When you are reading something online and you see that a phrase within a sentence or paragraph is a live link, the link text is what is called anchor text. This is because it acts as an anchor to the link. Here is an example:
If you are a blogger, then you should be using article marketing to drive traffic to your blog.
Anchor text is also what Google and other search engines use to rank backlinks. A website that is linked to using specific keywords will rank higher for those keywords. Links that use anchor text are weighed more heavily than links that use the URL. Here are two examples of a URL link:
You’ll notice that one included the “http://” and the other one didn’t. It doesn’t, to my knowledge, make a difference which you use. However the former (without the “http://”) is easier to read.
In article marketing, you want to use both anchor text and URL links in your resource box. (Remember, many directories won’t allow you to use live links within your article, and frown on articles that are obviously advertisements.)
You use the anchor text because it gives you more search engine juice and can improve clicks.
You use URL links just in case your article is used in a manner that won’t support anchor text. This way you are covered and you’ll still get at least one link back to your landing page.