Aggregation Theory

Aggregation Theory is a concept that explains how the Internet enables businesses to collect and organize vast amounts of information and users in one place. It suggests that digital platforms can create value by aggregating audiences and content, allowing them to serve targeted ads or services more effectively. This theory highlights the shift from traditional businesses, which often rely on direct interactions and distribution, to online businesses that leverage data and scale to dominate markets. By efficiently connecting consumers with what they want, these platforms can significantly influence industries and consumer behavior.