Can someone define data aggregation and explain how it works? or What does it mean to define data agg

"Can someone define data aggregation and explain how it works?"

Hey folks, I keep hearing about "data aggregation" but I'm kinda lost on what it actually means. Like, can someone define data aggregation in simple terms?

From what I gather, it’s basically collecting a bunch of data from different sources and combining it into a single, summarized form. But how does that even work? Is it just dumping numbers together, or is there more to it?

Also, why’s it so important? I feel like it’s everywhere these days, but I’m not totally sure why. Would love to hear some real-world examples or dumbed-down explanations.

Thanks in advance!