Widgets used to be very useful for SEO. You could make a little piece of code that other people could add to their site. When they embedded it on their site, it would create a link back to your site with the anchor text you place in the HTML link. This would then cause Google to rank you higher in the search engines. Widgets are one of those things that search engine optimization professionals have abused. Because of this, Google is now very wary of widgets. In this video, Matt Cutt’s, head of Webspam at Google, comments on widgets for links and SEO.
Widgets for Links and SEO
It is also important to point out that if you have too much anchor text for a specific keyword, that will trigger the Penguin algorithm and you will lose your ranking.