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Linking to Increase SEO

Can someone please explain to me how "linking" increases a websites SEO? I have read some posts and some articles about linking and I am thinking of starting my own linking campaign but I do not know where to start. Any help on this topic would be greatly appreciated.
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Lets say for one keyword, you rank half way down page 2 on google uk. Lets then say, you acquire 150 half decent relevant links. Could that theoretically be enough to push you up a page, push you up one notch or have absolutely no impact whatsoever.
I hope everyone commits this advice to memory. It`s right on the money!
David Jackson
links to a website or web page. The number of backlinks is one
indication of the popularity or importance of that website or page Link building has become so important to improve search engine
positioning. There are many different ways of getting back linking.
Article Submission, Forum Posting, Directory Submission, Blog Commenting, Press Releases, Social bookmarking
Article submission is a great way to generate traffic for your site.
When your articles are informative then definitely the visitors to your
site often. This helps to get more traffic.
linking with the keyword if possible. That will double the chance of
the website to get higher rank. Some other tactics are also available such as article submission, blog posting and so on.
focus on keyword research, meta tags, keyword density, heading tags, interlinking, proper keyword usage
PPT submission
Article submission
web 2.0 submission
Social Bookmarking
Image Bookmarking
Blog Commenting
Forum Posting
For link building you can do following activities :
1. Article posting
2. Blogging
3. Guest posting
4. Press release
5. Forum posting
6. Classifieds
7. Blog commenting
You’ve probably noticed that we feel pretty strongly about content. Search engines do, too. Regularly updated content is viewed as one of the best indicators of a site’s relevancy, so be sure to keep it fresh.