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Home > Blog > Data Visualizations >

Area Chart: When to Use It and When to Avoid It

By PPCexpo Content Team

An area chart is more than a simple line with a shaded background. It shows trends, growth, and patterns at a glance. Whether tracking sales, website traffic, or financial performance, this chart makes it easy to see how values change over time.

Area Chart
Source: chartexpo.com

Unlike bar charts that focus on discrete values, an area chart highlights the flow of data. It’s great for comparing multiple data series, showing cumulative trends, and identifying shifts in proportion. Businesses use it to understand past performance and predict future trends.

Misreading an area chart leads to bad decisions. A rising section might mean growth, but it could also signal seasonal demand or a short-term spike. Knowing how to interpret these visuals helps avoid costly mistakes. This guide explains how an area chart works when to use one, and what to watch out for.

Table of Contents:

  1. Introduction: Area Charts
  2. Anatomy of an Area Chart: Breaking Down the Essentials
  3. Choosing the Right Type of Area Chart
  4. Structuring Data for an Area Chart: Avoiding Chaos
  5. How to Build an Area Chart That Actually Works
  6. Best Practices for Area Charts: What the Pros Know
  7. Common Pitfalls & How to Fix Them
  8. Area Charts vs. Other Charts: Picking the Right Tool
  9. How to Read an Area Chart Like a Pro
  10. Business Applications of Area Charts: Real Impact
  11. Taking Area Charts to the Next Level
  12. The Psychology of Area Charts: Color & Shape
  13. Fixing Bad Area Charts: How to Improve Them
  14. Wrap-up

Introduction: Area Charts

Definition: What is an Area Chart

An area chart is a graph that combines line charts and bar charts. Its main purpose is to show how one or more groups’ values grow or decline over time. It’s like a line chart. However, the space below the line is filled with color or texture. This filled area makes trends and changes more visible, giving a quicker insight into the volume beneath the trend line.

Why Area Charts? How They Visually Elevate Trends and Patterns

Area charts shine in displaying the magnitude of trends. Unlike line charts that focus on points, area charts offer a broader view of the data. By shading the area under the lines, they not only highlight the trends but also help to compare different sets of data visually.

This makes it easier to see which factors are increasing or decreasing. It’s a visual feast that simplifies complex data into understandable chunks.

When to Use an Area Chart: The Sweet Spot Between Line and Bar Charts

Choosing an area chart is ideal when you need to track changes over time. This type of chart is perfect when you want to compare two or more quantities. It shows the volume beneath the line, making it easy to see which periods had the most impact.

Think of it as a mix between the pinpoint accuracy of line charts and the volume indicated by bar charts. It’s best used when you need to highlight the rise and fall of values over time, making it perfect for financial analyses, inventory levels, or even website visitors’ trends.

What This Guide Covers: From Basics to Pro-Level Insights

This guide will take you from the basics of understanding area charts to applying pro-level insights in your data analysis. You’ll learn not only how to create these charts but also when and why to choose them over other types.

We’ll cover different styles of area charts, how to interpret them, and tips on making your data presentation as clear and impactful as possible. Whether you’re a beginner or looking to polish your skills, this guide aims to equip you with all you need to use area charts effectively.

Anatomy of an Area Chart: Breaking Down the Essentials

The Core Structure: X-Axis, Y-Axis, and Data Points

An area chart lights up data visually, mapping out values over time. The X-axis represents time intervals, while the Y-axis indicates the measured values. Data points mark specific values at given times. Connecting these points forms a line.

Below this line, the chart is filled, creating a visual “area”. This area helps viewers see volume changes over time, not just the highs and lows.

Shading & Transparency: How Visual Elements Impact Readability

Shading in an area chart isn’t just for show; it makes the chart easier to read. By adjusting the transparency, you can view overlapping areas without losing track of either. This is key when comparing multiple datasets.

Lighter transparency helps in distinguishing the overlap, while deeper shades emphasize the volume of data beneath the line. Such visual tweaks aid in quick analysis.

Legends, Labels & Gridlines: Small Tweaks That Improve Clarity

Legends serve as a guide, explaining which colors represent which datasets. Without them, viewers might see just colors and shapes. Labels are equally vital. They give meaning to the axes, guiding viewers through the data landscape.

Gridlines play a subtle, yet powerful role. They provide a backdrop that helps in estimating numerical values at a glance. Together, these elements turn a simple chart into a clear, informative tool.

