Citations are defined as “mentions” of your business name and address on other webpages, even if there is no link to your website. An example of a citation might be an online yellow pages directory where your business is listed, but not linked to.
I believe that the search engines see them as a vote from the other site, etc. that your site is a great one to get information from, for a topic or in a location.
Citations are more used with news worthy sites that have your information as an advertisement, although they can click and get to your site; it is not a direct link to your site with a script built in to the site giving the citation would not be directing linking to your site.
What is citation?
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