Digital signage is screens used to show videos, images, or real-time information. It is widely replacing posters and billboards by offering the flexibility to change content quickly and efficiently and keep people engaged.
At its core, digital signage comes down to two things: hardware (screens and media players) and software. The digital signage software controls what shows (the content) on the screen, while the hardware displays it.
Digital signage is all around us, especially in places like stores, airports, restaurants, hotels, warehouses, manufacturing locations, clinics and hospitals. It helps businesses share updates, promote products, and communicate with customers and employees.
If you’re looking to start with digital signage, you have two options: buy the hardware and software separately or work with a provider that does both. Going with a provider is simpler as they handle everything from setup to content management while making your life easier.
The Building Blocks of a Digital Signage Ecosystem
Digital signage systems consist of several key components that work together to deliver content to displays.
These include software, hardware, the content itself, integrations with other tools, and the network infrastructure that ties everything together.
Software
The heart of any digital signage setup is the digital signage software, also known as the content management system (CMS). This software controls what content appears on the screens, when it shows up, and how often it gets updated.
- Content management: The CMS allows you to upload, organize, and schedule content, ensuring the right message is displayed at the right time.
- Deployment control: You can remotely push updates to one or more displays, no matter where they are located, keeping your messaging fresh and relevant.
- Scheduling: Set specific times and dates for your content to run, whether for daily, weekly, or seasonal campaigns.
- Integrations: Many digital signage systems integrate with other platforms like social media, weather services, BI Analytics tools, or even customer management tools to keep content dynamic.
- Analytics: You can track how your content performs in real-time—like seeing how many people interacted with a display (like touchscreens and kiosks) or how often certain content played.
- Remote management: Whether you're in the same building or halfway across the world, digital signage software lets you manage your screens remotely, avoiding the need for constant onsite attention.
L Squared’s CMS makes way for seamless operations with easy content scheduling and deployment across multiple screens in different locations.
Hardware
Displays and media players are the physical components that bring your digital signage to life. Depending on your needs, you can choose from a variety of options to suit your environment.
- Displays: These are the screens that show your content. Common options include LED, LCD, and OLED displays, each with specific advantages around brightness, durability, and viewing angles. For example, touchscreens can also be used as interactive displays.
- Media players: These small devices feed content to the displays. They can be standalone units or built into the displays themselves.
💡Pro tip: Choose a provider that can relieve you from bulky media players by installing SoC (system on chip) displays. Just install the software and play your content.
- Mounts and enclosures: These ensure your displays are securely placed. Wall mounts are standard for indoor setups, while weatherproof enclosures protect outdoor screens from the elements.
L Squared’s integration with leading brands like Samsung, LG, Viewsonic, Sony, Phillips, Videri and stored and warehoused by Best Buy Business ensures compatibility, minimizes issues, and offers a one-stop solution for both software and hardware requirements.
Content
The content you show on your displays is just as important as the technology behind it. Digital signage software can showcase versatile content, making it flexible for different environments.
- Videos and images: These are the most common forms of content ideal for promotions, announcements, and ads.
- Social media feeds: Real-time updates from platforms like Twitter, Instagram, or Facebook can keep your content relevant and engaging.
- User-generated content: Display customer reviews, photos, or comments to build trust and foster community engagement.
- News and weather: Pull live updates from news or weather services to keep your audience informed in real-time.
Integrations
Digital signage software isn’t just a standalone system. It can integrate with other tools and technologies to offer more engaging, real-time experiences.
- APIs and SDKs: These tools allow you to sync your digital signage with other systems like point-of-sale (POS) software from Toast, customer databases, or even social media platforms. For example, a restaurant could display real-time menu updates from its ordering system.
- IoT sensors and triggers: Interactive signage can respond to physical triggers such as motion sensors from Cisco or touch screens from ELO. For instance, a retail store could have a screen change content when a customer approaches or interacts with the display.
Network Infrastructure
A reliable internet connection is crucial for digital signage software, especially when you’re managing multiple screens across different locations.
- Wi-Fi or Ethernet: Most digital signage setups need a solid connection to pull content updates or manage displays remotely. A wired setup is difficult to bring together but is proven to be more reliable than a wireless connection.
- Cloud-based systems: Many modern digital signage solutions are cloud-based through Azure or AWS, meaning content and settings are managed online. This makes it easier to update content across multiple locations without needing physical access to the screens.
- Offline mode: Some systems allow for offline operation, where content is preloaded onto the media players. Even without a constant connection, the displays will continue running as planned.
Key Features to Look for in Digital Signage Software
The best digital signage software will be packed with features that make it easier to control, customize, and optimize your digital displays.
