How the SimilarWeb API helps investors identify worthy opportunities

Here at SimilarWeb, we’re often amazed and impressed by the ingenuity of our user community. One such case can be found in a New York-based investment house that we recently helped to set up a sophisticated intelligence processing system, powered by the SimilarWeb API. Using the dashboard that we developed with the firm’s IT team, their investment researchers can easily and quickly see how the websites of prospective investments are performing over time and can reconcile that data with information about share prices, revenues and more.

The ability to access traffic data relating to any site on the web is extremely useful, but to be able to pull just the stats one really needs and package it alongside information from other sources, all using fully automated tools – that’s some major firepower.

 

How the investment intelligence dashboard works

The investment firm’s proprietary dashboard provides analysts with data from a number of sources. The system generates a queue of investment opportunities based on recommendations published by trusted third-party sources, which are then supplemented by specific lesser-known opportunities entered manually by researchers. Each opportunity record then gets fleshed out with real time trading data courtesy of an API from eSignal, as well as the investment house’s internal database, which includes metrics on their own agents’ recent and lifetime purchases of shares.

This is where the web traffic metrics come into play, as the dashboard pulls data from the family of SimilarWeb APIs regarding site visitor growth, audience topic affinity insights, site stickiness factors and more. With all of these fields populated, the dashboard then uses a complex algorithm to sort the records and identify the opportunities most worthy of deeper consideration and promotion to clients.

It’s a sophisticated system that enables the company’s employees to do their jobs better and faster.

 

Which APIs deliver the goods

A few of SimilarWeb’s APIs are especially pivotal to the success of this solution. The Traffic and Engagement APIs reveal whether a website is catering to visitors who are actually interested in its content. The investment house charts these statistics going back as far as a year, in order to advise their agents and clients as to whether a company is growing sustainably and is therefore a good long-term investment, or if a recent spike may indicate a solid short-term opportunity.

A website with traffic that’s declining dramatically and consistently is a major red flag, since this type of trend indicates that the company has stopped emphasizing work on its website – or that the product it sells or service it provides is no longer of interest to consumers.

In order to compare two similar companies to see which one is more successful, the investment house utilizes the Rank and Reach API, which gives each website a global score according to category, traffic and stickiness. This API can also compare site traffic by country, so if the analyst is only interested in the US market, that data is readily available.

 

Changing the game

The intelligence gathered and sorted in this dashboard is extremely valuable, but when it comes to investments in companies primarily doing business online, the intelligence becomes indispensable. In order to attract investors, many businesses are known to embellish their growth metrics, so having the ability to quickly and easily reconcile those claims with the findings of SimilarWeb’s crawler allows researchers to find red flags that point to “do not buy” and “sell now” situations.

The SimilarWeb API allows the investment house to process thousands of records for clients, in order to back its investment and pricing strategy with actual data based on web behavior. The analysts can then prioritize the most interesting opportunities and stand above the crowds, using proprietary tools to generate highly actionable data.

So when clients ask about the prospects of a particular company, analysts can provide accurate and detailed insights at a glance. Intelligence like this is a game-changing differentiator in a highly competitive marketplace.

About the Author -

Noam Schwartz - Entrepreneur, Hacker, Analyst. Obsessed with making the world better using data.

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