Pillar pages are a blog post or landing page that superserves a topic. For instance, a pillar page about digital marketing should cover ALL THE THINGS digital marketing—but at a surface level. Each subtopic covered will then link to other site content that tackles the subtopic in detail.
By aggregating content in a cluster (the aim of a pillar page), Google can recognize that all of these articles are related to the same general topic, giving a site increased authority on the topic and improving the ranking for each individual article.
Meanwhile, pillar pages themselves become a way of funneling an audience from a general topic of interest and into subtopics that meet their specific needs (increasing time spent on site, which is a win for digital marketing).