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I just found this post on SEOmoz that explains the significance of Co-citation overwhelming the concept of anchor text.
http://www.seomoz.org/blog/prediction-a ... ard-friday

Co-citation is a evolving ranking metric that has become more important in the world of SEO. It relies less on the link and anchor text used within the link, and more about what the text located around the brand name says about that brand. What do you think? How do you approach co-citation and branding when the keywords are no longer the only game in town?

I hope this link will also help you to know more about it:
http://www.ethicalseoconsulting.com/org ... -backlink/

I watched this today and though it seems like this may signal the end of link building, I don't think it will. It seems like co-citations will need to be done in very high numbers to effective, even more so they should be done from authoritative websites. Cool idea and it nice to see Google give you credit when someone talks about you, not only when they link to you.

Yeah, I saw this too when it was posted. It will certainly grow in importance, but not replace link building any time soon. I think it's a natural thing to include though, since there are many fairly authoritative media outlets that (mistakenly) horde pagerank by nofollowing all outbound links. Also some wikis can be pretty good authorities, but have to nofollow links to prevent abuse. I'd imagine with cases like that Google would be looking to see that that a citation in an article stays on the page for a decent period of time before counting it to prevent the kind of abuse that made wikis nofollow all outbound links to start with (otherwise you end up in exactly the same place as far as issues with SEO spam submissions).