Final answer:
Search engines analyze the text of links, referred to as anchor text, to understand the content and context of the linked page, contributing to its SEO. Links with relevant, descriptive anchor text that lead to authoritative sites can positively influence SERP rankings. Adhering to best linking practices ensures avoiding penalties.
Step-by-step explanation:
When you include a link with the anchor text Fashion Deals on your website, search engines process this information in several ways. The link is an indicator of the content users can expect to find when they click on it, which serves both users and search engines to understand the relevance of the linked page. Furthermore, the anchor text itself plays a crucial role; it's the visible, clickable text in a hyperlink, and it generally gives users and search engines context about the page the link is pointing to. Hence, it should be relevant to the content of the destination page.
Search engines use sophisticated algorithms to determine the quality and relevance of linked pages. The search engines analyze the anchor text to better understand what the page being linked to is about, contributing to that page's search engine optimization (SEO). If the anchor text is relevant and the linked-to website is authoritative and trustworthy, it can positively influence the ranking of that page in search engine results pages (SERPs).
It is also important to use anchor text that is descriptive rather than generic, as this provides a better user experience and can affect how search engines view the usefulness of a link. Lastly, while creating links, it's necessary to adhere to best practices to avoid search engine penalties for manipulative linking strategies.