Alternative data
Information from sources outside traditional filings, such as web traffic, app usage, job postings or card spending, used to infer business performance.
What it means
Alternative data gives an early read on companies that publish little. Investors and strategy teams use web traffic, app downloads, job postings, product reviews and other digital traces to judge growth or decline. Because the data arrives faster than quarterly filings, it can flag a change before it shows up in reported numbers.
Alternative data has real limits. Samples can be biased toward certain users or regions, and vendors model some figures instead of measuring them. Privacy and licensing terms also differ by source. Use it as a lead to investigate, then confirm with a second source before a decision. Ask the vendor how each series is built. Record which provider supplied each series, since coverage can change when a vendor updates its panel.
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Cite this entry
https://marketintelligenceplatform.com/glossary/alternative-data/