such as Google, Yahoo, Bing, etc. Since anchor is a signal for relevance in search engines its manipulation or overuse is discouraged by search engines. Google, for example, will penalize excessive use of page anchor text as it considers it spammy and a user-unfriendly practice. There are various types of anchor text but the preferable one for its usage is skewed in favor of nature anchor through content creation with natural links. Back-links are a huge part of the search engine algorithm. When initiating a linking campaign, it is therefore vital that external sites link the appropriate keywords and terms in the anchor text.
In most cases linking anchor text will use the company name as anchor text with no description of the target company’s products or services. Sure, it may be great for branding purposes, but it isn’t usually needed.
Here is an example using fictional company “Acme Plumbing Supplies”:
Most people will link simply using the terms “Acme”. This is alright, but it does not describe the company’s products or services, nor provide any context. By adding the word “plumbing” or term “plumbing supplies” (i.e. “Acme Plumbing” or “Acme Plumbing Supplies”), you may be able to drive additional traffic that may not have otherwise attained the corporate site. This is what search engines frown at and should be avoided.