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Digital signage is a form of electronic display that shows television programming, menus, information, advertising and other messages. Digital signs (frequently utilizing technologies such as LCD, LED, plasma displays, or projected images to display content) can be found in both public and private environments, including retail stores, hotels, restaurants, and corporate buildings, amongst other locations.
Digital signage displays are most commonly controlled by personal computers or servers, through the use of either proprietary software or free software; this approach often allows the operator to avoid large capital outlays for the controller equipment.
Advertising using digital signage is a form of out-of-home advertising in which video content, advertisements, and/or messages may be displayed on digital signs with a common goal of delivering targeted messages, to specific locations and/or consumers, at specific times. This is often called "digital out of home" or abbreviated as DOOH.
Since digital signage content may be both frequently and easily updated, saving the printing and/or construction costs associated with static signage, and also because of the interactive abilities available through the accompanying employment of such real-world interfaces as embedded touch screens, movement detection and image capture devices, it has won wide acceptance in the marketplace.
While the term "digital signage" has taken hold throughout most of the world, some companies and organizations prefer to use the terms "narrowcasting", "screen media", "place-based media", "digital merchandising", "digital media networks", "digital out-of-home" or "captive audience networks".
China currently leads the world in the number of digital signage displays deployed and number of NASDAQ IPOs, with the country's biggest digital signage firm, Focus Media Holding, alone operating more than 120,000 screens. Total revenue from the digital signage equipment market in the United States – including hardware, software, installation, and maintenance—is expected to grow by about 33% in 2009. Another source for information on digital signage displays and impressions (the number of times a viewer reads/views digital signage), is a report provided by Nielsen, the "4th Screen Network Audience Report". In it Nielsen identifies that digital screens in the "fourth screen" category in the US generated over 237 million monthly exposures to persons 18+years or older,. The report identifies Screenvision, NCM, Capitvate, GSTV and IndoorDirect as among the companies that are leaders in the fourth screen category. One of the leading digital signage companies in movie theaters is Screenvision, with over 14,400 screens in the US; another leader in the "fourth screen" marketplace is GSTV (Gas Station TV), which reportedly generates over 32 million digital signage impressions every month. Nielsen estimates these 237 million+ exposures translate into more than half (54%) of the adult population being exposed to a place-based video ad during the period measured.
Digital signage is used for many different purposes and there is no definitive list. However, below are some of the most common applications of digital signage:
"Content", in the context of digital signage, is the name used to describe anything designed and displayed on screens. Content is wide and varied, and indeed may be of any variety, including text, images, animations, video, audio, and interactivity. It has frequently been argued that digital signage must rely on useful content if it is to work effectively.
While the technology is well-established, it is often the content that fails, perhaps because marketers have not yet widely adapted their thinking to produce appropriate and engaging content.
Content design (much like the design for static signage) is typically done through a specialist agency or, alternatively, by an "in-house" individual, team, or department. While there are a great number of different software solutions available, the most popular are proprietary to digital signage. The use of other systems to run a digital signage network often does not provide the necessary flexibility and management, as the proprietary software can create conflicts with open-source software.
In many digital signage applications, content must be regularly updated to ensure that the correct messages are being displayed. This can either be done manually as and when needed, through a scheduling system, using a data feed from a content provider (e.g. Canadian Press, Data Call Technologies, Thomson Reuters, AHN, Screenfeed), or an in-house data source.
Digital signage relies on a variety of hardware to deliver the content. The components of a typical digital signage installation include one or more display screens, one or more media players, and a content management server. Sometimes two or more of these components are present in a single device but typically there is a display screen, a media player, and a content management server that is connected to the media player over a network. One content management server may support multiple media players and one media player may support multiple screens. Stand-alone digital signage devices combine all three functions in one device and no network connection is needed.
LED matrix displays often use modular display components, to allow for varying sizes and shapes of displays, and to make assembly and construction easier. A modular display consists of two parts:
For example, a variable-size display may use modules 16 LEDs wide and 16 LEDs tall. To construct a display 64 pixels wide and 32 pixels tall, the display is built using a construct four modules wide and two modules tall. To correctly align the individual modules, either a support frame is used or the modules are joined together along the edges.
Matrix modules may be joined to the controller using individual data connectors, thereby limiting display area expansion to the total number of data connectors available on the controller, or the modules may communicate with the controller using a shared data bus, and the position of the matrix module to display its portion of the overall image is assigned via a data bus ID number or matrix position code.
Re-use of position/bus-ID codes allows for more than one matrix module to display the same information. In this manner a double-sided or quad-sided display can be constructed using a single matrix display controller, and reusing all module position/bus-ID codes on each face of the display.
In either case, unusual non-rectangular display shapes can be sometimes also be constructed by using the tiles in a free-form construction, skipping module locations in the matrix. Very large displays can be built to span across physical gaps in space where module mounting is otherwise impossible, but the disjointed modules still form a coherent image coordinated with other modules in the matrix.