Choosing the Right Type of Area Chart

Simple Area Chart vs. Multi-Series Area Chart: The Case for Each

A simple area chart is your go-to for tracking a single data set over time. Think of it as your straightforward, no-frills friend who always tells it straight. It’s perfect when you need a clear view of one trend without any distractions.

Switch gears to a Multi-Series Area Chart, and you’re juggling several related data sets at once. Imagine a team working together, where each member’s performance is vital. This chart layers different data sets, allowing you to compare and contrast them effectively.

It’s ideal for spotting how different segments perform relative to each other over the same period.

Stacked Area Chart vs. 100% Stacked Area Chart: Composition vs. Proportions

Stacked area charts are like a team photo, showing everyone together, but still letting you see individual contributions. Each segment’s size shows its part in the whole over time, making it a breeze to track total growth while keeping an eye on individual categories.

On the flip side, a 100% Stacked Area Chart is all about the bigger picture. It adjusts each segment to fill the chart, focusing solely on the proportion each category contributes to the whole. This type is fantastic for understanding relative differences within the whole, without getting sidetracked by actual size differences.

Stacked Area Chart Example

Quarter Laptops Smartphones Tablets Headphones Smartwatches
Q1 5,000 8,000 6,000 4,000 9,000
Q2 7,000 6,000 9,000 5,000 7,000
Q3 6,000 5,000 6,900 7,000 5,000
Q4 12,000 10,000 8,000 6,500 9,500
Area Chart

100% Stacked Area Chart

Quarter Laptops Smartphones Tablets Headphones Smartwatches
Q1 15.63 25.00 18.75 12.50 28.13
Q2 20.59 17.65 26.47 14.71 20.59
Q3 20.07 16.72 23.08 23.41 16.72
Q4 26.09 21.74 17.39 14.13 20.65
Area Chart

Overlapping Area Chart vs. Step Area Chart: When Accuracy or Emphasis Matters

Overlapping Area Charts are your go-to when you need to compare several data sets directly. They lay data sets over one another with some transparency, letting you spot where they overlap and differ. It’s like having x-ray vision for your data!

Step Area Charts, however, emphasize changes at specific points, making them sharp and clear. Each step on the chart pinpoints a change, making it super easy to spot when and how data shifts. This chart is perfect when precise changes are more important than smooth trends.

Streamgraph: The Outlier That Excels in Flow-Based Data

Think of a Streamgraph as the free spirit of area charts. With its wavy, flowing style, it’s not just pretty but also incredibly functional for displaying how data evolves over time. This chart type is unique because it centers the data, allowing you to see patterns and trends that would be hard to spot in other charts.

It’s perfect for data that has a natural ebb and flow, helping you visualize the rhythm in the numbers.

Each type of area chart has its strengths, and picking the right one can truly transform how you view your data. Whether you need the simplicity of a single series or the depth of a multi-layered story, there’s an area chart that fits the bill.

Structuring Data for an Area Chart: Avoiding Chaos

Getting Your Data Format Right: Columns, Rows & Categories

Setting up your data correctly is crucial for an area chart. Arrange data in columns and rows logically. Each row should represent a unique data point. Each column should represent a different variable. Categories must be clear and mutually exclusive. This clarity helps in differentiating between data segments in your chart.

How Missing Data Can Distort Your Area Graph

Missing data can greatly distort an area graph. If data points are missing, the graph might misrepresent trends. It’s like missing pieces in a puzzle. The overall picture isn’t clear. Always check for gaps in your data before plotting. Fill in these gaps appropriately, or note them in your chart to avoid misleading viewers.

Stacked Area Graphs: Why Data Order Affects Perception

In stacked area graphs, the order of data is crucial. The base layer should be the largest category, as it supports the rest. Each subsequent layer should be smaller. This order affects how viewers perceive the information. If the largest category is not at the base, it may appear less significant than it is. Check and reorder data to match this logic before finalizing your chart.

How to Build an Area Chart That Actually Works

Step-by-Step: From Raw Data to a Perfectly Designed Area Plot

First, gather and clean your data. Removing duplicates and correcting errors is vital. Then, organize your data chronologically or by category, depending on your story.

Use a chart tool to input your data, selecting ‘area chart’ from the options. Finally, adjust your axes and labels to ensure they’re clear and informative.

Choosing the Right Colors: Avoiding Confusion and Visual Overload

Selecting colors for your chart involves more than aesthetics. Start with a color scheme that differentiates data. Use contrasting colors for different data sets to avoid visual confusion. Remember, colors carry meanings and evoke emotions; choose hues that align with your data’s narrative.

