Alternative Data for All: A Game Changer for Industries
This data includes social media, satellite imagery, credit card transactions, web scraping, and many other sources. This article explores how alternative data is changing the game for all industries and why it is important.
What is Alternative Data?
Alternative data refers to the vast amount of information that is generated every day, outside the traditional data sources. This includes data from social media, web scraping, satellite imagery, credit card transactions, and much more. The data is often unstructured and requires specialized tools to collect, clean, and analyze it.
Alternative Data Providers
Alternative data providers are companies that collect and process alternative data, providing insights to clients. Here are two potential alternative data providers:
7Park
7Park is a data intelligence company that provides transformation services to tag, organize, normalize, and model raw, unstructured data. This data is used to create Leading Performance Indicators (LPIs) that help clients make informed business decisions. The company specializes in media and entertainment, financial services, and e-commerce.
QuestMobile
QuestMobile is a Chinese app data aggregator with more than 700 million mobile devices. The company collects and analyzes data from various mobile apps, providing insights to clients in various industries. QuestMobile’s clients include technology companies, advertisers, and publishers.
Why is Alternative Data Important?
Alternative data is important because it provides insights that traditional data sources cannot. The use of alternative data can help companies make informed decisions that lead to better business outcomes. Here are some of the reasons why alternative data is important:
Better Understanding of Consumer Behavior
Alternative data can provide a better understanding of consumer behavior. For example, social media data can provide insights into consumer sentiment, which can help companies understand how customers feel about their products or services. This can help companies make changes to improve customer satisfaction.
Improved Investment Decisions
Alternative data can help investors make better investment decisions. For example, satellite imagery can be used to track the number of cars in a retailer’s parking lot, providing an indication of how busy the store is. This information can help investors make better decisions about whether to invest in that retailer.
Early Warning Signs
Alternative data can provide early warning signs of potential problems. For example, credit card transaction data can provide insights into consumer spending habits. If there is a sudden drop in spending, it could be an early warning sign of an economic downturn.
Conclusion
Alternative data is transforming industries, providing insights that traditional data sources cannot. Companies that adopt alternative data are gaining a competitive advantage, making informed decisions that lead to better business outcomes. As the use of alternative data continues to grow, it will become an essential tool for all industries.