Standard LCD or plasma video displays may also be combined in this manner using a special VGA matrix controller, but typically there is unusable display area around the perimeter of a standard LCD or plasma panel which cannot be hidden, so combined LCD panels tend to have the appearance of an image broken into tiles.
Digital signage displays may be LCD or plasma screens, LED boards, projection screens or other emerging display types like interactive surfaces or Organic LED screens (OLEDs). New technologies for digital signage are currently being developed, such as 3D screens, with or without 3D glasses (see Anaglyph image and Autostereoscopy), 'holographic displays', water screens and fog screens.
Due to cost issues, many of these newer technologies have as yet only employed for smaller "one-off" installations, rather than for large displays or networks.
Rapidly dropping prices for large plasma and LCD screens have lead to a growing increase in the number of digital signage installations. Another price-related benefit that is allowing a larger group of businesses to install digital signage is the increasing availability of newer LCD and plasma display brands in the market. Many users have opted to forgo more expensive brand name displays in favor of more affordable displays from less well-known companies.
Digital audiovisual (av) content is reproduced on TVs and monitor displays of a digital signage network from at least one media player (usually a small computer unit, but DVD players and other types of media sources may also be used). Various hardware and software options exist, providing a range of different ways to schedule and playback content. These range from simple, non-networked portable media players that can output basic JPG slide shows or loops of MPEG-2 video to complex networks consisting of multiple players and servers that offer control over enterprise-wide or campus-wide displays at many venues from a single location. The former are ideal for small groups of displays that can be updated via USB flash drive, SD card or CD-ROM. Another option is the use of D.A.N. (Digital Advertising Network) players that connect directly to the monitor and to the internet, to a WAN (Wide Area Network), or to a LAN (Local Area Network). This allows the end user the ability to manage multiple D.A.N. players from any location. The end user can create new advertising or edit existing advertisements and then upload changes to the D.A.N. via the internet or other networking options.
Developments in web services have meant the APIs for some digital signage software now allow for customized content management interfaces through which end-users can manage their content from one location, in a way which suits their requirement.
More advanced digital signage software allows content to be automatically created by the media players (computers) and servers on a minute-by-minute basis, combining real-time data, from news, to weather and prices, transport schedules, etc., with av content to produce the most up-to-date content.
Whenever the display, media player and content server are located apart there is a need for audio-video wiring between the display and the media player and between the media player and the content server. The connection from media player to display is normally a VGA, DVI, HDMI or Component video connection. Sometimes this signal is distributed over Cat 5 cables using transmitter and receiver baluns allowing for greater distances between display and player and simplified wiring. The connection from media player to content server is usually a wired Ethernet connection although some installations use wireless Wifi networking.
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 'onsite' 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.
Technologies such as IPTV allow digital signage to be used as a method of broadcasting. Convergence (telecommunications) between digital signage and broadcasting allows for real-time distribution of broadcast sources (TV) on a narrowcast network (digital signage). An example of this is the TelVue Corporation, a digital media company that has deployed its WEBUS community bulletin board (CBB) digital signage systems to a network of municipally owned public, educational, and government access (PEG) channels on cable television. The content is played according to instructions provided by play lists created by a broadcast programming system and the playout of content is controlled by a broadcast automation system.
Small, localized, digital signage networks can be amalgamated to form larger networks that span wider geographic areas. Specific time slots on the displays can be sold off to advertisers, for example via auction. This concept is known as a digital signage exchange. 
Digital signage can interact with mobile phones. Using SMS messaging and Bluetooth, some networks are increasing the interactivity of the audience. SMS systems can be used to post messages on the displays, while Bluetooth allows users to interact directly with what they see on screen. In addition to mobile interactivity, networks are also using technology that integrates social and location-based media interactivity. This technology enables end users to send Twitter and Flickr messages as well as text messages to the displays. Some signs use 3D displays that operate using autostereoscopy, which allow the viewer to see a 3D image without using special glasses.
The ITU published a whitepaper  in which SMIL is cited as "a key standard for the digital signage industry," and that SMIL "is increasingly supported by leading digital signage solution providers." It is reported  that SMIL players are deployed for nearly 100,000 screens in year 2011, and a single software maker has won three major projects each deploying more than 1,000 SMIL players in the same period.
POPAI has released several digital signage standards  to promote "interoperability between different providers". The objective of these standards documents is to establish a foundation of performance and behavior that all digital signage systems can follow. The current set of standards published by POPAI are:
Industry education has been limited, but more options are becoming available. At least one firm, Platt Retail Institute, offers formal education programs, and provides various research reports (such as the North American Digital Signage Index and the Journal of Retail Analytics, among others), as well as a searchable article library. Another option is manufacturers that offer technology focused training (firms such as Black Box Network Solutions and Ingram Micro). Several other firms offer introductory courses and IT-based training as well. In 2009, Texas State Technical College created an associate’s degree in Digital Signage Technology, using their Second Life delivery system.
Digital signage in the broad sense has been in use for decades in the form of LED ticker signs and LED video walls. However, despite its recent growth it has yet to become a major public medium, due in part to the following negative factors:
These issues are being addressed today in the following ways:
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