A contextual link plays an important role in ranking high in the search engines. The easiest definition is to create a hyperlink using a keyword phrase. I'm going to get a little clichÃ© here and use the old standby of the Adobe website ranking number one for the search phrase "click here". If you go so a site which requires you to download something (such as the Adobe software) the website owner will frequently tell its visitors that if they want to download such and such to click here. This is proof positive that contextual link building is key to ranking high in the search engines.
I'm not going to play at being a super expert in SEO but this should be one of the first concepts learned by anyone intending to create organic search to their website. If I want to rank on page 1 of Google for a particular phrase after writing an article or webpage to target the traffic toward my only objective is to find contextual backlinks to that particular page. The best links would be external links going into my page these can be hard for some people to get and if possible sending some internal links to that page from other pages on your website will help out as well.
Where to Get Contextual Links
Now that you know what a contextual link is the next thing to do is to get them. The easiest way is to use one of the many mass contribution sites that are out there. These sites include article sites, social bookmarking sites, and revenue sharing sites that allow you to publish your own content such as InfoBarrel.
Some article sites do not require original content and using them is as simple and cutting and pasting the same article a bunch of times with the appropriate link going back to your page. Social Bookmarking Sites are easy and quick but can be tedious. A site like HubPages or InfoBarrel will enable you to publish your original content in exchange for a link (or 2) to the page that you want to rank. How you go about building your portfolio of links is determined by what you like to do or what you find that works. You can invest your time in DIY link building, purchase software to automate your link building, or you can hire someone to build them for you.
Most of the links that a novice webmaster will generate will be very low quality. Building a network of interlinking pages from a variety of sites can help to boost those low PR and/or low quality links. Low quality links are better than no links and although contextual links are the best if you can get a noncontextual link go ahead and grab it.
If you want to get traffic to your website through search engines contextual link building is one of the best ways to go about it. The more competition out there the more links it will take for you to take over that coveted #1 Google ranking.