How to Handle Multi-Dimensional Data Without Cluttering the Chart

Handling multi-dimensional data in an area chart requires strategy. Simplify by grouping related data points. This reduces clutter and enhances readability. Employ transparency or different shades to distinguish layers without overwhelming the viewer. Label each dimension clearly to aid understanding.

Area Chart in Microsoft Excel Learn to Visualize Data Effectively

  1. Open your Excel Application.
  2. Install ChartExpo Add-in for Excel from Microsoft AppSource to create interactive visualizations.
  3. Select Area Chart from the list of charts.
  4. Select your data.
  5. Click on the “Create Chart from Selection” button.
  6. Customize your chart properties to add header, axis, legends, and other required information.

Area Chart in Google Sheets Learn to Visualize Data Effectively

  1. Open your Google Sheets Application.
  2. Install ChartExpo Add-in for Google Sheets from Google Workspace Marketplace.
  3. Select Area Chart from the list of charts.
  4. Fill in the necessary fields.
  5. Click on the Create Chart button.
  6. Customize your chart properties to add header, axis, legends, and other required information.
  7. Export your chart and share it with your audience.

Best Practices for Area Charts: What the Pros Know

Always Start at Zero: Why Skipping This Rule Misleads Your Audience

Starting an area chart at zero is vital for maintaining data integrity. When the baseline isn’t zero, the visual can exaggerate minor variances, misleading viewers. For instance, a small change appears significant if the y-axis begins at 90 instead of zero.

This distortion can lead to incorrect interpretations of the data’s actual impact. Always start your y-axis at zero to ensure a truthful and helpful representation.

When to Limit the Number of Series in Overlapping Area Charts

Overlapping area charts can quickly become confusing with too many series. Each series adds another layer, and when these layers overlap, it obscures the data underneath. A best practice is to limit the number of series to three.

This restriction maintains clarity and ensures that each data set remains visible and distinct. If more series are essential, consider alternative chart types like line charts, which can handle complexity better.

Stacked Area Charts: Ordering Matters More Than You Think

In stacked area charts, the order of data series significantly impacts readability. Placing larger values at the base and smaller ones at the top of the chart helps maintain a clean, understandable layout. This arrangement prevents smaller sections from getting lost behind larger ones.

Always review your data’s hierarchy and structure your stacked area chart to highlight the most critical information effectively. This method ensures that each part of your data set contributes to a clearer understanding of the whole.

Common Pitfalls & How to Fix Them

The “Stacked Illusion”: Why Summed Values Can Be Deceptive

In the world of area charts, the “Stacked Illusion” often trips up even seasoned data analysts. This pitfall occurs when the areas in a stacked area chart are misinterpreted due to their cumulative nature.

Let’s say you’re examining a chart showing company revenue streams from various products over time. The areas, stacked one on top of another, might suggest that the total area reflects the sum of all products’ revenues.

However, this can lead viewers to overestimate the performance of products higher up in the stack.

How to Fix: The key to avoiding this illusion is clarity in presentation. First, consider using a different type of data visualization if your data set is complex. If a stacked area chart is a must, make it interactive. Allow viewers to toggle individual data series on and off.

This interaction provides a clearer picture of each category’s true performance without the distraction of cumulative data.

Overlapping Areas Gone Wrong: How Transparency Can Make It Worse

Transparency in design can be your friend, but when it comes to area charts, it’s a double-edged sword. Overlapping areas are common when multiple data sets crisscross over time, leading to a visual mess where colors blend and details blur. Adding transparency might seem like a good idea to differentiate these areas, but it often only complicates the view, making it harder to distinguish the data.

How to Fix: Instead of relying on transparency, use distinct colors and patterns for each area. Dashed or dotted lines, different textures, or even varying gradients can help. Also, simplify the chart by limiting the number of overlapping datasets, or use small multiples of area charts for each category for clearer comparison.

Bad Labeling, Poor Scaling, and Other Rookie Mistakes

Nothing derails an area chart faster than bad labeling and poor scaling. When labels on the axes are unclear or too dense, or if the scale of the chart misrepresents the data, the chart becomes almost useless. These errors can mislead viewers or make it impossible to derive accurate insights from the data.

