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This is the simplest way of promoting a website. It's a part of the overall search engine optimization process. This is that crucial factor which when done in a proper way can benefit you the most. Link building in terms of SEO can help you in the following two ways the most:
1) Increase in traffic generation and from quality viewers
2) Faster indexing and hence visibility from search engines
Search engine optimization is basically getting your site in front of your potential customers. This basically tells you who your target market is and how competitive your market is. SEO's prime importance is to get you ahead of your competitors and be there.
SEO can be categorized into On-page optimization and Off-page optimization ; both carrying equal amount of weight age as far as SEO is considered.
More information on Search engine optimization
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