Content Management Capabilities
- Centralized Control: You don’t want to waste time managing screens one by one. Centralized control gives you the ability to handle every display from one place. With a single interface, you keep your messaging sharp and consistent, without having to hop between platforms or locations.
- Scheduling and Automation: Think of this as the backbone of your system. You schedule content to show exactly when you need it—whether it’s for a morning promo or an afternoon announcement. The best part? You don’t have to manually update it all the time. It runs like clockwork, making sure your displays stay relevant.
- Content Creation Tools: You don’t need to be a design pro to make your displays pop. The built-in content tools give you easy-to-use templates, drag-and-drop features, and support for videos, images, and text. You can create professional-looking content without breaking a sweat.
Integration Capabilities
- Hardware Compatibility: Not all screens work the same way, but with solid hardware compatibility, your software works with all kinds of displays—whether they’re TVs, tablets, or desktop monitors. This means you don’t have to worry about buying specialized gear just to make your content show up right.
When you leverage digital signage TV software, you can ensure seamless integration and optimized content delivery across all devices
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Software Integration: Your digital signage software should play nicely with the rest of your tech. Whether it’s pulling in live data from your CRM or displaying social media feeds, smooth integration with other platforms ensures everything works together, making your signage a real-time extension of your operations.
- API Access: If you like getting under the hood, API access is your playground. This feature lets you sync your digital signage software with third-party apps, automate workflows, and build custom dashboards. Whether you want to pull in external data or build something unique, API access gives you full control over customization.
Real-Time Updates
- Live Data Feeds: Keep your audience informed by displaying real-time information like stock prices, weather updates, breaking news, data from warehouse management software or social media feeds. This is especially helpful in high-traffic areas for informing employees or engaging customers. L Squared’s digital signage software supports real-time updates to ensure that businesses always stay relevant and in control.
- Instant Content Changes: When you need to update content quickly, this feature lets you do it in real-time. Whether it’s a last-minute promotion, an urgent announcement, or an emergency alert, you can swap out content across all your displays instantly, making sure the message gets out when it’s needed most.
Reporting and Analytics
- Performance Metrics: If you want to know how well your digital signage is doing, performance metrics provide valuable insights. You can track viewership, interactions, and overall engagement, so you’ll know what’s working and what needs adjustment.
- Content Effectiveness: Not every piece of content hits the mark, but with analytics, you can quickly identify what resonates with your audience. You’ll know which content gets the most attention, allowing you to optimize your displays for maximum impact and engagement.
Interactive Features
- Touchscreen Capabilities: Touchscreen functionality lets your audience directly engage with your content, whether it's browsing a product catalog, navigating an office, or accessing important data. This turns your displays into a gateway for interaction.
- Beacon Technology: Enhance personalization by using beacon technology to send targeted messages to people’s devices as they approach your displays. Imagine sending a shopper a special discount notification when they walk by your store or welcoming visitors with personalized content as they approach a display.
- QR Code Integration: Make it easy for users to engage further with your content by integrating QR codes into your signage. Whether it’s offering more information, a special promotion, or a feedback form, QR codes provide a seamless way to move from physical displays to digital interactions.
Security and Compliance
- Network Security: Strong security measures are critical as digital signage software is often connected to the internet or internal networks. Ensure the software offers encryption, secure data transfers, and protection against unauthorized access.
- Data Privacy Regulations: Particularly in industries like healthcare or finance, digital signage systems should comply with local data privacy laws (e.g., GDPR, HIPAA).
Security Compliance: Make sure your supplier has SOC2 or ISO: 27001:2022 compliance as this is a key security requirement.
Also read: Best practices for protecting content on the cloud with digital signage
Scalability
- Adaptability to Growing Business: Look for software that scales as your business expands. It should easily handle additional displays, locations, and more complex content without requiring extensive upgrades or customizations.
- Flexible Licensing Models: Ensure the licensing model is scalable to avoid unexpected costs as you add more screens or users.
How to Buy Digital Signage Software
When you’re buying digital signage software, it’s not just about picking a product with a good feature set. You need a system that fits your business, gets the job done, and grows with you. Here’s a detailed step-by-step process to guide you through buying the right digital signage software.
Step 1: Define your business goals
Start by being very clear about why you’re investing in digital signage. Are you aiming to increase sales, enhance customer experience, improve internal communications, or provide real-time information? Nail down the specific outcomes you expect—these become your KRAs (key result areas). Then, establish the metrics you’ll track to measure success (KPIs), such as foot traffic, customer engagement, or internal communication feedback. Here are some questions you can ponder upon:
- What key metrics do you want to improve? (Foot traffic, engagement, customer experience, warehouse safety, etc.)