How to Fix: Always double-check that your axes are clearly labeled and that these labels accurately reflect the data’s scale. Simplify where possible. If dealing with large numbers, use a logarithmic scale or break the data down into smaller, more manageable chunks.

Labels should be concise and placed strategically to avoid clutter, ensuring they guide the viewer rather than overwhelm.

By addressing these common pitfalls with strategic adjustments, you can transform your area charts from confusing to clear, from misleading to enlightening.

Area Charts vs. Other Charts: Picking the Right Tool

Area Chart vs. Lines: Does the Shading Add Real Value?

The main difference between an area chart and a line chart lies in the shading beneath the line. In an area chart, this shading emphasizes volume and weight, offering a visceral sense of how values stack up over time.

For datasets where cumulative quantity matters, this visual weight adds clarity. For example, in tracking revenue over several quarters, the filled area under the line helps visualize the growth in total revenue, not just the changes in rates.

Stacked Area Chart vs. Bars: Which Tells the Better Story?

Choosing between a stacked area chart and a stacked bar chart? Consider your story’s flow.

Stacked area charts are phenomenal for showing part-to-whole relationships over time, allowing viewers to see total changes and individual category shifts simultaneously. They work best when the focus is on how components contribute to the whole over a period.

Stacked bar charts, while similar, offer a more segmented snapshot per category, which can be easier for spotting individual values but less fluid for observing trends.

Streamgraph vs. Traditional Area Graph: When to Get Fancy

Streamgraphs are a twist on the traditional area graph, offering a more flowing, organic look. They are especially effective in displaying volume changes over time for multiple categories with a central baseline.

This style minimizes the issue of one category overshadowing another, a common problem in standard area graphs.

Streamgraphs work best when you want to add a visual appeal without compromising the data’s readability, perfect for engaging viewers with aesthetic and informative displays.

How to Read an Area Chart Like a Pro

Finding the Story: What the Heights and Layers Reveal

In area charts, the height of each layer at any point along the X-axis shows the value of that category at that time. Taller sections mean higher values. Layers stacked on top of each other reveal the combined total of all categories underneath.

This stacking can highlight the relative contribution of each category to the whole. For instance, a sudden increase in a layer’s height could indicate a surge in that category’s value, which might suggest seasonal trends or responses to external events.

Understanding the Space Between Stacks: How to Avoid Misinterpretation

The space between stacks in an area chart is crucial for understanding shifts in data composition. A widening gap may indicate an increasing contribution of top layers to the total, or a shrinking base layer. It’s essential to track these gaps over time to catch subtle shifts in data distribution.

Misinterpretation often occurs when viewers assume a consistent distribution of values across layers, so pay close attention to how these spaces change.

Interpreting Changes Over Time: Recognizing Patterns and Outliers

Recognizing patterns in an area chart involves looking for consistent rises, falls, or cycles in the data layers over time. These patterns can indicate underlying trends. For example, a consistent upward trend every year might suggest seasonal effects.

Outliers are data points that don’t fit the pattern and can appear as spikes or dips. Identifying these can help spot errors in data collection or genuine anomalies worth investigating further.

Business Applications of Area Charts: Real Impact

Market Trends & Financial Forecasting: The Big Picture in One Chart

Area charts are vital in displaying cumulative data over time. They show how different components contribute to the overall total. In financial forecasting, these charts provide a glance at market trends.

Investors and analysts use them to spot upward or downward trajectories in stock performance, commodity prices, or market indexes. This visual tool allows for rapid assessment and response, aiding in strategic data-driven decision-making.

Sales & Revenue Tracking: Spotting Seasonality and Growth Patterns

For businesses tracking sales and revenue, area charts serve as a useful aid. They highlight seasonal trends and growth patterns effectively. By stacking different revenue streams, companies can see which products or services contribute most to their earnings.

This helps in identifying peak selling periods and planning for inventory or promotions. Managers find these insights helpful for setting sales targets and strategies.

Web Traffic & Social Engagement: Visualizing Peaks and Drops

Area charts excel in visualizing web traffic and social media engagement over time. They show when interest peaks, perhaps due to a successful marketing campaign or viral content.

Similarly, drops in engagement are easily spotted, prompting a quick analysis of potential issues or content adjustments. This tool helps digital marketers adjust strategies in real-time, optimizing for audience engagement.

Project Management & Resource Planning: Making Data-Backed Decisions

In project management, area charts help in resource planning by showing the allocation and usage over time. This visual representation aids managers in identifying periods of resource strain or underutilization. Adjustments can be made proactively, ensuring projects stay on track and within budget. This data-driven approach is crucial for efficient project management and optimal resource allocation.

