Over the last two years, online business aggregators have been trending. For example, Amazon FBA aggregators have made headlines after the digital aggregation market reached USD 14 billion, according to Entrepreneur. Industry leaders speculate that growing competition amongst digital businesses will drive more need for aggregator firms.
While ecommerce aggregators buy proven companies with dedicated customers, other sorts of aggregators have thrown their name into the ring. Digital demand aggregators claim a slightly different concept and are pushing forward to acquire, operate, and grow content websites. These blogs are in-demand because they already receive massive organic search. Interested aggregators intend to scale-up, develop, and further monetize these assets.
In 2021, TreasureHunter hit the “business roll-up” industry with this sort of aggregator model. Currently, this team is purchasing content websites in many different industries from thought leaders and content creators.
“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,” said Benjamin Schardt the Co-Founder & Co-CEO of TreasureHunter who started his entrepreneurial experience with his own blog.
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Current Climate Inside Online Aggregation
Ecommerce skyrocketed during the pandemic–it’s one of the only truths that came out of this era. Everything under the sun from shopping and learning, to communication and work, all had to be done digitally. While the COVID-19 storm spun, firms like Berlin Brands Group, Thrasio, and Razor Group began to acquire and aggregate ecommerce businesses.
The success of this business model has kept investors’ money flowing to other digital aggregators—especially those that work on Amazon’s marketplace. Just last year, 41% of all US ecommerce sales occurred via Amazon.
One startup, known as TreasureHunter, is promoting their team that plans to differentiate themselves from Amazon FBA aggregators. The concept is similar, but instead of Amazon sellers, TreasureHunter’s crew will be acquiring content website and blogs. The company leaders have goals to buy digital equity in these areas where ecommerce is influenced.
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Digitization of Aggregation
Large corporations have been buying up smaller entities for years–it’s business as usual. Yet amidst the world’s “new normal” several large digital aggregators have come to the forefront in one short timespan.
These digital roll-ups “are the aggregation of smaller companies into larger firms, creating a potentially compelling path for equity value,” according to TechCrunch. “…roll-ups often achieve much greater exit multiples, known as ‘multiple arbitrage,’ so it’s no surprise that the trend is making its way online.”
For example, the leaders at TreasureHunter plan to acquire content websites that deal in certain niches–think sports content portals and foodie blogs. These websites were created and have been maintained by entrepreneurs who are also passionate “doers” in their field.
After acquiring websites from sports superfans or expert chefs, TreasureHunter’s team hopes to increase output by streamlining tasks that individual blog owners and their smaller teams currently struggle with. Aggregators like TreasureHunter possess larger teams of professionals who can cut operating costs of these blogs, increase advertising revenue, and create more quality content (while still preserving the site’s “DNA”).
“We are leveraging the strong collaborations with respect to marketing, advertising, content management, and creating synergies between technology our teams are using to enable massive growth,” continued Schardt. “This is growth that would not be possible for the asset, stand-alone.”
Looking Forward: Digital Business Aggregation
As many companies hope to control the massively-influential Amazon-market, some digital aggregators are buying up online property where ecommerce is driven and influenced via digital content. With this in mind and investor funding secured, the TreasureHunter crew is hard at work onboarding newly-acquired assets. The startup’s leadership is betting on their differentiated aggregator model to find future success.
There are 32 million (and counting) active content portals with audiences in the US and Central Europe. So, businesses like TreasureHunter are predicting greater competition and a growing need for online assets with loyal audiences. If aggregation is indeed the future for digital businesses, individuals using the web will begin to see a new landscape unfold.