Are Stock Prices and Organic Traffic Correlated? I Analyzed 2,000 Public Companies to Find Out

2 days ago 6

SEO and the banal marketplace — 2 wholly antithetic worlds. Yet erstwhile you tally a correlation investigation betwixt integrated postulation and banal terms on, say, Nasdaq, you abruptly get a beardown affirmative correlation.

Here’s wherefore that happens and what it means.

  1. The combined banal prices typically roseate on with the full integrated postulation they received. Our probe showed a beardown affirmative narration betwixt the marketplace headdress weighted standardized terms and the full postulation of each Nasdaq stocks utilized successful the study.
  2. 32% of Nasdaq companies with astatine slightest 100k yearly postulation person a mean oregon beardown affirmative correlation betwixt integrated postulation and stock price.
  3. SEO whitethorn straight summation the banal worth of companies that put successful it. Positive effects whitethorn beryllium much apt successful industries that already amusement a stronger SEO-stock nexus specified arsenic user products, healthcare, finance, and existent estate.
  4. SEO is simply a large mode to instrumentality vantage of the “entity” borderline and immoderate nationalist relations efforts.
  5. Publicly traded companies don’t needfully request specialized strategies to pull integrated traffic. After analyzing astir 200 of the highest-traffic sites, astir were simply applying emblematic SEO champion practices.
  6. Researchers accidental that investors tin nett from the integrated postulation and banal marketplace correlation. They tin besides debar losses this way.

Please note: correlation does not connote causation and past show is not indicative of aboriginal results. This nonfiction is for informational purposes lone and does not represent concern advice.

I utilized Ahrefs API and Polygon’s APIs to get the banal monthly closing price, monthly marketplace cap, and monthly postulation for each period from 2021-11-01 to 2024-10-01.

Based connected monthly adjacent terms and integrated postulation I calculated the Spearman correlation for each ticker listed connected Nasdaq.

To cipher the percent of positively correlated tickers and marketplace headdress weighted data, we utilized 1 ticker per institution and lone the tickers with 36 rows of information (full 3 years). Hence, the quality betwixt the fig of tickers connected Nasdaq and the fig of tickers utilized for research. Big acknowledgment to our information idiosyncratic Xibeijia Guan for the thought and moving the analysis!

To find retired however positively correlated companies get postulation and links, I selected astir 200 sites that person astatine slightest 1 cardinal estimated visits per year.

Positive banal marketplace correlations and their causes

The investigation revealed a beardown correlation betwixt the full postulation and the worth of the Nasdaq. This was supported by some the Spearman correlation of 0.680 and the Pearson correlation of 0.727, which are some typically considered beardown correlations. The correlation was besides visually evident arsenic you tin see below.

Nasdaq's integrated  postulation   and terms  correlation. Weighted standarized terms  and sum postulation   implicit    time.

To clarify the chart, here’s a breakdown of the methodology. Weighted standardized terms is calculated successful three steps:

  1. Standardization: each ticker’s banal terms is standardized connected a standard of 0 to 1 to region terms standard variations betwixt tickers, ensuring a just examination careless of their archetypal terms levels.
  2. Weighting: the standardized prices are past weighted by their respective monthly marketplace cap.
  3. Summation: the weighted standardized prices are summed to nutrient the final value.

However, this doesn’t connote that all Nasdaq listed companies person a affirmative correlation. The wide affirmative correlation of the banal marketplace is influenced by the interaction of websites with higher traffic. When examined much closely, the ratio of antagonistic to affirmative correlations is astir adjacent — spot the chart below.

Percentage organisation  of spearman correlations

Because publically listed companies person entree to galore channels too integrated traffic, I expected to spot galore antagonistic correlations. So, to me, the astir absorbing uncovering was that 32% of companies showed a mean to beardown correlation, which is simply a important correlation easy seen successful examples similar Makemytrip.

Strong correlation of postulation   and banal  price.

It’s not solely their SEO strategies astatine enactment here. Many companies payment from existing request that originates elsewhere: PR, offline advertizing oregon word, mouth, etc.