- What’s the primary objective of your digital signage? (Boost sales, improve internal communication, provide real-time information, keep employees safe?)
- How will you measure success? (Increased sales, employee feedback, higher customer retention, employee safety?)
Step 2: Align with your content strategy
Your digital signage software is only as good as the content you display. Before choosing software, ensure it aligns with your broader content strategy. Think about the types of content you need, how frequently you’ll update it, and whether the software has the right tools to support that. For instance, a hotel might need to schedule content based on the time of day, so choosing software with robust scheduling features is key.
Step 3: Involve key stakeholders early
Digital signage affects multiple departments. Get input from everyone involved—marketing, IT, operations, HR, warehouse operators and leadership. They’ll each have different needs and expectations from the system. For instance, your IT team might care about system security and compatibility, while marketing will focus on content scheduling and design flexibility. Early involvement means you get the right feedback before committing, avoiding pushback later.
Step 4: Map out process flows
Before you even think about choosing a digital signage software vendor, plan how digital signage fits into your existing processes. Determine who will be responsible for managing the content, who will oversee scheduling, and how updates will be handled. For example, if you run a chain of retail stores, or have multiple warehouse locations decide whether content will be managed centrally or locally. Planning this workflow helps you choose software that supports your operational needs.
Step 5: Build a data management strategy
Digital signage software often pulls data from multiple sources such as customer data, social media feeds, and internal databases. Having a clear data management strategy ensures the software can access, store, and display the right data in real-time without any issues. Let’s say you’re running signage for multiple retail locations, or multiple warehouse locations each displaying real-time inventory. You'll need a data management system that ensures the signage pulls accurate stock levels for each location from your ERP system.
Step 6: Choose a vendor with industry expertise
Digital signage is not a one-size-fits-all solution. Pick a vendor that understands your industry and has a proven track record of delivering results in similar setups. For example, a retail-focused vendor will understand how to support promotional content that changes quickly, while a corporate vendor might specialize in internal communication tools, or a manufacturing specialty vendor can support health and safety or efficient operations . Ask for case studies or examples of how they’ve solved challenges in businesses like yours.
Step 7: Look for full-service implementation
Go for a vendor that offers end-to-end service—covering everything from initial setup to ongoing maintenance. Handling hardware, digital signage software, and support through a single provider reduces complications. They should be able to take charge of installation, configuring the system, training your staff, and providing ongoing support. This way, you avoid the nightmare of coordinating multiple vendors and can hold one party accountable for any issues that arise. L Squared takes care of everything from setup to ongoing maintenance, offering reliability for businesses looking for a full-service solution.
Hold them accountable for system performance, both during and after installation. Ask about:
- Post-implementation support: Do they offer 24/7 customer service? Is there a dedicated team for troubleshooting?
- Warranty and SLA: What’s included in the service-level agreement? Does it guarantee uptime and timely responses?
Step 8: Evaluate software features based on your needs
Don’t just look at feature lists—focus on the features that solve your specific challenges. Here's a quick breakdown of key features you should prioritize:
- Centralized control: Manage all screens from one place, especially if you’re dealing with multiple locations.
- Content scheduling: The ability to schedule content in advance and automate it based on time or audience. For example, a hotel can schedule breakfast promotions in the morning and switch to spa deals in the afternoon without manual updates.
- Real-time updates: Push emergency alerts, flash sales, or last-minute announcements across your displays instantly.
- Scalability: Whether you're starting with 10 screens or planning to scale to 100, your software should handle it without requiring an overhaul.
Step 9: Focus on hardware compatibility
Your digital signage software must work seamlessly with the displays you plan to use. Whether you’re using LED, LCD, OLED, or touchscreens, ensure the software supports a range of display types and media players. Also, consider future expansion. If you decide to add interactive displays down the line, the software should be ready to handle that without additional costs or upgrades.
Step 10: Ensure integration with existing systems
Your digital signage software isn’t going to work in isolation. It needs to sync with other systems like your CRM, ERP, or social media platforms. For example, if you're running promotions based on inventory, your signage should update in real-time based on stock levels. Or, if you want to display customer data, make sure the software integrates with your CRM seamlessly.
Step 11: Evaluate training and support
Even the best digital signage software is useless if no one knows how to use it. Ask vendors about their training programs and support. Will they offer onboarding for your team? Do they provide ongoing support when you hit a snag? If they don’t have dedicated customer support, consider that a red flag—especially if you’re dealing with multiple locations or complex operations.
