Online business aggregators have drawn investors' and media outlets' interest since the start of 2020. Since then, well-known companies referred to as Amazon FBA aggregators have emerged as the digital aggregation market has surpassed USD 14 billion. The competition between ecommerce enterprises and other "digital businesses" is increasing, according to experts in this field, and this suggests that digital aggregation is just getting started.
The Current Climate of Business Aggregation
The pandemic era saw a surge in e-commerce. Everything under the sun had to be done digitally, including communication, job, school, and shopping. Aggregators like Berlin Brands Group and Razor Group bought e-commerce companies during this time (like Amazon sellers). These aggregators advanced their wider plan to simultaneously build a group of assets with each acquisition.
Due to the success of this business model, investors' funds continued to flow to additional aggregators, particularly those doing business on Amazon.com. Amazon accounted about 41% of all US e-commerce revenues in 2021.
Other aggregators also appeared as profitable businesses with established customer bases were acquired by ecommerce aggregators like Thrasio. The purpose of "digital demand aggregators," companies that promote a somewhat different economic model, is to buy, maintain, and expand content websites. For these businesses, a significant portion of organic search is directed toward the sites on the shopping list that look the best. Aggregators can further expand a site's brand and revenue streams by buying these kinds of sites from thought leaders and content producers.
A startup team by the name of TreasureHunter entered the "company roll-up" industry in 2021. Another aggregator proposal whose team set itself apart from Amazon FBA aggregators was this one. The team at TreasureHunter was put together to acquire digital equities in online sectors that impacted e-commerce. This team will be buying content websites in numerous categories in 2022 from independent content producers who are authorities in each industry (s).
Benjamin Schardt, Co-Founder & Co-CEO of TreasureHunter, who began his entrepreneurial experience with his own blog, said, "With TreasureHunter, we want to revolutionize the digital content segment and give small websites and blogs the exact tools, resources, and partners we could have only dreamed of back when we established our first blogs in 2013."
Business Aggregation Goes Digital
The practice of major organizations "rolling up" or purchasing smaller companies is common in business. But in a short amount of time, the "new normal" economic environment following the epidemic has given rise to a number of sizable digital business aggregators.
According to TechCrunch, digital roll-ups "are the consolidation of smaller enterprises into larger firms, generating a potentially appealing avenue for shareholder value." "Multiple arbitrage," which roll-ups frequently achieve, explains why it's not surprising that the tendency is spreading online.
The practice of major organizations "rolling up" or purchasing smaller companies is common in business. But in a short amount of time, the "new normal" economic environment following the epidemic has given rise to a number of sizable digital business aggregators.
According to TechCrunch, digital roll-ups "are the consolidation of smaller enterprises into larger firms, generating a potentially appealing avenue for shareholder value." "Multiple arbitrage," which roll-ups frequently achieve, explains why it's not surprising that the tendency is spreading online.
These kinds of websites are purchased by aggregators, who then work to make them into well-oiled, money-making machines. Aggregators improve output around activities that individual blog owners frequently struggle to execute using larger teams and funds. For this to be effective, aggregators need to lower the operational expenses of the blogs they purchase, boost advertising revenue, and keep producing valuable content that appeals to each site's specific readership.
In order to facilitate significant development, Schardt added, "We are using the strong relationships with regard to marketing, advertising, content management, and building synergies across technology our employees are employing." "This growth is not possible for the asset as a standalone asset."
What Does Aggregation Mean for the Future of the Internet?
According to Statista, online advertising expenditures in the US hit USD 12.5 billion in 2019. According to Oberlo, US e-commerce sales in 2021 were USD 960.1 billion, a rise of 18.3% from the previous year. Because of this, businesses like TreasureHunter think that securing control of internet resources that have an impact on e-commerce will continue to be lucrative.
Aggregators forecast increased competition and higher prices for digital assets with devoted audiences given the 32 million (and increasing) active content sites with audiences across the US and Europe. Additionally, these businesses rely on the continued growth of both advertising revenue and e-commerce sales. While crunching figures, the businesses acquiring online businesses are also attempting to create better websites as the internet landscape continues to change.
Aggregators will onboard recently acquired assets using investor capital in the hopes that their business model would succeed over the following five to ten years. In the same way that the Amazon FBA aggregators have amassed a sizable amount of authority inside Amazon's online marketplace, these businesses seek to control "digital property" on the internet.
