It means the anchor text is "bingo." This is the keyword the site wants to rank well for in the search engines.
No other part of the link will show up on the page except for the word "bingo."
To answer your question, If simply posting the word bingo is an advertisement in your mind, then yes, you are advertising bingo.
The bigger question is, how does bingo relate to your site? If not at all, forget a link exchange. If it does relate to your site, put the link up. Just check to see that the other site does and maintains the favor for you.
Hint: Getting one way inbound links pointed to your site is much more relevant to the search engines than reciprocal linking.
