Contextual link building

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Contextual links are links deep from the content of your webpage and that content is the core part which decides the uniqueness of a webpage. Hence, giving links from that section transfer optimal page power to linked ones.
They help search engines in developing relevancy factor for both the pages i.e. linking and linked ones.
You cannot have all the information on one webpage. Moreover, this is good to divide huge information in to small chunks. Now these chunks can be linked internally with prime keywords to optimize them.
Linking to authoritative and well recognized external resources like Wikipedia (citation) increase credibility of you content for search engines, since it means that written content is not junk instead it is researched based and resembles to the linked webpage.
Contextual links result in lower bounce rates. It is comparatively easy for the user to navigate your website through links in content since they are reading it. User may not bother to click on links in other navigational schemes like menu, footer or sidebar links.
Enriched reader experience is highly appreciated by Google. This results in higher rankings in the SERPs.