having a good alexa rank is important if you are a blogger or something like that. local businesses will obviously have very low alexa ranks nationally…but its good for seeing what keywords drive the most traffic etc.
Alexa Rank is a relative measurement on how popular a web site among the Internet community. Alexa is relative because it depends on the data of Alexa Toolbar users. And also Alexa Toolbar is only for Internet Explorer which means it doesn’t count growing group of Firefox fans or any other browser users. But there are over 10 million Alexa Toolbar users who make it a recognized measurement. Alexa orders web sites according to Alexa Traffic they get. That means a site with a rank of 1000 gets more traffic than a site with rank of 1001 according to Alexa, of course.
You also have to keep in mind the alexa pulls its data from those individuals that have the alexa toolbar installed on the browser - so not a large sample size.
It can be helpful I guess (if you want independent statistics on a minority cohort of your audience) but I agree that in most cases it’s not something to spend much time or money worrying about, just use it for what it is: a very subjective number that has little value beyond personal opinion of popularity.
Alexa is good for one thing, you can type in a really popular site, Alexa will then show you how much traffic it gets and every site that LINKS to that site.