This article l stumbled on, discusses the definition and importance of anchor text and how you can use this powerful feature to get high ranking in search engines.
What is Anchor Text?
Anchor text is the visible hyperlinked text on the page.
Anchor text is the visible text of a link. So in the following link; Online Advertising Agency, "Online Advertising Agency" is the anchor text. In their 2009 survey of SEO Ranking factors, SEOmoz rated relevant anchor text from external links as the most important factor influincing your ranking in the search engines. Second most importance is external link popularity. I would dispute this slightly. The single most important factor in search engine ranking is having the very best content available on the Internet on any given subject. Achieve this and everything else will follow.