Link spam update is a new Google algorithm update. Google recently released a Link Spam update to enhance the search quality. Many webmasters are manipulating their external links, due to such violating activities, Google had to release this update and warn those who are practicing such Link Schemes.
Watch this video to understand and comment if you have any doubt in giving sponsored tags for your external links.
Link Spam Update Details by Google
https://developers.google.com/search/blog/2021/07/link-tagging-and-link-spam-update
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