The Business Climate for Digital Aggregators
E-commerce boomed during the COVID-19 epidemic. Everything from learning and shopping as well as communication and work was done in a digital way, with no human interaction. This was the time that companies that aggregated data such as Berlin Brands Group, Thrasio as well as Razor Group all led the direction. These companies were founded to acquire eCommerce companies. From then on, the kinds of aggregators have enjoyed widespread success.
The companies’ accomplishments have kept investors’ money flowing to digital aggregator businesses–especially Amazon conglomerates. In 2021 41% of U.S. eCommerce sales happened via Amazon’s exchange. Companies such as TreasureHunter intend to distinguish their products from Amazon aggregaters by buying digital properties in areas that eCommerce influences.
Website Aggregators Enter the Fold
Corporate giants have been purchasing smaller businesses for years. However, in 2022 the biggest difference is because the current environment has led to the creation of several companies that offer eCommerce within just a short period of time.
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 typically have higher exit multiples, referred to as multi-arbitrage, which is why it’s no surprise this trend is coming on the internet.”
In the case of TreasureHunter the team’s goal is to take websites that feature content into “the next level”. The websites that are content-based include, for instance, food, travel, outdoor as well as technology-related blogs. Aggregators such as TreasureHunter will purchase from or work in partnership with DIY blogs that are hunter, backpacker, cooks or technology experts. These bloggers create content dedicated to their particular passion(s).
When TreasureHunter’s group is acquired, the team will begin working on jobs that blog owners may have a difficult time implementing with their limited resources. Additionally, aggregators will succeed if the entire group is able to reduce running costs for these blogs, boost the amount of advertising revenue and provide additional educational content. In a way, aggregaters have to evaluate and preserve the blog’s unique tone and DNA after transactions. However, at the same time the teams must examine the biggest challenges of the sites they acquire, and then work on implementing effective solutions.
“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.”
Aggregators Look to the Future
There’s more to come, considering the fact that there are 32 million active content portals across the US and Central Europe alone. Companies such as TreasureHunter are betting there will be an increased need for online assets , such as blogs, content websites along with online platforms. The need for these websites will be evident long into the future, resulting in avid readers and increasing online competition. If aggregation is the way to go for these assets on the internet, Internet’s users will soon discover a whole new world before them.