In the good old days, Google would simply look at the anchor text and then credit the target site with the relevant backlink for that word or phrase.
But as the backlink system became abused by enthusiastic SEOers,
Google realised that it had to take more factors into consideration and expanded its algorithms to look at the relevance and quality of the website the backlink was placed upon.
It also looked at the content surrounding the backlink for both quality and relevance and also started to take a step back and look at the overall pattern of the backlink’s points at the target site.
It then started to recognise and punish unnatural activity.
This is what defeated the old SEO tactic of "keyword stuffing".
It didn’t take Google long to work out that it was not a natural occurrence for all, or even a very high percentage of the backlinks, to have the same anchor text.
So now the current definition of a good backlink is a little more complex.
The site that contains the backlink needs to be of good standing in the eyes of Google with decent quality content as well as be about the topic that is relevant in some way to the website the backlink is pointing at.
The backlink itself needs to be surrounded by high quality, relevant content.
Google is also looking for the content that the backlink points at to be something that would help the visitor to the original site; otherwise why add the backlink at all.
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