To illustrate, here’s however involvement successful Soundhound’s banal (likely caused by Nvidia’s concern and partnership) impacted hunt volumes and integrated postulation to their tract simultaneously — determination is apt nary SEO magic there.

Search measurement   for the keyword dependable  stock.
Organic postulation   for Soundhound's site.

However, for high-traffic sites that consistently put successful SEO (e.g. Makemytrip, Airbnb, Wix) the transportation betwixt integrated postulation and banal worth becomes stronger. Companies similar that typically person a higher non-branded-to-branded postulation ratio, conscionable similar the one below.

Organic keywords by intent breakdown.

In these cases, SEO tin person some a nonstop and indirect interaction connected banal value. The nonstop interaction comes from attracting customers and expanding revenue, portion the indirect interaction is from accrued marque awareness. Over time, this heightened marque consciousness results successful much branded hunt queries and improved hunt effect rankings.

Tech, wellness care, concern and user companies whitethorn person a stronger SEO-stock link

Market sectors from positively correlated companies whitethorn amusement a greater propensity to boost marketplace valuation done SEO. Here are the sectors of the companies with the highest postulation with their percent organisation successful the dataset.

Percentage organisation  of sectors.

If you’ve been astir the SEO artifact a fewer times, this database astir apt doesn’t shock you.

Many of these sectors stock a communal thread: customers often statesman their acquisition oregon probe travel done Google. Whether it’s uncovering a owe lender, buying for user products, oregon searching for aesculapian information, high-intent searches tin straight interaction revenue.

That said, not each industries volition spot a important SEO-stock terms connection.

For businesses successful profoundly B2B niches oregon highly regulated sectors — wherever contracts are negotiated offline oregon done agelong pb cycles — integrated postulation whitethorn beryllium little predictive of marketplace movements. The aforesaid goes for companies wherever everyone already knows their marque oregon they’ve got beardown offline connections (like those making ace specialized stuff).

Entity SEO gives nationalist brands a rankings edge

Many nationalist companies look to bask what I telephone the entity SEO edge. My mentation is that publically traded companies often person a earthy caput commencement successful Google’s hunt results, acknowledgment to the extended online footprint that accompanies their “entity” presumption — mentions successful fiscal news, capitalist portals, property releases, and different authoritative sources.

This visibility amplifies their wide domain authority, causing Google to much easy subordinate them with definite topics oregon services. That’s what gives them an edge implicit less-established brands erstwhile it comes to SEO.

For instance, Kelly ranks for “temp services adjacent me” without ever utilizing that nonstop phrase, and Robinhood ranks for “buy stocks” adjacent though that operation isn’t anyplace connected the homepage.

Position history.

Flexshopper has the aforesaid advantage. They fertile for “rent to own,” adjacent though those nonstop words don’t look connected their landing pages.

Organic keyword presumption   list.

Nvidia ranks instantly and has nary problems staying successful the apical 10 with a glossary leafage connected generative AI.

Position past  chart.

It appears that Google’s knowing of entities goes beyond keyword matching; it whitethorn look astatine tract context, idiosyncratic behavior, and outer references. For instance, Google whitethorn get immoderate of its authorization signals from anchor texts successful the links.

Anchor study  showing anchors with circumstantial  text.

This brings america to the next point.

PR without SEO is simply a missed opportunity

Not utilizing nexus equity generated by PR is simply a missed accidental to make much online visibility done SEO and perchance summation brand value.

It’s similar being a personage and not endorsing immoderate brands. Or starting your own brand.

Media coverage, property releases, awards, and relationships with journalists often pb to backlinks from trusted websites. Just look astatine Soundhound’s newsroom referring domain growth. “Regular people” usually don’t rotation determination but journalists do.

Referring domains to a newsroom page.

Backlinks from “regular” PR tin assistance amended hunt rankings and bring much visitors to the company’s tract because, arsenic we know, hunt engines spot them arsenic a motion of credibility.

For instance, rather a fewer Nasdaq companies are connected the Forbes 500 list, each with a nexus backmost to the homepage.

A database  of Forbes 500.

The information unsocial that you’ve been included successful the ranking is an accidental to drawback immoderate more links.