Taking Area Charts to the Next Level

Combining Area Charts with Other Charts for Layered Insights

Area charts shine in showing volume changes over time. Add line graphs and heat maps, and you get a powerhouse of insight!

Line graphs pinpoint changes and trends with precision. Heatmaps highlight data intensity and distribution, making it easy to spot patterns.

Together, they turn a simple area chart into a dynamic data storytelling. This method helps analysts see not just ‘what’ but ‘how’ and ‘why’ things change.

When to Use Streamgraphs for Flow-Based Data Analysis

Streamgraphs are a twist on the classic area chart. They’re perfect for data that flows, like web traffic or stock market volumes. What makes streamgraphs stand out? They can handle multiple data streams smoothly, showing how individual parts contribute to the whole.

This visualization is not only functional but also visually stunning, making complex data more accessible and understandable.

Using Step Area Charts for Inventory & Supply Chain Management

Step area charts are ideal for inventory and supply chain management. They show data in steps, which aligns perfectly with how inventory levels change. Each step in the chart can represent a shipment received or sent, making it clear where supplies enter or leave.

This clarity helps managers pinpoint issues like delays or surpluses at a glance, fostering more responsive and efficient supply chain operations.

The Psychology of Area Charts: Color & Shape

Warm vs. Cool Colors: How Your Brain Interprets Data Differently

Warm colors like red and orange are often seen as exciting or urgent. They make things stand out on an area chart, great for drawing your eye to key information. Cool colors, such as blue and green, tend to recede into the background. They are calming, which makes them good for less important data that you still need to include but don’t want to emphasize.

This color psychology can help you decide how to color your data. For example, use a warm color for areas of growth or important spikes in data. Use cool colors for background areas that provide context but aren’t the main focus.

Transparency & Layering: Making Complex Data Instinctively Readable

Using transparency in area charts can be a smart move. It lets you layer data without hiding what’s underneath. This means you can show several trends at once without any single one overpowering the others.

It’s like looking through a set of colored glasses; you can see different information stacked on top of each other, but each layer still stands out.

Layering is a neat trick too. By placing less important data in lighter shades or lower layers, and more critical data in darker shades or upper layers, you create a visual hierarchy. Your audience’s eyes naturally go to the most important parts first.

Gestalt Principles in Data Visualization: What Your Audience Sees First

Gestalt principles are rules your brain follows to see the whole chart before noticing the parts. One key principle is similarity. If areas in a chart are similar in color, shape, or size, your audience will think they are related.

Another principle is proximity. Areas that are close together are seen as a group. This helps in understanding the chart faster because people see patterns and relationships right away.

These principles guide viewers through your data. They help in making complex information more natural to process. By using these principles, you can control what your audience sees first and what they pay attention to the most.

Fixing Bad Area Charts: How to Improve Them

Before & After: Turning a Confusing Mess into an Insightful Chart

Picture an area chart cluttered and hard to read. Now, imagine it streamlined. How? Remove unnecessary data points. Focus on key information. Adjust the scale for better clarity. This makes trends and patterns stand out, offering insights at a glance without the mess.

Common Misuses in Business Reports (and How to Correct Them)

Business reports often misuse area charts by compressing time scales or overloading data. Stretch out the time scale for more precise trend analysis. Limit data to what’s essential. This avoids confusion and makes the chart a valuable tool for decision-making.

The Small Tweaks That Make a Big Difference in Clarity

Small tweaks can transform an area chart. Adjust the axis labels for better readability. Use larger, clearer fonts. Perhaps add a legend if it’s missing, or clarify it if it’s unclear. These minor changes can significantly enhance understanding and clarity, making your chart not just seen, but understood.

Wrap-up

Area charts are powerful tools for tracking trends and showing cumulative data. They make it easy to compare changes over time, but only when used correctly. Picking the right type—simple, stacked, overlapping, or step—can make all the difference in clarity and insight.

Keep the x-axis and y-axis clear, use colors wisely, and avoid unnecessary clutter. A well-designed chart highlights trends, while a messy one distorts them. Always question the scale and stacking order to prevent misleading conclusions.

When presenting area charts, focus on the key takeaway. Don’t overload your audience with excessive details—point out the biggest trend and let the data tell its story.

A great area chart isn’t about decoration. It’s about making data clearer, not more complicated.

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