Search Engine Algorithms
Anchor text is weighted (ranked) highly in search engine algorithms, because the linked text is usually relevant to the landing page. The objective of search engines is to provide highly relevant search results; this is where anchor text helps, as the tendency was, more often than not, to hyperlink words relevant to the landing page. Anchor text can also serve the purpose of directing the user to internal pages on the site, which can also help to rank the website higher in the search rankings.
Webmasters may use anchor text to procure high results in search engine results pages. Google's Webmaster Tools facilitate this optimization by letting website owners view the most common words in anchor text linking to their site. In the past, Google bombing was possible through anchor text manipulation; however, in January 2007, Google announced it had updated its algorithm to minimize the impact of Google bombs, which refers to a prank where people attempt to cause someone else's site to rank for an obscure or meaningless query.
In April 2012, Google announced in its March "Penguin" update that it would be changing the way it handled anchor text, implying that anchor text would no longer be as important an element for their ranking metrics. Moving forward, Google would be paying more attention to a diversified link profile which has a mix of anchor text and other types of links.
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