PR portion   astir  Cintas listed successful  Fortune 500.

Offering quotes for journalists is simply a known nexus gathering maneuver and it’s adjacent much effectual erstwhile you correspond a well-known brand. Your established estimation increases the likelihood that journalists volition take your accusation implicit the countless different sources they consider.

Example of offering quotes for journalists.

In different words, SEO is simply a mode to marque online visibility enactment adjacent harder.

Public traded companies don’t request unsocial SEO tactics

I checked retired much than 200 Nasdaq sites with astatine slightest astir 1M yearly integrated visits, and it turns retired publically traded companies don’t request a wholly antithetic SEO playbook.

Lots of the aforesaid tactics that smaller businesses usage to thrust large postulation inactive get the occupation done. Let maine amusement you immoderate examples.

Blogs inactive thrust superior traffic

For example, Monday.com.com’s blog brings implicit a 4th of the full traffic.

Monday.com.com’s blog brings implicit    a 4th   of the full  traffic.

And here’s Cyberark with 24k monthly visits from a azygous blog post.

Cyberark with 24k monthly visits from a azygous  blog post.

In general, Nasdaq companies instrumentality to topics straight related to their halfway offerings, utilizing their domain authorization to outrank smaller competitors easily.

And so, Freshpet blogs astir however the champion spots to favored a canine oregon cat; 2.3K estimated monthly visits.

2.3K estimated monthly visits to a blog station  - information  from Ahrefs.

Nvidia blogs astir caller tech, precocious mostly AI. Here’s a bully illustration of a high-traffic, high-backlink blog post.

Backlinks and integrated  postulation   to Nvidia's blog post.

Blogging besides proves to beryllium a large mode to gain authoritative backlinks. For example, Carecloud’s blog is reputable capable that Healthline cites it arsenic a source.

Backilnk study  showing a high-quality backlink.

Landing pages seizure large (and small) demand

From heavy merchandise pages to blase topic clusters, nationalist companies trade landing pages for each benignant of search.

One of the champion examples I’ve seen comes from Electronic Arts: they stock existent NFL subordinate stats to assistance beforehand Madden NFL 25. It’s a clever twist connected contented marketing, blending authentic sports information with crippled promotion.

Top pages study  showing nfl players names successful  titles.
Example of EA's NFL landing page.

But examples similar EA’s are fewer and acold between. Most of the time, companies instrumentality to tried-and-true strategies and simply execute them truly well.

For instance, I came crossed rather a fewer taxable clusters successful my research. One stood retired successful particular: a azygous product-focused clump that was pulling successful astir 37% of the site’s wide traffic.

Topic clusters study  for Viasat.

Another happening I saw rather often was optimized clusters showing the site’s inventory. For example, erstwhile radical look for “flights to Chicago”, they’ll apt find United’s landing leafage displaying their formation options — 29.3k estimated visits each month.

Makemytrip enactment unneurotic a postulation of search-optimized landing pages, each offering antithetic question ideas based connected however radical hunt for their trips.

This helps them screen a wide scope of queries resulting successful an estimated 2.5M visits each month.

Organci postulation   to tripideas folder connected  makemytrip.

Airbnb uses a akin approach. Their taxable clusters cater to searchers looking for circumstantial types of accommodations, specified arsenic cabins, treehouses, glamping, and more.

Airbnbs taxable   cluster.

Product landing pages with an informational twist are a communal maneuver among Nasdaq companies. They seamlessly blend merchandise selling with contented selling by introducing their offerings wrong acquisition content. The operation of this leafage says it all:

Page operation   showing however  merchandise  selling  is blended into contented  marketing.

This maneuver helped Micron fertile doubly for the same, high-volume keyword (“ddr5”).

SERP overview study  showing aggregate  rankings.

Lastly, Matterport uses its ain exertion to make engaging SEO content. They support a assemblage of celebrated places captured with their cameras, which are typically utilized to nutrient 3D existent property tours. That is rather brilliant.

Matterport's landing leafage   for the Conjuring House.

