Anchor text is the visible text—usually highlighted in color—that you click to follow a link. It’s essentially the sign on the door. Even before someone clicks on the link, the anchor text tells them what lies beyond it.
Anchor text provides guidance by suggesting a direction to visitors. However, meaningful anchor text can also be easily skimmed and understood at a glance, without having to read the surrounding text.
Furthermore, anchor text helps search engines determine what the linked page is about.