The assault on the pie chart
priceonomics.com
priceonomics.com
But that's not actually that common a use case: a lot of the time, I'd only be interested that they are all roughly a quarter of the whole, and not care beyond that (providing a ranking of small differences can actually be pretty misleading, depending on the problem you're trying to answer).
I can just as easily say, I want to know roughly what proportion of the whole a category comprises. And with widely varying category sizes, the pie chart excels, while with a bar chart I'd have to sum the bar sizes in my head, and divide that total by the category in question. That's at least as taxing as having to differentiate between small differences in pie slice sizes.
The answer isn't "always use pie charts" or "never use pie charts": it's to use what's best for a particular situation and context.
I.e. it only has value if it clearly visualizes the point trying to be made. Otherwise you might as well show it on a list or it might come up as an alert.
The challenge is not to be able to read and understand graphs but to know what to do with them. This is why most dashboards are purely made to make the product look sexy not to actually provide any valuable insights.
They are the visualization equivalent of TLDR. It captures the presenter's gist of the data but doesn't tell the whole story.
Instead I'm focusing on building tools that show data in better ways first, but let you get to other options if you really want to giving viewers you share views with a way to quickly switch back to something easier to grok. Even initially graphically purist tools like Tableau have had to go this route and you can now find nightmarish packed bubble plots and the like in there. In modern visualization there are so many worse visualizations that have crept in that arguing about the pie chart seems almost quaint to me at this point. For example check out this flying 3d globe with bar chart where the bars point directly up (at the camera) https://www.microsoft.com/en-us/powerBI/power-map.aspx - A while back someone from Microsoft demonstrated this to me and after I gave him a hard time about it being an improper way plot geographic data he retorted "The world is round you know!"
edit: formatting
To put it visually: http://i.imgur.com/vZ7uTu1.png
The pink bars are the percentage market share as your brain reads it. The green bars are the percentage market share the graph is supposed to show. (The burning sensation in your eyes is because I made a poor choice of colours.)
If you were to naively look at the thickness of the black area (shown with the pink bars), it'd look like it was constant. But look at the vertical height (green bars): whatever this proportion is, the black has started small, grown massively, then contracted.
1) In budgeting apps, to show the distribution of monthly expenses across categories.
2) In investment tutorials and reports, to show a distribution across asset classes.
In the case of budgeting, it's true that a pie doesn't capture all variables, like total expense from month to month. But if you're trying to optimize a metric, such as savings (which can be included as an expense category to visualize savings rate), it makes it intuitive to see which budget categories are throwing you off. Suddenly it's not about reducing expenses, but rather shifting them between categories of a whole. At 50%, there is a tipping point where the pie slice becomes concave. If you're trying to push yourself to a 50% savings rate, it's an interesting visual benchmark.
For portfolios, here are a few examples. These are 3d pie charts, perhaps the most-mocked visualization type of all. But they communicate the information effectively enough. Repeated pie charts emphasize to the reader the importance of asset allocation.
https://www.bogleheads.org/wiki/Lazy_portfolios
What makes pie charts effective is that they are simple and approachable. There are better graphs for showing a portfolio's size and allocation over time-- but not for initially communicating the idea of asset allocation and giving a few examples. Bogleheads is one of the best resources on passive index investing, and I think it's not an oversight how often pie charts show up on the wiki.
If anything, I would say visualizing a portfolio as a line chart can be more deceptive. This is a common technique used to sell mutual funds that have recently outperformed to naive investors. Line charts can implicitly promise a future trend which may not materialize.
Two great things about pie charts:
1. From the shape you can tell you are looking portions of a whole. For example, a pie chart of market shares shows all businesses in the category.
2. You can easily guess the proportion of the segments relative to each other. For example, in this chart http://www.liv.ac.uk/~cll/lskills/WN/pie%20chart1.gif you can tell that football and rugby make up half the total and cricket, tennis, athletics, and other make up the other half.
Pie charts are not serious graphs. They are useful for arguing points, where you (deliberately?) don't want to confuse folks with numbers.
But I take the point -- you only notice that connection because of the way they happen to be arranged on the graph.
If I want to draw a pie chart of the top-5 terms for some field and the chart represents just those terms, then the chart represents how they compare against each other - not necessarily how those top-5 terms compare against the entire set.
I know, sounds obvious but I've seen data misinterpreted because of this. The pie chart must represent the entire set and if you're plotting a subset of the data in the chart and ignoring the rest then your visualization may not say what you think it says.
https://en.wikipedia.org/wiki/How_to_Lie_with_Statistics
Misleading charts have long been an important and valuable career skill.In pie charts, I find it much easier to estimate a percentage than estimate the angle, perhaps just based on value range alone; 100 vs. 360.
I also find estimating percentage to be harder with a bar chart since there is no reference to the entire pool of data; the encompassing circle in a pie chart.
Most dashboards are purely made because they look good. The actual purpose of a Dashboard is to give a skilled person an overview of the entire system and see if anything is out of the ordinary and if not whats wrong.
The way most dashboards are used today they are more working like glorified lists and gives nothing of value to the user.
A great example of this is actually the Napoleon army graphic that's famous for being in Tufte's first book. It's a great visualization of what happened as Napoleon's army went off to Russia and returned. But what it's showing isn't really immediately obvious (and probably wouldn't be even it if were redesigned in modern graphical style).