Digital Signage can be defined as any form of business communication where a dynamic messaging device is used to take the place of, or supplement, other forms of messaging.

Until very recently, this simply wasn’t viable or cost-effective. Screens were too expensive, too big and wore out too quickly. The return just wasn’t strong enough to make the effort worthwhile. But the LCD/plasma revolution changed, and is changing, all of that. Screens now are so affordable they can rival the printing costs of static posters over the course of time; they are thin and can hang on a wall (no more CRT units suspended from frightening-looking ceiling mounts) they can communicate with computer networks and fetch new content, eliminating the “sneakernet” days of employees trotting from screen to screen with armloads of VCR tapes. Some of the ways digital signage is used today include:

• Retail, communicating with customers about in-store specials, directing customers to other parts of the store, managing traffic and hotspots, and conveying brand messages
• Banks, displaying interest rates and product information, as well as lifestyle messages and branding
• Airports and bus stations, keeping travelers updated on arrival and departure times while providing an advertising vehicle for shops and restaurants

Virtually any place that has printed signage can be easily transformed into an easy to manage advertising solution for every business and commercial application despite all the progress that has been made digital signage is still a very complex proposition for the company installing it.

Most markets can be classified (but not limited too) four different categories:

1. Sales uplift: These screen networks take specific aim at increasing sales using digital messaging. Examples include “sale on aisle four”- type messages, countdown discounts (i.e., sales that will expire in a certain number of minutes), cross-sell messages located in strategic parts of the store and direct calls to action. While this type of display network is of primary interest to retailers, it is used in other verticals such as banking and foodservice.

2. Brand messaging: These networks concern themselves with extending the business brand and enhancing the customer’s opinion and experience of that brand.
Examples include the in-store network at Target, for instance, which continually beams lifestyle messages (animations of happy people using and buying Target products). In the case of large retailers like Target, those messages usually are planned to work in tandem with other advertising, chiefly television.

Networking/Connecting

Unless the player server is located at the display, there is usually a network connecting the digital signage displays. The video (and possibly audio) is distributed to the displays through a series of wired network connections, or wireless connectivity by using wireless adapters. When distributing through anything other than a video/audio cable, the signal will need to be converted with transmitter and receiver. To manage a network, a management server is usually required. This can be located anywhere, so long as it is connected to the digital signage network. New content will be managed and organized here, while the actual content itself is stored and played on the player servers.

Digital signage networks can either be closed or open to the Web, which will affect how the content on the screens is updated. For closed networks (without Internet access), updates need to be done locally through USB sticks, DVD drives or other 'on-site' updates. Open networks (with Internet access) can be updated remotely and stream data from other Internet sources (such as RSS feeds). The availability and type of Internet access (wireless, broadband, etc.) depends on the location and client.

In conclusion, digital signage can be a very effective way to both modernize and save cost all at the same time using the latest in marketing technology.