Search engines such as Google rank websites based upon, among other things, the number and quality of sites that link to them.
In order to secure a good ranking, website owners invest efforts in the link placement business.
Obviously, search engine want to be fair to the internet user and present him/her relevant search results that are not influenced by advertisers’ money. That is one of their objectives. And that’s why search engines such as Google try to develop algorithms for the recognition and filtering of paid advertising links in their search results.
When text links are integrated in a website or a blog, search engines have difficulty distinguishing between a purchased link and a normal hyperlink.
Text link ads, or sponsorships as some call them, have an interesting feature: they can fit into the web pages less obtrusively than other ad units such as banners. So, they might not easily be identified as advertisements by the search engines and, therefore, can increase the advertiser’s website ranking. Although small and seemingly insignificant, these text links, placed on various websites, can really be very powerful and generate results.