What Is Digital Signage? The Complete Guide

  • By Danielle Dixon
  • May 2, 2024
  • Customer Engagement

Businesses are always looking for new strategies to engage their audiences, especially now that customer attention is at a premium. Customers today are inundated with marketing messages, and when they do visit businesses, they do less shopping around.

How can you connect and engage today’s shoppers? Digital signage is becoming a key player in meeting this demand.

For business owners looking to enhance their visual communication, improve customer experience, and drive sales, understanding the ins and outs of digital signage can be a game-changer.

So, what is digital signage exactly? And how can business owners use it to market and connect with their audiences?

This guide is for business owners looking to understand digital signage for their commercial spaces. It provides the necessary insights to make decisions that result in real outcomes.

What Is Digital Signage?

Let’s start with the basics: the definition of digital signage.

Digital signage is an advanced screen technology for showing digital content. Unlike traditional static billboards, it supports video, audio, and interactive features, making it more engaging for its audience. With consumers wanting more interactive and personalized experiences, digital signage offers businesses a creative way to share their messages.

Types of Digital Signage

Now that you know what digital signage is, let’s explore the different types such as cloud vs on-premise digital signage. Digital signage appears in many forms, each having its own features and being suitable for various uses.

Digital Posters

Digital posters are screens that display content one piece at a time. They’re getting more popular, especially in stores for ads and in offices and public places for signs you can interact with.

Unlike old-school posters, you can change what’s on a digital poster from anywhere, making it super easy to switch up the message. This flexibility makes them a great choice for today’s communication needs.

Free-Standing Digital Advertisement Displays

These digital displays are big screens placed on a pole or stand to grab the attention of people walking by. They are really noticeable because of how big they are and where they are placed, like in shopping malls, public squares, and busy streets.

They work great for showing brand messages, ads, and important information to lots of people, making the most of their visibility to have a big impact.

Outdoor Digital Signage

Outdoor signs are built to resist various weather conditions and environmental factors, ensuring visibility in bright sunlight and from a distance. They are crucial for outdoor advertising, offering businesses a durable method to promote their products and services.

Additionally, they are vital for presenting public information, directions, etc., helping both locals and visitors find their way around public spaces. Their durability and versatility make them ideal for a range of uses, such as business promotion and sharing community messages.

Indoor Digital Signage

Indoor digital signage, usually placed inside buildings, is key for helping visitors navigate, advertising products or services, and sharing vital messages and updates within organizations. This flexible technology improves the visitor experience and is also great for marketing and communicating internally.

Interactive Digital Signage

Interactive retail displays, using touchscreens or sensors, provide a dynamic method for user engagement. Brands are using these technologies more and more to build immersive experiences that attract audiences, present information interactively, and collect important customer insights.

By using these displays, companies can make customer interactions more engaging and informative, helping to strengthen their connection with their target audience.

Why Is Digital Signage Important?

Understanding the importance of digital signage helps explain its growing popularity across various industries.

Captivating Attention & Engagement

Digital signage has a major advantage: it grabs and keeps attention very well. We’re naturally attracted to movement and change, which digital signage is great at showing. This makes digitally displayed content, like ads and information, more captivating and interesting than static signs.

With vivid colors and moving images, digital displays catch the eye in a way that static signs just don’t, making them an essential tool for marketers.

Flexibility & Timeliness

Traditional signs like billboards and posters are tough to update, needing physical effort, materials, and time, making them slow for changing messages. Digital signage provides a modern solution, allowing instant updates. This saves time and resources, offering flexibility.

Whether updating marketing messages to align with consumer trends or changing operational information quickly, digital signage is efficient. It’s a smart option for businesses wanting to stay ahead.


Digital signage is a cost-effective alternative to traditional signage over time. Although digital signs might cost more initially, their ability to update content easily without printing new materials saves money in the long run.

The simple process of changing and customizing messages cuts costs and boosts the relevance and engagement of the information shown. This makes digital signage a favored option for businesses aiming to improve their communication strategies.

Improved Customer Experience

Using dynamic displays to show interesting and relevant information can really improve the customer experience and boost your brand’s image.

These displays catch the eye and offer the latest, personalized content, making your brand more memorable and impactful for customers. This method not only makes customers happier but also builds stronger brand loyalty and recognition.

Environmental Sustainability

Digital signage helps businesses go green by cutting down on printed materials. It lets companies show content and updates instantly, reducing waste and paper use.

This means businesses can help protect the environment, lower their ecological footprint, and include sustainability in their everyday activities.

Digital Signage Best Practices: Captivate Your Audience and Boost Impact

Digital signage is effective, but its real power lies in content that grabs the audience’s attention.

The following discusses how to use digital signage:

Content is King

The success of digital signage depends heavily on its content, from the message’s quality to how visually appealing it is.

Creating the right digital signage content is crucial. Here’s how to use digital signage effectively:

Keep It Simple & Clear

Keep your communication clear and to the point. Don’t overload your screens with too much information or distractions that can take away from your main message. A simple layout makes it easier for your audience to grasp and interact with your content, making it more effective.

