Anchor text is the text of an outbound link, which is clickable, and it’s readable to both the user and to search engines.
Every link coming into a site is seen by search engines as a mark of endorsement from the linking site. From the point of view of the search engine, the more endorsements, the more relevant and trusted your site must be, and thus the higher it would rank in results. How this link is described in the anchor text is considered to be one of the top three ranking factors, and remains a crucial element of any content marketing or SEO campaign.
Essentially, anchor text is a hyperlink to a given information source. In a browser it is sometimes underlined:
Anchor text does not have to show the URL that it is linking to. It can just describe the destination: