Digital scrapbooking is essentially paper scrapping with computer software. The software varies, the backgrounds you use and the embellishments you choose. As with paper scrapping, you go to stores this time online to purchase digital supplies rather than paper, stickers, etc.

Using your software (photoshop, paint shop pro, etc) we layout everything on a page and then either print it out or just keep it on your hard drive.

You actually have the best of both worlds with digital scrapbooking because you can tweak a page over and over again without damaging any elements unlike with paper scrapping. If you decide to change the photos but keep the exact same layout, it's pretty easy to do and requires little legwork. If you absolutely love a layout, you can print it out multiple times and share with your family and friends. You can also have it printed at a larger size and framed for your wall. And if you hate it, you can always start over without having wasted any materials.

While digital scrapbooking is still considered to be in it's infancy, it is the fastest growing segment of the scrapbooking hobby, which is now a multi-billion dollar industry.

There are lots of potential reasons why so many are turning to this new medium. According to Jeffrey Housenbold, chief executive of the online photo service Shutterfly, "83 percent of scrapbookers said they had not finished a scrapbook in the last 12 months."

Many have expressed that it takes up much less room, you can print multiple copies, and you can keep your materials safe from little hands.

According to many sources, the photo printing industry and software industry are started to take notice of this growing trend. Printer companies are making wide-format printers more readily available, scrapbook kiosks are making their appearances in some photo shops, and online world companies like Shutterfly, Snapfish, etc. allow users to create a book online and have it printed.

Articles:

• New York Time Article - TREND; Goodbye, Glue, Hello, Digital. The Once-Humble Hobby of Scrapbooking Has Moved On. by Damon Darlin
• Forbes - Old Craft, New Technology Boost by Danit Lair
• San Diego Union Tribune - Digital Scrapbooks now Rival Paper Version by Kathryn Balint
  
• U.S. News & World Report - Scrapbooking, Cyberstyle by Eleanor Levie

Other Sources:

• Scrapbooking - Wikipedia