What is digital signage? A practical guide to displays, costs and operation

The key points at a glance:
Digital signage is the digital successor to traditional signs and posters: networked displays that can be centrally updated with static and moving content. The biggest mistake is to approach the project from the perspective of the display itself.
After all, the display is usually the cheapest part. The real value lies in the software, content and operation.

- What digital signage is and how it differs from static signage

- Why the hardware is rarely the decisive cost factor

- Which display sizes, systems and technical requirements matter

- What digital signage costs: in terms of purchase and ongoing operation

What exactly is digital signage, and is it worth it? More and more businesses are replacing printed signs with digital displays – on the shop floor, at reception and in branches. The questions behind this are very similar. This guide answers the most important ones, in the order in which they arise in practice.

Quick question, quick answer:

What is digital signage? Networked displays that are fed content centrally and replace static signage.

How much does digital signage cost? Hardware, software and installation per location, plus ongoing costs for licences, maintenance and content.

What is the most important factor for success? Not the display itself, but the concept behind it: who manages the content, and how is it controlled centrally?

Are you considering digital signage for your sites? We’d be happy to provide you with an initial expert assessment of the concept, technology and costs involved. Enquire without obligation →

What is digital signage?

Digital signage refers to the use of networked displays that are fed content centrally – ranging from prices and product information to wayfinding, campaigns and videos. Instead of static signage such as a printed aluminium Dibond panel, which has to be reproduced from scratch for every change, digital signage can be updated in seconds and rolled out across all locations.

The appeal lies in its flexibility: a campaign created centrally can appear immediately in all branches as required. A price change is just a few clicks away, not a print job. And the screen that displays service offers in the morning can show brand content in the evening. This is precisely why a replacement for signs often becomes a long-term communication platform. You can see how SIGMA AV plans and implements such projects on our AV integration page.

Why the display is the cheapest part of your project

Anyone planning digital signage looks first at the displays – understandably so, as they are the visible element. However, the hardware has now largely become a commodity: powerful, readily available, and its price has fallen over the years. The real added value lies elsewhere.

It lies in the concept (what should be seen where, when and by whom?), in the content (who designs and maintains the content?) and in the operation (how is content managed, updated and monitored centrally?). A project where the displays are perfect but nobody provides fresh content will fizzle out. A project with average hardware but a clear content concept and reliable operation pays off.

Just how much of a difference the content makes is demonstrated by our work in the field of interactive media and the PAPER & TEA project: there, SIGMA installed LED films almost invisibly behind a printed papyrus film. The technology recedes completely into the background, and it is the digital content – such as gently moving shadows of plants – that creates the atmosphere. Here, the display is literally not what matters.

Want to see how this works in practice? In our reference projects, you’ll find digital signage ranging from individual locations to nationwide rollouts.

Which display sizes and types are suitable?

The appropriate size depends on the viewing distance and the intended purpose. At reception desks or check-in counters, where people stand close by, smaller displays are sufficient; for areas intended to be viewed from a distance, larger formats or a display wall comprising several seamlessly arranged screens are required. The type of display is important: professional models designed for continuous operation are used for digital signage – not consumer televisions from electronics shops.

Two projects illustrate just how varied the outcomes can be: in the Vodafone flagship stores, SIGMA has integrated video walls up to seven metres high, made up of seamless displays, which create a striking customer experience. For the more than 30 FIT/ONE studios, on the other hand, SIGMA has rolled out a large number of displays across many locations and feeds them with centrally controlled content. We have summarised the requirements specifically for the retail sector on our page on media technology in retail.

Would you like to know what’s possible overall? You can find an overview of our services, from planning through to operation, under ‘Our Competences’.

Wall or ceiling mounting: which is best?

From a technical perspective, the environment is the deciding factor: wall mounting is the norm because it is stable, easy to maintain and unobtrusive. Ceiling mounting or suspended solutions are worthwhile where no suitable wall is available or where displays are intended to be clearly visible throughout the space – for example, in open-plan retail areas. In economic terms, wall mounting is usually more cost-effective as it requires less substructure and effort; free-hanging solutions are more complex but offer greater flexibility in terms of placement.

The digital transformation at the Düsseldorf Schauspielhaus demonstrates that even challenging environments can be accommodated: there, SIGMA has mounted displays on listed, curved walls and also integrated flexible individual displays that can be positioned freely.

Digital signage software: centrally managing multiple locations

This is where the real leverage lies. Good digital signage software – often referred to as a content management system – allows content to be created, planned and delivered in a targeted manner from a central location: to a single display, a group of sites or all branches simultaneously. Changes are implemented remotely, without the need for anyone to be on site. This is precisely what makes campaigns efficient and manageable.

For the Schauspielhaus, for example, a system was implemented that allows all components to be centrally managed, controlled and monitored – from the large display to individual screens connected wirelessly. When selecting a solution, it is worth considering questions such as: How easy is it to maintain content? Can content be scheduled? How are faults detected? And does the system scale to accommodate additional locations? The Managed Service is available for day-to-day operations, including monitoring and maintenance.

In practice, systems such as BrightSign are frequently used as media players – we also utilise them in projects such as the FIT/ONE Studios: robust, designed for continuous operation and reliably integrated into central CMS systems.

Are you considering replacing static signage with digital signage? SIGMA provides advice on everything from the initial concept through to selecting the right software and day-to-day operation. Get in touch now →

What technical requirements are necessary?

Three points should be clarified at an early stage: the network (each display requires a reliable connection – either wired or via Wi-Fi – for centralised control), the power supply (sockets in the right places, ideally concealed) and an internet connection (for centralised remote management and content delivery across multiple locations). For continuous operation, professional displays and players designed to handle many hours of daily use are also essential. These requirements may sound unremarkable, but they are crucial for day-to-day reliability.

How much does digital signage cost?

There is no fixed price, but there is a clear structure. The investment per location comprises hardware (displays, players, mounts), software (licences for the content management system) and installation (assembly, cabling, set-up). On top of this come running costs: software licences are usually billed per display per year, plus maintenance and – often underestimated – the effort involved in content management.

Regarding digital signage costs: the hardware is rarely the largest expense over the lifetime of the system. If you only compare the displays, you’ll end up underestimating the actual cost. A realistic budget takes software, operation and content into account right from the start.

Frequently Asked Questions about Digital Signage

Conclusion

What is digital signage? It is far more than just a screen displaying adverts; it is a flexible communication platform that replaces static signage and allows content to be managed centrally. The key shift in perspective is this: it is not the display that determines success, but the concept, software and operation. Those who approach their project from this perspective make better decisions – and avoid the disappointment of having expensive displays that nobody fills with good content.

SIGMA supports your project from the initial concept, through selecting the right software, right through to day-to-day operation. You can find further specialist articles in our Newsroom.