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Web traffic as a proxy for Company Revenue

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Some companies are heavily dependent on web traffic for their revenue. I am keenly aware of this, having been involved with South Africa Travel Online for about 15 years. Of course for many companies web traffic doesn't matter much, as they don't use it as a sales channel, e.g. commodity producers.

For those companies which are dependent on web traffic, those investors with up to date estimates of web traffic have an edge. If web traffic plummets, the market may not immediately digest the news, if many players don't look at this.

For example, here's the estimated web traffic for the main website of a company listed on the JSE which is heavily dependent on web traffic for sales. Estimated web traffic has plunged, but I don't think the share price has reacted commensurately, as it hasn't yet impacted reported revenue.

Web traffic graph

I'm toying with the idea of setting up a subscription service to regularly send web traffic stats for certain companies on the JSE, without which one can't get as good a handle on revenue subsequent to the last reporting date. If there's enough interest shown I'll do it. 
If you're the first to guess the name of the above company, I'll give you a free subscription for the first month. One clue - it's a REIT! 


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