What is digital signage? 

Introduction: Definition of digital signage 

Digital signage refers to the use of digital media content for advertising and information purposes on electronic displays or projection surfaces. These are remotely managed digital displays that are typically used for sales, advertising and marketing. Key features of digital signage are the use of screens or projectors to display content, the centralised management and control of content and the ability to update content in real time. This technology is used in various locations such as shops, public places and companies.

Digital signage systems usually consist of displays, media players to play back the content, a content management system for administration and control as well as the necessary network infrastructure to distribute the content. Typical areas of application include advertising and marketing in retail, information displays in public places such as railway stations or airports, internal communication in companies as well as wayfinding systems.

The advantages of digital signage lie in the flexible and targeted approach to customers and the ability to update content quickly and centrally.

1. Importance and relevance of digital signage

In today's digital world, digital signage is becoming increasingly important as businesses and organisations look for more effective ways to reach and engage their target audiences. The relevance of digital signage lies in its ability to deliver visually appealing and dynamic content that captures people's attention and actively engages them.

Digital signage has become an integral part of the modern world, as it is versatile and can be used in almost any industry. From retail and hospitality to education and healthcare, digital signage offers the opportunity to disseminate information quickly and in a targeted manner. Especially at a time when visual communication is becoming increasingly important, digital signage is an indispensable tool for communicating messages effectively.

Another decisive advantage of digital signage is its cost efficiency. Compared to traditional advertising and information methods such as printed posters and flyers, digital signage allows for flexible and centralised control of content. This means that organisations can update content in real time without the additional cost and effort of printing and distributing physical materials. This not only saves companies money, but also allows them to respond more quickly and effectively to market changes and customer needs.

Digital signage also offers considerable advantages in terms of interactivity and personalisation. Modern digital signage systems make it possible to customise content based on demographic data, location or even current events such as the weather. These personalised messages increase the engagement of the target group and improve customer loyalty.

Another point is the possibility of data collection and analysis. Digital signage systems can be equipped with analysis tools that provide insights into the behaviour and preferences of the target group. This data can be used to further optimise content and refine marketing strategies.

In summary, digital signage is important today due to its ability to deliver dynamic and engaging content, its versatility, cost efficiency, interactivity and personalisation options. It offers businesses and organisations a powerful way to reach and engage their target audiences and is instrumental in improving communication in the modern digital world.

2. Areas of application for digital signage

Digital signage is used in a wide range of industries and offers numerous opportunities to effectively disseminate information and advertising. Here are some of the most important areas of application:

2.1 Retail

Digital signage is used in retail to improve the shopping experience and increase customer loyalty . Digital displays can show special offers, new products and promotions. For example, a fashion shop can use digital signage to highlight current sales promotions or play product videos to pique customers' interest. Interactive kiosks allow customers to browse products and obtain additional information, making it easier for them to make a purchase decision.

2.2 Hospitality industry

In the hospitality industry, including hotels and restaurants, digital signage is used to optimise the guest experience. Digital menu boards in restaurants display current menus and special offers, while digital signposts in hotels help guests find their way around more easily. For example, a hotel can use a display at reception to provide information about events, weather forecasts and local attractions.

2.3 Educational institutions

In schools, colleges and universities, digital signage helps to disseminate information quickly and efficiently. Digital display boards can display timetables, event information and important announcements. For example, a university can use digital signage to inform students about lecture changes, exam dates and campus events.

2.4 Companies and offices

Companies use digital signage for internal communication and to motivate their employees. Digital displays in offices can show company news, important dates and key performance indicators. In the lobby of a company, digital signage can be used to welcome visitors and provide information about the company. In meeting rooms, digital whiteboards can support collaboration and presentations.

2.5 Transport

Digital signage is used in the transport sector to provide travellers with important information. At airports, railway stations and bus stops, digital display boards show arrival and departure times, delays and other relevant information. For example, an airport can use large, highly visible displays to show flight information in real time, helping passengers plan their journey more efficiently.

2.6 Healthcare

Hospitals and clinics use digital signage to inform patients and visitors. Digital display boards can show waiting times, department locations and health information. For example, a hospital can install screens in the waiting area that display information on current health campaigns, rules of behaviour and visiting times to keep patients better informed.

