They are ideal for exploring large amounts of text and creating informative visualizations for presentations.
The basic rule is simple: the more the given word appears in text, the bigger and bolder it appears in the word cloud. However, it doesn't necessarily mean it is the most important word. Cloud indicates just the frequency of its usage.
Word clouds help analyze large texts to highlight the essential parts and find the main messages. They allow comparing two different pieces of text, finding similarities between them, and convert the text-based insights into measurable, numeric metrics.