Matterport’s assemblage besides welcomes user-generated content, which helps them screen adjacent much keywords. This attack brings successful implicit 45,000 visits each month. Here are immoderate of the hunt queries they fertile for to showcase their product:

Keyword study  for Matterport's gallery.

Dictionaries, FAQs, and basal definitions = astonishing traffic

I was genuinely amazed by this. Many nationalist companies are leveraging bully ‘ol dictionaries, and FAQs to efficaciously seizure informational search intent and boost their integrated traffic.

Some of the examples I recovered and their results enactment unneurotic successful Ahrefs’ Batch Analysis.

Ahrefs' Batch investigation  study  showing postulation   to aggregate  assets  pages.

And it’s often rather a important information of these sites’ traffic. For instance, Crowdstrike generates 33% postulation done a clump astir cybersecurity basics.

Crowdstrike generates 33% postulation   done  a taxable   cluster.

Qualcomm added implicit 18% postulation worthy 68k with 1 landing page.

18% postulation   worthy  68k with 1  landing page.

Why this “boring” benignant of content? It’s however Google understands the hunt intent down these keywords. It means that astatine slightest for now, tackling a keyword similar “enterprise cloud” with a purely product-oriented has a little accidental of ranking.

SERP overview highlighting hunt  intent.

Free tools and resources propulsion successful links and leads

Offering a utile assets — adjacent if it’s conscionable a re-packaged mentation of existing information — earns brands credibility, backlinks, and engaged visitors.

For example, Better makes it casual for radical searching for a indebtedness to find them by offering tools to assistance cipher and recognize their options.
Organic postulation   to a indebtedness   calculator.

SoFi gets thousands of links and visits each period regularly publishing mean US salaries.
Graph showing referring domain show  and integrated  traffic.

And it’s not adjacent archetypal data.
Source of information  for Better's US salaries report.

Baker Hughes has published a play census of the fig of drilling rigs actively exploring for oregon processing lipid and earthy state successful the United States and Canada… since the 1970s.

Backlinks and integrated  postulation   to Baker Hughes rigcount.

Adobe has much escaped tools than immoderate institution I’ve ever seen. They carve retired high-demand features of premium products and people them connected optimized landing pages arsenic escaped tools (with constricted usage).

For instance, the inheritance remover generates an estimated 2.9M visits each period promoting their Express tool suite.

Adobe's inheritance  remover generates an estimated 2.9M visits each   month.

Converting PDF to Word and vice verse could easy beryllium 1 tool. But not if you’re creating landing pages for 2 abstracted keywords — you request 2 abstracted tools.

Adobe's escaped  PDF to Word converter.
Adobe's escaped  Word to PDF instrumentality   converter.

Here’s different awesome example: Newegg created a PC builder instrumentality that attracts radical searching for customized computers and recommends products from its ain inventory. They adjacent usage AI for it.

Newegg's PC builder.

Instacart follows this strategy, too. Their ideas directory attracts an estimated 448k visits each period and contributes 11.2% of the wide traffic. It offers things similar metric converters, calculators, and adjacent a database of antithetic types of milk.

Traffic to Instacart's ideas folder.

Indexing dynamic hunt results for the astir fashionable keywords

Indexing dynamic hunt results successful SEO refers to getting hunt engines to crawl and scale pages connected your website that are generated successful effect to idiosyncratic queries. These pages are created “on the fly” based connected the circumstantial keywords oregon filters users participate into your site’s hunt function.

A large illustration of this successful enactment is Adobe. They efficaciously fertile for time-sensitive presumption similar “happy caller twelvemonth 2024.” As the play approaches, Adobe tin capitalize connected the surge successful searches, tapping into 206,000 searches successful the US and 2.2 cardinal globally.

US and planetary  hunt  measurement   - information  via Ahrefs.
Results for a hunt  query connected  Adobe's banal  sit.e

The concealed is to person the pages listed connected your site map.

Adobe's sitemap.

Etsy employs a akin strategy. By leveraging user-generated content, they’re capable to people and fertile for millions of non-branded keywords, consistently securing apical 10 positions successful hunt results.

Report showing integrated  keywords to Etsy.

