The 'anchor text' is the keyword or key phrase you use when linking from some another website to your own. This is the hyperlinked text that is visible to the human eye. In order to improve your search engine rankings, make sure you also focus on which anchor texts you are using when building links back to your website.
To see an example of how powerful this anchor text is, go to Google and do a search for the phrase "click here". At the time of this writing, there are over 1 billion results when searching for that phrase. It would be almost impossible to get anywhere near the top of those results. This spot is currently held by the adobe site, due to the fact that many websites have linked to the adobe site with the phrase "click here".
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