What are Audience Aggregation Businesses?
Audience aggregation needs you to gain the attention of an audience with similar characteristics and present the audience to a third party.
Aggregation businesses work since you provide third-party engagement and provide the audience with something worth their valued time. The process works because the audience will give money to the aggregation business, and the aggregation businesses will provide payment to their partners.
In exchange for this money, the partners will offer their data, and the aggregation business will filter this data to make it easy for the audience to navigate. Then, the aggregation business will filter through prices, features, and ratings, and the audience will save time and money through the aggregation business.
To simplify, we will give two examples of aggregation businesses and how they operate.
Cargurus allows you to buy and sell cars from many dealerships all on one website. These partnerships share information about vehicles with Cargurus. Then allowing the website to have an extensive database of vehicles to offer.
They gain data on the audience’s characteristics through the searches they are looking for. This way, the partner gets exposure and revenue, the aggregation business gets data, and the audience saves time. Sounds like a good deal to us!
Amazon is an e-commerce company that sells products from many companies and independent sellers. They work with these companies to provide products to their customers.
The benefit of using Amazon is it is an easy-to-use search engine. Which benefits these customer since it allows them to search for products from many companies without having to do it on their own.
These companies would get more exposure from Amazon than if they were to only sell on their independent website. Which is why it is so favorable for these companies to sell through Amazon.