Visually Appealing

With digital signage design, make sure your content stands out and speaks clearly by using clear, high-quality images and videos. Design your content so it’s easy to read, even from far away.

Also, carefully check how all the visuals work together, making sure they match well and showcase your brand’s unique style. Doing this will not only make your content look better but also help reinforce your brand’s identity to your audience.

Storytelling & User-Generated Content (UGC)

Engage your viewers by incorporating compelling stories or user-generated content, like success stories and testimonials, into your visuals. This strategy helps build a community and strengthens your connection with your audience, making your brand appear more relatable and trustworthy.

Using this approach can increase audience engagement and loyalty, fostering a lively and interactive community around your brand.

Variety Is Key

To keep content fresh and viewers returning, a dynamic mix of promotional, entertainment, and informational content works best. Plan and rotate your content regularly.

This is common at gas stations, where while you’re pumping gas, you can be watching videos on how to cook a delicious meal while being given sleep facts.

Engagement Strategies

To get the most out of digital signage, you need a clear plan to engage your audience.

Content Rotation

Updating content regularly is key to keeping viewers interested. By often updating their material, content creators keep their presence lively and engaging, so their audience remains interested and looks forward to more.

Call to Action (CTA)

Make your digital signage more effective by adding interactive features that encourage viewers to get involved and a clear call to action. This method grabs the audience’s attention and helps them connect more with your brand, making your message stick.

Consider Location & Viewing Patterns

To effectively engage your target audience, you must understand their viewing habits and preferences. Research their preferred content, whether educational videos, entertaining shorts, or detailed guides.

Tailor your content strategy to match their interests, ensuring it resonates and keeps them coming back. This approach increases engagement and builds a loyal following.

Planning & Optimization

Make sure your digital signage works well by always planning and improving how you do it.

Set Goals & Target Your Audience

It’s important to know your goals and who you’re trying to reach. This will guide your content strategy and help you place your signs where they’ll have the most effect.

If you match your goals with what your audience likes and needs, you can make your messages more effective and appealing.

Content Calendar & Scheduling

Consistency is crucial for digital signage. By creating a content calendar, you can plan your content ahead of time. Using scheduling features makes the process smoother, guaranteeing that your digital signage shows the correct message when needed.

This approach enhances the effectiveness of digital signage and makes managing content easier, more efficient, and more impactful.

Track & Analyze Performance

To accurately measure how well your digital signage is doing, apply data analytics. Look into important metrics to understand how engaging your content is and how successful it’s been.

Use these insights to tweak your approach for better results. Continuously refining your strategy like this is crucial for getting the most out of your digital signage and boosting your return on investment.

Test & Refine

Feel free to try out different types of content to see what your audience likes best. Use A/B testing to compare strategies and identify the more effective approach.

Use what you learn from these tests to improve your content strategy, making it more engaging and effective. This careful process will help you fine-tune your content to better match your audience’s likes.

Tailored Digital Solutions for Every Sector

Digital signage can be used in different sectors for various purposes, including the following:


In the retail world, the use of digital signage significantly enhances the overall shopping experience by providing dynamic and engaging content.

This innovative technology promotes sales and influences purchasing decisions through targeted advertisements that are tailored to the interests and behaviors of shoppers.


Digital signage has a significant impact on internal communications within corporate settings. Boards displaying key performance metrics, company announcements, and event schedules promote a unified and informed work environment.

Public Spaces

Digital signage, found in public spaces, is key for sharing up-to-date information like schedules, weather, and news. These screens are a flexible and effective way to talk to the public, making sure everyone gets the latest information in places like transit stations, malls, and city squares.


Educational institutions like universities can boost campus communication and engagement with digital signage. Displays can show interactive maps for easy navigation, broadcast event announcements like theater productions, sports, or lectures, keeping the campus community informed.

Digital signs also offer directions to facilities and departments, simplifying navigation. In emergencies, they’re crucial for quickly sharing important alerts, ensuring campus safety.


Hospitals and clinics can use digital signs to share important health information, help patients find their way around more easily, and make waiting areas more efficient.

These signs can display real-time updates, educational materials, and directions, improving the patient experience by reducing confusion and managing foot traffic better. This makes healthcare spaces more inviting and practical.


Hotels and restaurants can enhance customer experience with digital signage. Offering information in multiple languages helps guests from diverse backgrounds easily access services and amenities.

Digital menus present food and drink options in an engaging way, helping customers make better choices. Digital signage also offers entertainment like news, weather, or promotional videos, improving ambiance and making stays or dining more enjoyable.

Finding the Perfect Digital Signage Solution

Choosing the right digital signage solution is key to your strategy’s success. It’s not only about the technology but also about how well it meets your specific needs.

Define Your Goals and Budget

Before diving into digital signage, know your goals and budget. What do you want from your digital signage? Boosting your brand, advertising products, or sharing information dynamically?

Your goals will guide your decisions. Also, review your budget. Your investment influences the screen size, software features like interactivity, content management, and compatibility with other digital tools.

Consider Your Audience and Content

Ensure your content matches your audience’s age, location, and viewing platform. Customizing content improves audience engagement.