2.7 Public spaces and events

In public spaces and at events, digital signage is used to distribute information and advertising. At trade fairs, conferences and in urban areas, digital display boards can show event schedules, signposts and advertising messages. For example, a city can install digital kiosks at tourist hotspots to provide visitors with information about attractions, events and local services.

3. Advantages of digital signage

3.1 Increased attention and commitment

Digital signage is characterised by its ability to present visually appealing and dynamic content that captures the viewer's attention. Moving images, animations and interactive elements are particularly effective in capturing the interest of the target audience and encouraging them to interact. These interactive features can range from touch screens to QR codes that provide additional information or interactive experiences. Studies have shown that moving images and interactive content have significantly higher engagement rates than static adverts, making digital signage a powerful tool for marketing and communication.

3.2 Flexibility and timeliness of content

A major advantage of digital signage is its flexibility and the ability to update content in real time. Companies can quickly and easily feed new information, offers or news without the need for time-consuming printing and distribution processes. These real-time updates are particularly valuable in fast-paced environments such as retail or transport, where up-to-date information is crucial. For example, retailers can instantly adjust seasonal offers and airports can update flight information in real time. This flexibility allows companies to respond quickly to market changes and customer needs, making their communication strategy much more effective.

3.3 Cost cutting compared to traditional advertising methods

Although the initial investment in digital signage can be higher, this technology offers significant cost savings in the long term. Traditional advertising methods such as printed posters and flyers require constant re-production and distribution, which is not only expensive but also time consuming. Digital signage eliminates these recurring costs. Once installed, content can be centrally managed and updated with minimal additional costs. This not only reduces ongoing expenditure, but also enables faster and more efficient adaptation to new marketing strategies or customer requirements.

3.4 Improved customer communication and experience

Digital signage offers an effective way to engage with customers and provide them with relevant information. By personalising content based on the location, time of day or demographics of the target audience, companies can tailor their messages to increase relevance and impact. These personalised messages improve customer loyalty and the overall customer experience. For example, retailers can display personalised offers based on customers' shopping habits, and restaurants can adapt menus based on the time of day or special events. This customised communication increases satisfaction and can lead to higher sales.

4. Technical requirements

4.1 Hardware components

Displays: Choosing the right display is crucial to the success of a digital signage system. Factors such as technology, size and resolution should be taken into account. LCD displays are widely used as they offer high image quality, are energy efficient and durable. They are particularly suited for indoor use. LED displays, on the other hand, are characterised by their high brightness and colour brilliance, which makes them ideal for use in bright environments and outdoors. Choosing the right display depends on the specific requirements of the location and the intended content.

Media players: Media players are small, powerful devices that ensure the smooth playback of content on the displays. They ensure that the content provided is shown on the digital signage displays. The selection of a suitable media player depends on the specific requirements, including supported formats, network capability and performance. Some media players are also equipped with additional features such as remote management and diagnostics, making it easier to maintain and manage the system.

Network infrastructure: A reliable network infrastructure is essential to ensure the centralised control and updating of content. This includes both the physical network connection and the corresponding software solutions for managing the content. A stable and secure network enables the smooth distribution of content to all connected displays and ensures that updates can be rolled out in real time. Companies should ensure that their network infrastructure meets the requirements of the digital signage system to minimise downtime and ensure optimal performance. Standard LAN or WLAN networks are sufficient for this.

4.3 Service and maintenance

Software service: To ensure the smooth operation of a digital signage system, comprehensive service agreements should be made. These services include installation, regular maintenance, software updates and technical support. A well-maintained system minimises downtime and ensures that content is always up-to-date and relevant. Companies should ensure that they have a reliable support team that can quickly intervene in the event of technical problems.

Hardware service: Despite regular maintenance, technical problems can occur that require repairs or the replacement of components. Efficient management of repairs and spare parts is crucial to minimise downtime. Companies should ensure that they have a sufficient stock of spare parts and that repairs can be carried out quickly and efficiently. This helps to ensure continuity of content and satisfaction of the target audience.

5. Content strategy for digital signage

5.1 Videos

Videos are one of the most effective forms of content as they combine motion and sound to convey information in an engaging way. They can include product demos, tutorials, customer reviews or promotional clips. The dynamic nature of video captures viewers' attention and can make complex messages easy to understand.

5.2 Images

Images are a powerful tool for visual communication. High-quality photos and infographics can create strong visual impressions and convey important information quickly. They are particularly suitable for adverts, product presentations and informative graphics.

