What is anchor text?
Anchor text is the part of the hyperlink that seen by a visitor on a website (the clickable text). For this example, the html code will be www.website.com and the anchor text will look like anchor text.
So this html code:
<a href="http://www.website.com">anchor text</a>
Will be seen as anchor text.
What Anchor Text Does
Google and other search engines count each link as a vote for the linked to website by the linked from site. Looking at all components of a link from a website will provide better insight about the vote being cast. Google basically uses anchor text as a vote for a webpage, but what is the vote for? Anchor text represent the actual vote. You're saying that you're voting for the site because the site embodies (what you put in your anchor text).
About the Author
John Dessommes manages search engine optimization and pay-per-click advertising campaigns for multiple independent insurance agencies nationwide. He also handles SEO for GetITC.com and ITC’s other web properties. John stays on the cutting edge of industry best practices to ensure that visibility is maximized and opportunities are not missed. He has considerable knowledge about on- and off-site optimization, AdWords, business listings and social media.More Content by John Dessommes