Also, check that your digital signage displays your content clearly and in high quality. Clear and high-quality messages increase the effectiveness and impact of your digital signage.

Research Hardware Options

There are many display hardware choices, including LED/LCD screens with clear images and bright colors and projectors for large viewing areas, perfect for presentations or cinematic experiences.

It’s crucial to think about what your space needs and the viewing conditions, like room size and light, and how you’ll use them, to get the best visibility and performance.

Evaluate Digital Signage Software

Picking the right software is key to managing content, scheduling tasks, and handling remote control effectively. It’s crucial to choose a solution that’s easy to use and understand, yet powerful enough to deal with complex tasks reliably.

The software should also grow with your business, handling more work without losing performance or reliability. This makes sure your operations stay efficient and flexible over time.

Additional Factors

When picking a new system, think about more than just the initial setup. Consider the ongoing maintenance and support as well. Decide if you need a professional for the setup or if you can handle it yourself.

Check the warranty for what it covers and how long it lasts, and see what kind of support is available. Is there round-the-clock technical help, online support, or a specific person to contact?

These aspects are important because they greatly affect how happy you’ll be with the product.


Digital signage is changing the way businesses talk to their audiences. Its growing popularity shows it’s great at grabbing attention, sharing information, and even entertaining.

Now that you know what digital signage is, to get the most out of it, you need a clear plan focusing on creating engaging content for your audience.

By customizing your content and using your displays wisely, you can significantly enhance your customers’ experience and meet your business objectives.

In today’s fast-changing business world, staying updated with the latest trends and technologies is crucial. In today’s fast-changing business world, staying updated with the latest trends and technologies is crucial.

Digital signage is not just the future; it’s here now, and it’s important to see how it can benefit your business.

Ready to see what FTx Digital Signage can offer your business? Get in touch with us today to schedule a consultation and experience a demo!


Digital signage is a blend of hardware and software coming together to display engaging content on screens for your audience.

It usually involves LCD or LED screens of various sizes and resolutions to show the content. Media players, which can be standalone devices or integrated into the screen, decode and deliver the content to the displays.

The screens are held in place by mounting systems designed to support their weight, size, and ensure they're viewed at the right angles.

The software for digital signage lets you create, plan, and control what gets displayed on the screens. It includes tools for making content, scheduling it, creating playlists, and managing everything remotely.

It really boils down to what you’re aiming for and who you’re speaking to.

Digital signage is versatile, capable of showing images, videos, and text. This ranges from retail advertisements and deals to restaurant menus to the latest news. You can also feature live social media feeds or real-time information such as weather. For schools or businesses, it's great for displaying presentations, company news, or training content.

Digital signage displays come in all shapes and sizes, each designed for different uses.

Here are some of the most common types:

  • LCD Displays: These displays are very versatile and popular. They offer good image quality and come in many sizes and resolutions.
  • LED Displays: Perfect for outdoor use or well-lit indoor areas, they're highly bright and durable. Plus, they provide excellent image quality and wide viewing angles.
  • Video Walls: These consist of several LCD or LED displays arranged together to form a big, high-resolution image. They are commonly seen in public places and control rooms and are used for digital out-of-home (DOOH) advertising.
  • Interactive Displays: These displays allow users to interact with what's on the screen through touchscreens or sensors. They work great for directions, product information kiosks, and educational places like universities and museums.
  • Digital Kiosks: These displays stand alone and come with a computer and software for interactive use. They're ideal for helping people find their way, self-service checkouts (like sandwich orders), and getting information.
  • Digital Menu Boards: Designed for food establishments, these menus are easy to update and offer more flexibility than traditional menus.

Consider your goals to shape your content strategy. What do you aim to achieve? Increase brand awareness? Educate customers?

Understanding your audience is crucial. Knowing their demographics and interests helps in creating content that really resonates.

Creating engaging visuals and keeping messages clear is key. Mix static images, videos, and live data for variety.

Choose displays and media players within your budget and suitable for your setting, considering screen size, brightness, and durability.

Pick software that simplifies content creation, scheduling, and remote management.

Digital signage is used in many different industries for various purposes.

Some common uses include:

  • Retail sector
  • Corporate sector
  • Educational institutions
  • Food service industry
  • Public spaces

Digital signage is a useful tool for businesses of any size and industry. Its versatility allows it to show engaging content, making it perfect for different settings like shops, hotels, hospitals, and schools. Thanks to technological improvements, it’s now more affordable and accessible, appealing to businesses large and small.

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Business Experts & Contributors

A New Solution Coming To FasTrax

Danielle is a content writer at FTx POS. She specializes in writing about all-in-one, cutting-edge POS and business solutions that can help companies stand out. In addition to her passions for reading and writing, she also enjoys crafts and watching documentaries.

Danielle Dixon

Content Writer
A New Solution Coming To FasTrax

Matthew Davis is a content marketing specialist for FTx POS. With experience in marketing, brick-and-mortar retail, and ecommerce, Matthew enjoys writing about strategies and technology retailers can use to grow. Previously, he managed retail operations for a sports/entertainment facility and worked in marketing consulting.

Matthew Davis

SEO Specialist/Content Writer

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