Anchor Text is the actual text that is hyperlinked to your site. In other words the bit of text that people will click on.
Using good anchor text is important. Google uses it to assess what your site is about. It’s good to use your most important keywords in your anchor text.
So if your driving school website is udrive2day.co.uk, you don’t want U Drive 2 Day as your anchor text. You want “driving lessons in Bury St Edmunds” to be your anchor text, as that is the kind of phrase that people searching in U Drive 2 Day Driving School’s area will be typing into Google.
With my first website about learning to drive, Wanadrive, I made the mistake when I started out at getting people to use “Wanadrive” as the anchor text. Then I realised I needed people to use “driving schools” as the anchor text.