How Site Owners Leverage Anchor Texts
Site owners make use of anchor texts most often as a reference pointing readers to some pages of the same blog or to pages of external blogs.
Say, for example, you have a given number of related posts on your blog and each of these posts can be used interchangeably as a reference post in some other posts.
Links can be comparatively used in related posts so readers can follow those links and get the information they want in full.
The most important thing is using relevant keywords in all anchor texts so your content can rank for those specific search queries.
How Google Uses Anchor Texts to Index Your Site
As explained above, pages can be linked together using Anchor texts. How does Google use anchor texts to index your content on Search Engine Result Pages (SERPs)?
When a text is hyperlinked (Anchor text), search engine spiders examine those links one after the other. During this course, they follow your anchor texts and index those pages to which they are linked. When anchor texts are used on an external website pointing to yours, such links are called backlinks or inbound links and they’re significantly used by search engines to score your PageRank.