
Understanding Alexa
(December 18, 2002) - Our
article on
HROToday drove the new publication's Alexa
traffic ranking from 438,736
to 14,135 for the day. We improved the ranking on the day before as we
discussed the site with advisors and peers. The pass-around/follow-on traffic
from our email newsletters will give the firm a sustained spike that will last
four or five total days.
If you were to examine HROToday's web server
logs, you'd see thousands of visitors coming from interbiznet. You'd see
additional visitors without a referring link. They come from the email
newsletters.
Web server logs are always generated by a website
and the information is, theoretically, available to every one. They include
information about traffic sources, internet addresses of users and page
consumption among other things. The problem is that the information is so
detailed (every file transfer is documented in detail so a single page might
involve 25 transactions) that it requires an additional piece of software to
even try to read it. To further complicate things, most of our readers use a
website that is not controlled by their immediate department. Getting useful
data about traffic performance can be an organizational nightmare.
It's even more complicated.
The structure of the internet is designed to
speed communications first and be measured second. In other words, the cache of
material on your hard drive, which speeds browsing, makes a certain level of
measurement impossible. Further mucking things up is the fact that similar
caches are usually organized at the company and ISP levels. The one thing you
know for certain about internet traffic measurement is that it is severely
undercounted.
But, as we've said before, all measurement
systems are inherently inaccurate to some degree. Precision in measurement is a
function of investment. Even the most costly scientific mesurement tools are
calibrated to be accurate within a tolerance (plus or minus x%). The fact that
measurement is always somewhat imprecise is not a good reason to avoid
measurement. Consistemcy in the use of a measurement device is what you are
looking for.
We really like Alexa
as a baseline measurement tool because it is affordable, available and open. (If
you haven't yet, please download the Alexa
toolbar. It adds phenomenal insight to your browsing experience.) Alexa,
rather than measuring actual traffic, delivers a report of traffic rank.
The traffic rank is based on three months of
aggregated historical traffic data from millions of Alexa Toolbar users and is
a combined measure of page views and users (reach.) As a first step, Alexa
assigns a page views rank and reach
rank to all sites on the web. Then Alexa calculates the geometric mean of
these two rankings. Finally, based on the geometric mean, a traffic rank is
generated. The six month trend is determined by comparing a site's current
traffic rank with its rank from three months ago.
The Alexa Rank is relative to all of the millions
of sites on the web. We find that this is a useful reminder of the fact that all
websites are competitors for 'mind share'. It's really worth taking the time to
read and understand the intricacies
of Alexa's approach.
Alexa measures traffic to a particular web host,
usually a domain (like interbiznet.com).
Traffic is computed for sites, which are
typically defined at the domain level. For example, the web hosts www.msn.com,
carpoint.msn.com and slate.msn.com are all treated as part of the same site,
because they all reside on the same domain, msn.com. An exception is personal
home pages, which are treated separately if they can be automatically
identified as such from the URLs in question. Also, sites which are found to
be serving the "same" content are generally counted together as the
same site.
This means that it is not possible to use Alexa
to understand the details of traffic to the employment section of a newspaper or
a company website. It's also a good reason for establishing a separate domain
name for your employment operations. It was part of the impetus for
CareerJournal.com's name change (It used to be careers.wsj.com and was not separately
measurable).
Those caveats aside, Alex makes it possible for
buyers to gain comparative understandings of the health and viability of a range
of web businesses. As we said yesterday, Traffic is everything. Downloading
the Alexa toolbar is an important start in the process of building a
constant awareness of the issue.
If you already utilize a software tool for
understanding your traffic, Alexa is still very important. While traffic
measurement tells you about the performance of your site, Alexa brings context
and tells you about the competition.
- John
Sumser