Digital Signage 101: Everything You Need to Know (2025)

Are you a business owner looking for new ways to stand out, engage customers, and increase revenue?

Most people ignore static billboards, posters, or screens that show yesterday's promotions, outdated event schedules, or irrelevant alerts.

Businesses waste resources manually updating content and lose sales when messages fail to reflect real-time changes.

This can be fixed with digital signage.

It is a popular communication tool that functions as a self-service hub, reducing client frustration while freeing up employees.

In fact, 76% of customers have entered a store after being drawn in by digital signage.

This guide will teach you everything you need to know about digital signage, including how it works and why it matters.

Whether you're a startup or an established business, these strategies will help you maximize impact without wasting space or electricity.

Let's get started.

What is Digital Signage?

Digital signage uses electronic displays or screens to deliver multimedia content such as images, video, text, and live data to targeted audiences in real-time via remotely controlled software.

These systems are widely used in commercial and public spaces to engage and inform audiences.

Unlike printed ads, digital signage displays use technologies like LCD, LED, or OLED display screens to show interactive content and let businesses change messages instantly, such as:

• Advertisements
• Promotions
• Product demonstrations
• Emergency alerts
• Live social media feeds

It is a live communication layer that adapts to specific times, locations, or audiences.

How Does Digital Signage Work?

Think of digital signage as a TV screen that shows pictures, videos, or menus you control. Instead of paper posters or static boards, you use a screen to display updates instantly.

For example, McDonald's uses self-service terminals called kiosks that let customers browse menus and place orders without the aid of staff.

Here's how it works:

• Content Creation: You use your computer or phone to create material such as food images, promo videos, and daily specials.
• Uploading: You send that content to your screen via a simple app or website, just like how you upload images to social media.
• Display: The screen shows your content on a loop or at specific times.

What You Need to Set Digital Signage Up

You don't need to be a tech expert to use digital signage.

Here's the basic setup you need to make it work:

A Screen:

• Any TV, monitor, laptop, or tablet you already own.
• For outdoor areas like drive-thru displays, use weatherproof screens.

Media Source:

• A media player that connects to your screen and plays content, like how a DVD player plays movies.

Digital Signage Software:

• A simple app or website where you design and schedule what shows up on your screen.
• A Content Management System (CMS) enables you to control when and where content appears, manage screens from anywhere, connect with other systems, and design custom layouts to provide content that looks great on every device.

Content:

• This will include photos of your dishes, promo videos, or text updates.
• You can create this yourself or hire a designer for fancier graphics.

What are the Types of Digital Signage?

Digital signage isn't a one-size-fits-all tool. Its functionality and design vary based on use cases and hardware.

Different types of digital signage solutions include:

Interactive Digital Signage

Interactive displays are screens that enable direct user actions, typically in the form of self-service kiosks and digital information booths.

They use touchscreens, gesture control, proximity sensors, NFC card readers, or QR code generators linked to digital wallets.

For example, a restaurant kiosk lets diners customize orders, pay via Apple Pay, and send tickets directly to the kitchen.

Digital Menu Boards

Digital menu boards use high-definition monitors to display restaurant menus, prices, sold-out items, and special offers.

Common use cases include:

• Quick-service restaurants showcasing drive-thru menus.
• Coffee shops displaying seasonal drinks.
• Concession stand items and pricing.

For example, a fast-food chain can update all locations menus at midnight via a cloud CMS, pushing limited-time offers without staff input.

DOOH Advertising Displays

Digital Out‐of‐Home (DOOH) displays are high-impact screens installed in public locations to broadcast advertising content based on time of day or audience demographics.

They are mainly used for:

• Convert foot traffic with limited-time offers.
• Replace printed banners ****to save money.

Video Walls

Video walls are made up of several small screens that are put together to form big, high-resolution canvas for powerful visuals.

They are used in dining areas, entrances, and event venues, where synchronized playback across panels provides immersive branding or educational content.

Immersive Displays

Immersive displays blend screens into physical spaces to enhance the viewing experience, such as curved video walls, bendable LED panels, or transparent OLEDs.

They might include virtual reality, simulations, and 3D content, offering a realistic visual experience.

Electronic Shelf Labels

Electronic shelf labels (ESLs) are small digital displays mounted to shop shelving that display product prices, promotions, and stock information.

They prevent manual price tag changes by centralizing updates and showing additional information, such as expiration dates or QR codes for product information.

How to Set Up Digital Signage?

Using digital signage is no longer a complex process.

Here are the simple steps you can follow to get started.

Plan Your Content Strategy

• Identify your target audience and choose content types.
• Recognize your audience's demographics so that you can adjust your content strategy.
• Create a scheduling calendar that links messages to peak foot traffic times or operational needs.

Choose the Right Hardware

Buy a screen if needed. Select commercial-grade displays with the proper size, resolution, and brightness for indoor or outdoor use.

• High-Brightness: Sunlight-readable LED with IP65 rating.
• Small Spaces: Ultra-thin 32" touchscreens with built-in media players.
• Energy-Sensitive: E-paper displays for static menus.
• Hybrid Screens: For areas needing both video (LCD) and bold text (LED).
• Mounting: Anti-tamper brackets and cables.

Pick a CMS

• Choose between cloud-based or on-premise CMS.
• Sign up and verify device authentication and encrypted channels.

Create and Upload Content

• Use design tools like Canva to drag and drop photos, text, or videos, or use pre-built templates.
• Integrate live data (weather, news, social media feeds) to keep your displays fresh.
• Set times for content to play. For instance, you can rotate breakfast/lunch/dinner menus.

Install and Test Your System

• Use mounts or weatherproof enclosures to install screens.
• Connect media players to displays, plug-in power, and establish network connectivity.
• After installation, test everything to confirm that the system runs smoothly.
• Make sure your content shows up clearly.

Final Words

Digital signage isn't about following trends but solving your brand's unique challenges.

It is a powerful tool to turn customer interactions into measurable outcomes and enhance the customer experience.

With the right approach and tools, digital signage can become a valuable part of your marketing strategy, allowing you to connect with customers in exciting ways.