Low-volume keywords tin beryllium hidden gems

Even successful a bigger company, targeting niche, low-volume keywords tin pull highly qualified leads and lend to concern growth, proving their worth contempt their little hunt volume.

For example, the keyword “mass payouts” lone gets astir 100 visits each period successful the US, but those searches are apt from businesses that are earnestly interested. I recovered 2 Nasdaq companies competing for that low-volume keyword.

Two publically  traded companies targeting low-volume keywords.

Another example: Beacon optimizes for the agelong process to drawback request for precocious summons sales.

Organic keywords study  showing optimizing for low-volume high-ticket keywords.

Local SEO connected a nationalist scale

Several companies with a nationalist scope are tapping into section SEO tactics — Texas Roadhouse and Potbelly are large examples. But the standout present is DoorDash and its clever “near me” strategy.

We’ve elaborate however this leafage works successful the teardown video below. At that time, the “restaurants adjacent me” leafage unsocial received an estimated 9.1 cardinal visits per period and a staggering postulation worth of $41.6 million.

Investors tin nett (or debar losses) connected the marketplace utilizing SEO data

And this is not lone my opinion. Third-party studies person shown that you tin usage branded hunt measurement and the sentiment down it to put successful the banal market. On SciSpace unsocial I recovered 10 papers connected the topic.

Research papers connected  SEO information  and banal  marketplace  relation.

I besides recovered 2 papers wherever the authors really outperformed the marketplace utilizing hunt data.

This is from A Study connected the Relationship betwixt Internet Search Trends and Company’s Stock Price and Trading Volume:

(…)we suggest respective generalized linear models for forecasting the probability of affirmative oregon antagonistic directional movements, and suggest a commercialized strategy from the generated forecasts, resulting successful a 40% outperformance of a accepted buy-and-hold strategy successful our investigating period.

The different is from Forecasting banal marketplace movements utilizing Google Trend searches:

Our hunt inclination concern strategy has outperformed mean banal marketplace returns successful some KOSPI and KOSDAQ markets during the seven-year survey play (2007~2013).

I haven’t tried that strategy, but I wouldn’t beryllium excessively amazed if it worked conscionable arsenic it says connected tin. I’ve personally utilized integrated postulation information to get astir 21% ROI successful a period connected NRDS stock. I bought a tiny spot of banal conscionable for kicks, to trial retired a proposal that their worth volition bounce backmost arsenic soon arsenic their postulation starts to bounce back. Well, I privation I had bought more.

Screenshot from my telephone  showing instrumentality    connected  concern    trading connected  SEO data.

In immoderate cases, changes successful integrated traffic, particularly non-branded, mightiness precede changes successful banal value, suggesting that SEO information could perchance service arsenic a starring indicator for investors.

Example: NerdWallet. First, its postulation fell, past the stock. Hypothetically, you could unfastened Ahrefs earlier the company’s Q2 net call, spot that postulation has been declining for months, and debar being dragged done a sell-off.

Organic postulation   show  arsenic  a starring  indicator - Ahrefs data.
Organic postulation   show  arsenic  a starring  indicator - marketplace  data.

Final thoughts

There was a clip were SEO was the underdog’s game. Small businesses with tiny budgets could snag tons of escaped traffic, and the playing tract was level due to the fact that the large guys weren’t paying attraction to what seemed similar “nerdy” tricks. That’s however SEO got famous.

Then, immoderate bigger brands caught on, hopped connected the bandwagon, and realized they had a built-in vantage connected Google.

That is, until Google shook things up with its caller crackdown connected tract estimation maltreatment and its “helpful content” update. In theory, Google aims to beforehand a consciousness of parity for autarkic creators (relatively tiny sites), making some Google and SEO appealing again for smaller players, portion serving arsenic a informing and creating a sour enactment for larger brands.

But I deliberation SEO is inactive a goldmine for publically traded companies — and the bigger, the better. These large companies don’t request to reinvent the wheel. They tin usage the aforesaid SEO strategies arsenic smaller companies and inactive person a monolithic caput start. It’s benignant of ironic.

Got questions oregon comments? Drop maine a enactment connected LinkedIn.

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