5.3 Texts

Clear and concise messages are essential for conveying important information. Texts can include headlines, announcements, quotes or short descriptions. They should be easy to read and understandable at first glance.

5.4 Interactive elements

Interactive elements such as touchscreens or QR codes increase user engagement. They allow viewers to actively engage with the content and receive additional information or personalised experiences. Interactive kiosks or displays can be used in shops, museums or public places.

Although interactive elements are generally more expensive to produce as they have to be individually programmed, some digital signage providers offer integrated designer tools for interactive content. These tools enable users to create interactive elements themselves with just a few clicks. For example, sentiment surveys, card applications and product comparisons can be designed quickly and easily.

Tips for appealing and effective content

Clarity and simplicity: The content should be simple and easy to understand. Too much information or complex designs can be overwhelming and dilute the message. Concentrate on the essentials and convey your message clearly and directly.

Visual appeal: Use appealing graphics, colours and contrasts to attract the viewer's attention. A good design is visually attractive and supports the message. Use high-quality images and videos to make a professional impression.

Relevance and targeting: Adapt the content to the target group and the context. Relevant and targeted content is more effective and engaging. Take into account demographic data, location and current events to make the content as relevant as possible.

Call-to-action (CTA): Clear calls to action encourage viewers to take action. An effective CTA is concise and conspicuously placed. It should prompt the viewer to take a specific action, be it a purchase, visiting a website or taking part in a survey.

Regular updating and maintenance of content

Regular updates: Content should be updated regularly to ensure that it is always current and relevant. Outdated information can lose the viewer's interest and detract from the professional impression. When using digital signage displays in retail, it is possible to connect the content management system to the retailer's merchandise management system. This ensures that only current, in-stock items are displayed at all times.

Content planning: Create an editorial plan that structures the creation, publication and updating of content. A well-thought-out plan helps to ensure the consistency and relevance of content and to achieve long-term communication goals. By scheduling the content, the editorial plan can be created directly in the content management system.

Monitoring and analysis: Use analytics tools to monitor content performance and gain insights. Data such as viewer numbers, engagement rates and conversion rates can provide valuable insights and help to further optimise content. Continuously adapt your strategy based on these insights to maximise effectiveness.

6 Concrete results and findings

6.1 Increase in turnover

Many retailers report an increase in sales following the introduction of digital signage. Dynamic and appealing displays attract more customers and encourage impulse purchases. In his book ‘Digital Signage’, Retinger describes up to 33% higher sales for retailers. 

6.2 Improved customer loyalty

By providing relevant and appealing content, companies can improve customer loyalty. Customers feel better informed and valued, which leads to greater loyalty.

6.3 Efficiency gains

In companies and public institutions, digital signage helps to increase efficiency by distributing information quickly and precisely. This reduces the need for printed materials and manual updates.

6.4 Positive customer experiences

Digital signage helps to improve the customer experience by delivering engaging and relevant content. Customers appreciate the visual and informative presentation of offers and information.

7. Summary and the future of digital signage

To summarise, digital signage is a powerful technology that offers significant benefits to companies in various industries. From increasing sales in the retail sector to improving customer loyalty and better efficiency in companies and public institutions - the possible applications are diverse and promising. The centralised management and real-time updating of content offers companies a flexible and cost-effective way to reach and engage their target groups.

The future of digital signage looks promising, as the technology is constantly evolving and new applications are emerging. With the increasing integration of artificial intelligence and data analysis, digital signage is becoming even more personalised and effective. Companies should take advantage of the opportunities and possibilities offered by digital signage to optimise their communication strategies and achieve long-term success.

Future trends in digital signage

AI supported content: Artificial intelligence (AI) is increasingly being used to create personalised and relevant content for digital signage displays. AI can be used, for example, to analyse the interests of users and provide them with suitable content.

Immersive technologies: Immersive technologies such as virtual reality (VR) and augmented reality (AR) are becoming increasingly popular and can also be used in digital signage solutions. This can enable companies to offer their customers unique and unforgettable experiences.

Sensor technology: Sensors in digital signage displays detect the environment and interact with users. This can be used, for example, to provide personalised information or to adapt the content on the displays to the number of users.

Utilise the benefits of digital signage for your business and stay one step ahead of the competition. Contact us today to find out more about our innovative solutions and how we can help you revolutionise your communication strategy!