Aggregation Theory

Google does not make the content you search for. It just controls whether you find it. Ben Thompson coined Aggregation Theory in 2015 to explain why the internet rewired competition. The old world rewarded whoever controlled distribution: TV networks, Walmart shelf space, newspaper ad slots. Then the internet made distribution nearly free, and the scarce asset became the users themselves. Google aggregated everyone searching and commoditized the content producers who needed to reach them. Amazon aggregated shoppers and squeezed third-party sellers. Uber aggregated riders and reduced drivers to near-commodities.

For founders and operators, the sobering part is what this means if you are building inside someone else's aggregation. If 40% of your traffic comes from Google or 40% of your revenue runs through Amazon, you are a supplier on a platform that can change its terms, its algorithm, or its fees, and your only recourse is to leave, which you cannot, because they hold the demand. There are specific conditions under which an aggregator's power breaks down, and one thing you must own first to build one yourself. What those are is what the app holds back.