Stock Intelligence
Why Web Traffic Data Is the Perfect Alternative Data Set
Choosing an alternative data set is already a daunting task. To add to that challenge, AIMA estimates that there will be 5,000 different alternative datasets available by 2024. These datasets vary in quality, usability, breadth, uniqueness, and countless other factors. Similarweb’s web traffic data is one of the world’s premier sources of alternative data. Here’s why:
The World Is Shifting Online – Are You?
Over the past twenty years, the internet has dramatically changed our world and our economy. According to the Internet Association, the internet sector accounted for $2.1T, or 10% of the GDP in the US in 2018.
Back in 2000, the most valuable companies in the United States were General Electric, followed by Exxon, Pfizer, and Citigroup. Fast forward to 2020, and those names have been replaced by Microsoft, Apple, Google, and Amazon. Traditional industries have been superseded by today’s internet giants.
This change isn’t reflected only in the stock market. Traditional business models, such as retail brick and mortar, have significantly shifted their operations to online services in order to accommodate the demand. The internet has transformed the software sector as well, from one-off purchases to continuous releases, recurring subscriptions, and SaaS.
This evolution is far from complete. Every year, more businesses are moving online, relying on the cloud, and connecting with their clients (B2B and B2C) via the internet. Having visibility into the online presence of these businesses is critical now, and will only become more important.
Web Traffic Data Offers Complete Coverage of Public and Private Companies
Many alternative datasets offer limited ticker coverage. Some datasets only track consumer-facing businesses, while others are focused on a specific industry. Web traffic data offers visibility into every single industry using the internet to conduct business, public or private.
From the obvious – tech companies – all the way to consumer staples, through telecoms and the financial industry, if a company is connected to the internet, Similarweb will have data on it. Whatever your focus, mandate, or coverage area, Similarweb can provide the data and visibility you need to perform a complete, thorough evaluation of any company.
Multiple Web Traffic Data Points on Every Company
Similarweb’s web & app traffic data set includes many data points, in contrast to other datasets. Web traffic data includes traffic metrics, such as the number of visits to a website and the number of unique visitors to a website. This allows us to know if a website is growing and gaining traction, or if it’s struggling to attract new users.
On top of traffic metrics, the data set includes data points on users’ engagement with a website, how long were they on the website, and how many sessions did each visitor initiate. These engagement metrics allow investors to evaluate the stickiness of the user base; a strong user base is both large in numbers and highly engaged.
Beyond web traffic data, Similarweb’s offering includes app data. Many companies today offer an app, and it often complements a company’s web offering. Here as well, the metrics include both quantitative and qualitative data, from the number of downloads an app has, to how many times per day a user opens it on average. Combining web and app data paints is the best way to get the full digital picture of any business.
In addition, Similarweb’s data includes metrics on client acquisition strategies, as well as search data, and even conversion data. Is the business growing organically, or is it buying users? What are the latest search trends on Google? What is the percentage of users converting to a sale on a specific website? These questions are easily answered with Similarweb data.
The number of insights and data available on each and every website is unrivaled, and the metrics mentioned are only the tip of the iceberg. During your demo, feel free to ask your best and deepest questions. We’ll gladly show you how to independently research and answer your questions using the platform and API.
Uniqueness of Data
This web and app traffic data set is proprietary and unique to Similarweb. The data is derived from an unrivaled blend of digital signals sourced from external partners, public data sources, anonymous behavioral data, and first-party direct measurement. This unique, multidimensional approach to hundreds of diverse data sources and types is a core strength and differentiator for Similarweb’s offering.
We are committed to continuously supporting and refining this data. The direct measurement data serves as a learning set for machine learning algorithms to convert a sample of data into intelligent estimations across all sites and apps using advanced, predictive models. The large, comprehensive learning set ensures representative estimations of digital behavior. This learning set is then adjusted with census data such as country population to further refine estimations.
Conclusion: Web Traffic Data Can Provide a Unique Perspective on Investments
The heightened connectivity of our world opened up new opportunities for investment, but in order to make the most of them, investors need new evaluative tools. Web traffic data is a new way to understand online changes on a near real-time basis, allowing investors to extract actionable insights on companies they own or plan to invest in.
Learn more on Alternative Data – What is Alternative Data And How Can it Benefit Your Investment Process?
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