Ask Marketing Experts search engine marketing forum

[admin]

it is essential to use descriptive text in links on your site and for sites that link to you. For all hyperlinks, the text within the anchor tags will tell a spider (or more importantly a user) what the page at the other end of the link does. The text surrounding the link must be clear and usable - it must also make sense.

[7thDsites]

Linking in the manner mentioned above will help your site's placement in the search engines.

As Cayley stated; It helps define what the site is about and when these links come from sites relative to yours, it helps to SEs to establish what your site is about... therefore boosting your placement.