It means the former, but Alexa is not something you should ever use for any form of analysis or analytics.

This depends on what you're currently doing. There's the old school tried and true methods of cold calling, direct mail, and networking. There's also digital marketing, where you can leverage your skillset in SEO to attract local traffic. Also, there is paid search and social marketing.

The best method with the highest close rate would be leveraging your existing network. Let everyone know you do web design, development, and SEO and that you're seeking clients.