Digital products, including videos, music, games and other digital content, are the future of the advertising industry, but the new crop of digital publishers is poised to take a more prominent role in the ad marketplace.
Digital product definition experts say digital products can be more creative than print, making them easier to design, create and deliver on, as well as cheaper to produce.
They say digital creators have the ability to make their work accessible and appealing to audiences of all ages and experience levels.
The key to making the digital market a more competitive one is creating a creative pipeline, experts say.
The digital world has a number of digital content delivery systems to help publishers create digital content.
But few of them offer an easy way to produce digital content on a large scale, said Brian J. McLean, director of marketing and strategy at The Digital Content Agency.
“It takes time, patience and the right tools to produce quality digital content,” he said.
“Digital has the potential to become the new print.”
The future digital industry A digital media industry is emerging, and it is likely to be a significant part of the ad industry’s future, said Jennifer M. Miller, senior director of research and strategy for ad media at Ogilvy & Mather.
The Internet is rapidly growing in importance to digital advertising.
The number of people using the Internet has exploded, and advertisers are increasingly looking for ways to reach audiences online.
But digital content creation and delivery has long been a problem for traditional print and broadcast media, as many print publications still rely on the printing press for advertising.
That means traditional ad agencies have to produce and distribute digital content from scratch, often at a much higher cost.
“The traditional ad agency has been a huge obstacle to digital content being delivered on a scale that’s affordable,” said Miller.
“Now we’re seeing an explosion of digital and mobile ad formats, where a lot of the money that goes to print is being put toward digital content.”
McLean said the growth of the digital advertising market has been driven by three factors: digital content is becoming more readily available, it is more widely available, and there are many opportunities for digital content producers to make money from digital content they create.
The new wave of digital advertisers, who are making their money from the digital marketplace, have the means to do it.
They can work with ad agencies to create digital ads, or they can make their own ads, which often is cheaper.
Mclean said digital ad agencies are often making their own digital content that is designed for the digital platform, rather than trying to produce it.
But there are some caveats to the new wave.
“They have to be willing to put a lot more money into it, and they have to have a good product,” he noted.
In order to make digital content more appealing to advertisers, they must make it easy for consumers to view the content.
“You have to provide a compelling value proposition,” he added.
McLeod noted that some digital ad formats like ads that have the “buy” tag on them can have a higher price tag than others.
But McLean noted that many ad formats are being designed with a broader audience in mind, so a few dollars in the digital ad space can make a big difference.
Miller said the digital world is also starting to evolve.
“There’s this sense of openness that’s being fostered by the Internet,” she said.
While some traditional publishers have been able to retain their advertising clients by offering digital products at a higher cost, that is changing.
“A lot of digital companies have been really successful at making a premium digital product,” she noted.
“We’re seeing a lot less premium content coming out.”
The digital advertising industry is expected to be worth $1.7 trillion in 2017, according to The Information, and Miller said that digital content could be worth up to $20 billion in the coming year.
Miller predicts that digital advertising will be a major part of digital advertising revenue growth over the next decade, but she cautioned that the growth in digital content production will depend on a number more factors than just the cost of creating and distributing digital content to consumers.
She also pointed to the need to provide the right quality content for advertisers to buy.
“Advertisers want quality,” she explained.
“And they also want to buy quality digital advertising.”
More information from The Associated Press: http://www.usatoday.com/story/news/technology/2016/03/25/digital-product-definition-industry/7232389/