Google Insights a powerful and low-cost data source

Internet search data can be linked with actual behaviour and where this is the case, search data such as that provided by Google Insights can be a powerful, low cost data source.

For example if we consider the number of job seekers allowance (JSA) claimants, as people become unemployed, or start to become concerned about losing their jobs they are more likely to seek information regarding such benefits via the internet. Therefore, there could be a link between the numbers of total claimants and the numbers of internet searches for “job seekers allowance”, “unemployment benefit” and other relevant terms. The chart below shows total JSA claimants plotted against Google Insights search volume data for “jobs seekers allowance” (indexed to show 100 as the maximum search volume).

Although the series is volatile and seasonally affected, we can see some clear correlations. The volume of search traffic matches the level of claimants, both peaking in mid – late 2010, and large swings in search traffic are matched by rises and falls in the numbers of claimants. The figures for January 2011 show sharp rises in both series and suggest increases in unemployment in future months.

This example therefore seems to demonstrate the principle of a link between actual events or behaviour (people becoming unemployed) and volume internet searches. Having established the principle, we can consider possible actual applications. For example it would be possible to look for a relationship between poor weather and searches for travel information; or a marketing campaign and searches mentioning the brand in question.