By Ryan Gallagher
Since 2020, online business aggregators have been trending. Amazon FBA aggregators have made headlines after the online aggregation market reached USD 14 billion, according to Entrepreneur. Industry leaders speculate that growing competition amongst digital businesses will drive a greater need for aggregator firms.
As ecommerce aggregators acquire profitable companies with consistent customers, other types of aggregators are starting to want in on the action. For example, digital demand aggregators have put forth a different concept. These aggregators will acquire, operate, and grow content websites and blogs. Sites that receive massive organic search are in-demand. Interested aggregators intend to scale-up, develop, and further monetize these assets.
In 2021, TreasureHunter hit the “business roll-up” scene with their own aggregator concept. Currently, the team is purchasing content websites in many different industries from blog owners who are passionate 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.
The Climate of Online Aggregation
Everything under the sun from shopping and learning, to communication and work, all had to be done digitally. The already-growing field of ecommerce exploded, as in-person retail was completely shut down. 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 in Amazon’s marketplace. Just last year, 41% of all US ecommerce sales took place on Amazon.
A startup, known as TreasureHunter, is promoting their team which plans to differentiate themselves from ecommerce business aggregators. Their concept is similar: Instead of Amazon sellers, TreasureHunter’s crew will be acquiring content websites and blogs. The company leaders have goals to buy digital equity in areas where ecommerce is influenced.
The Digitization of Aggregation
Large corporations have been buying up smaller entities for years–this is business as usual. Yet under the world’s “new normal”, several large digital aggregators have come to the forefront in a 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.”
The leaders at TreasureHunter plan to acquire content websites that deal in certain niches–think travel content portals and cooking blogs. These websites were created and have been maintained by entrepreneurs who are also travel junkies and professional chefs.
After acquiring websites from experts with travel tips or cooking advice, TreasureHunter’s team hopes to increase the blog’s output by streamlining tasks that individual blog owners and their smaller teams might struggle to perform.
Aggregators like TreasureHunter work with larger teams of professionals who aim to 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 to the Future of Digital Asset Aggregation
As companies hope to control the massively-influential Amazon marketplace, some digital aggregators are buying online property where ecommerce is driven and influenced. With this in mind and investor funding secured, the TreasureHunter crew is working hard to onboard newly-acquired assets. The startup’s leadership is betting on their differentiated aggregator model to achieve success.
As of today, there are 32 million (and counting) active content portals with audiences in the US and Central Europe. Knowing this, businesses like TreasureHunter are predicting greater competition and a growing need for online assets with loyal audiences. Looking into the crystal ball: If aggregation is the future for digital businesses, individuals using the web will begin to see a new landscape unfold.