Google and other search engines weight their Search Engine Results Pages (SERPs) ** towards the anchor text of links to a page.
Basically the text you add as anchor text has direct ranking value to the webpage the link is to and also to the page the link is FROM.
In practice it means the following text link
Passes anchor text SEO ranking benefit to the linked TO webpage (this page: https://seo-gold.com/anchor-text-of-internal-links-seo-test/anchor-text-seo-test-of-internal-links/) giving it a small boost for Google SERPs including these words and related words:
This webpage (the one you are reading now) also gets a small SEO boost for the above words as well because it’s linking out to a webpage about those words.
The SERPs boost can be demonstrated by looking at extreme examples where a pages high Google ranking can ONLY be attributed to anchor text and no other SEO factors. Googlebombs used to be the easiest examples to find and understand how anchor text effects SERPs, but Google made changes to it’s algorithm to discount Google bombing :-( Still, GoogleBombs they are worth a review.
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