Is the Digital Industry the New Finance Industry? – Tech Smart, June 2015

The digital industry is the new finance industry. Now I know this is a big statement to make, especially considering the fact that most people in the digital industry (and the industry itself) is quite young. When looking at some of the key traits the finance industry from when it all started, and comparing it to what the digital industry is evolving into, my statement may not seem so “extreme.”

When the financial markets were in full swing during the 60’s, one of the ideal jobs to have at that time was to be a stockbroker. Someone who buys and sells shares. These guys were paid a fortune as they dealt with large amounts of money, and if done well, made the client a considerable amount of money.

Looking at today, most of the brightest minds coming out of universities are flocking to Digital companies like Google, Apple and Tesla. The demand for bright minds in this industry is so huge that the current grad student straight out of University gets paid more than the average household income in America.

In the same way Banks and Finance companies have become huge international conglomerates, so too have digital companies. In fact, the growth rate of digital companies has been considerably quicker, with Snapchat, for example, having been valued at R36 billion in 2013 and now only 2 years later at R180 billion. Facebook, Google, Apple and even Alibaba are all examples of the exponential growth and net worth of the digital industry.

But just like the finance industry, some of these companies have grown incredibly and then nosedived – Lehman brothers and Yahoo are examples of this. Both massive on any scale, now bankrupt or almost there.

Initially, the financial market wasn’t really that complex; buy a share, get a “share” of the profits. Today it is a bit more intricate, with bonds, shares, private equity, hedge funds, indexes and derivatives.

Some might say that the digital industry has always been complicated, but today it is even more so, and just like the finance industry which has a live trading market, so does the tech industry. The digital marketing networks and exchanges allow advertisers to buy and sell advertising space in a few milliseconds, as well as the different complexities thereof, is soon to surpass the finance industry in complexity. And the only reason why people are not shouting at each other in a frenzy to buy media space is because they found that a computer can do it much better.

And as always, the more money there is to make, the more scams there are out there to take that money away from you. In fact, it is estimated that the digital advertising market has the largest scams of all. Google has gone as far as building a top secret experts team, which almost nobody knew about three months ago, just to make sure that they protect their clients from this fraud.

The digital industry is expanding at a rapid rate and dramatically changing the game across the board. Innovation within the digital space is at an all-time high, and either you adapt to it, or you find yourself being replaced.

Ruan Oosthuizen- CEO of Flume

The original article can be found here.

Related Articles

Top 5 Tips when Writing for Digital
When it comes to writing for the digital space, what you’re saying isn’t nearly as important as how and why you say it. Now more than ever before, having a well-thought-out purpose behind everything shared online is imperative. Consumers are smart, and their brains are hardwired to swipe away all the fluff that’s trying too hard.
Why Social Media is Your Most Important Customer Service Tool
Thanks to the technology of the digital age, customers are more likely to look for a brand on social media when they have a complaint or compliment. So, what better way to serve your customers than to be on social media with a team that lets them know that you are ready to assist?
Why Your Business Can’t Afford To Not Be On Social Media
The list of reasons as to why your business needs a social presence are endless. It has become an essential part to any modern-day business. Especially in the midst of a global pandemic, where your next customer is stuck at home online, right now. With that in mind, let’s narrow it down and highlight some of the key benefits social media can add to your business.
What makes a good UX design?
User experience as a concept has been around for decades – some say that it started when Henry Ford set out to make human labour more efficient and productive. You can find traces of user experience thinking all over the world, in disciplines like urban planning, for example, from the aesthetic considerations all the way through to how you push or pull on a door.

We are using cookies to give you the best experience on our site. To find out more see our Cookie Policy. By Continuing to use our website without changing the settings, you are agreeing to our use of cookies.