Exact Match Anchor Text
An exact match anchor text is anchor text identical to the keyword the target page is meant to rank for. If a website links to you with the anchor "winter jackets for men", and that is the keyword the page targets, the link is exact match. Anchor text tells Google what the target page is about, and exact match is the most direct version of that signal.
From cheat code to liability
In the early years of SEO, exact match anchors worked almost as a shortcut, and the industry used them freely until the Penguin update started acting on artificial link profiles. An overweight of exact match anchors is one of the clearest fingerprints of manipulated link building, and that assessment now runs continuously inside Google's spam systems. A pattern of heavily optimized anchors from external sites reads as bought, however strong the domains behind them.
What a natural profile looks like
Natural links have messy anchors. People link with a brand name, a bare URL, a "read more here", and only rarely with the perfect keyword. An organically grown external profile therefore leans on brand and navigational anchors, holds a fair share of partial phrases, and keeps exact match as the exception.
Internal links follow a different logic, since the site owner writes the anchors: only the external profile falls under Penguin's reasoning. The guide to anchor text strategy covers how the distribution is managed.