Step 12: Don’t forget about security
Your digital signage software needs to be secure. Make sure the vendor has protocols in place to protect your system from breaches, especially if the software connects to the internet or integrates with other business-critical systems. You don’t want your signage system to become the weak link in your company’s security. Look for SOC2 compliance or ISO 27001:2022 certification.
Step 13: Analyze costs and licensing models
Pricing can vary wildly between vendors, and you don’t want any surprises down the line. Some charge by the screen, others by users or features.
Be clear on what’s included in the base price, and check for hidden fees—especially for things like extra support, future upgrades, or additional users. If your signage needs will expand, make sure the cost structure won’t balloon out of control as you add more displays.
Before making a decision, compare your budget with the total cost of ownership. Factor in upfront and recurring costs into your cost-benefit analysis.
Step 14: Plan for scalability
Don’t just buy for your current needs. If your business grows, your digital signage software should be able to grow with it. Check how easily the system can scale. For example, if you’re adding more locations or screens, does the software support that without needing an upgrade? Ensure the software can handle more complex content, more users, and more integrations as your business evolves.
Check out: Roadmap to choosing the right digital signage software
Measuring the Impact of Digital Signage Software
When investing in digital signage, you need to assess both ROI (Return on Investment) and ROO (Return on Objectives). While ROI measures the financial return, ROO evaluates how well your signage meets your business goals. Both are crucial for understanding the full impact of your digital signage software.
Difference between ROI and ROO in digital signage
ROI is the traditional financial metric, focusing on how much revenue your digital signage generates compared to its cost. It’s a dollars-and-cents calculation that shows if the investment is worth it from a purely financial standpoint.
ROO, on the other hand, looks at the non-monetary returns. It tracks how well digital signage helps you achieve your business objectives, like improving customer engagement, increasing brand awareness, or driving internal communication. ROO is essential for goals that don’t translate directly into revenue but still provide significant business value.
L Squared is your go-to software solution for both ROI and ROO tracking tools. Its comprehensive suite allows businesses to measure their digital signage's effectiveness in achieving financial and operational goals.
How to measure the ROI of digital signage software
Measuring the ROI of digital signage requires looking at a range of financial metrics that show how much the system is contributing to your bottom line. Here are the key metrics you should track:
Sales Uplift
One of the most direct ways to measure ROI is by comparing sales before and after implementing digital signage.
For example, in retail settings, track how product promotions displayed on screens lead to increased sales during and after the campaign.
How to measure: Compare sales figures from the same period before and after implementing digital signage. Identify specific promotions or locations where signage was used and analyze the corresponding sales lift.
Customer Conversion Rate
If your signage is placed in a point-of-sale (POS) area, measure how many viewers convert into buyers. This helps gauge the effectiveness of promotional content or special offers displayed on your screens.
How to measure: Track the number of people exposed to the signage versus the number of people who complete a purchase. Use tools like traffic counters or sensors to monitor foot traffic and measure how many of those people engage with the promoted product or offer.
Cost Savings from Printed Materials
Digital signage software eliminates the need for printing new posters, flyers, or static billboards every time you update content. This can significantly cut down on printing and labor costs over time.
How to measure: Track how much you typically spend on printing and distributing physical materials. Compare this to the cost of maintaining your digital signage system and calculate the savings.
Increased Dwell Time
Longer dwell time—how long people spend in front of your screens—often leads to more sales or deeper engagement. If your signage holds a viewer’s attention, they’re more likely to buy or take the desired action.
How to measure: Use analytics tools (such as sensors or cameras) to monitor how long people stay in front of your signage. Compare this with previous behavior when no signage was present to see if there’s a noticeable increase.
Advertising Revenue
If you’re using digital signage software to display ads (e.g., in shopping malls, transportation hubs, or other high-traffic areas), track the revenue generated from these advertising slots.
How to measure: Keep track of the rates you charge advertisers and calculate the revenue from each campaign. Factor in the cost of running and maintaining the signage to determine the net profit from advertising.
Operational Efficiency Gains
Digital signage software that automates processes—like communicating shifts, promotions, or schedules—can save time and labor costs. This efficiency leads to fewer manual errors, quicker content updates, and improved communication across departments.
How to measure: Compare how much time and money you spent on manual processes (e.g., updating static signs, communicating with staff) before digital signage. Measure the time saved and convert that into a financial figure.
How to measure the ROO of digital signage software
While ROI measures the financial side, ROO helps you track whether your digital signage is meeting your broader business objectives. These metrics focus on engagement, brand impact, and overall communication effectiveness.
Customer Engagement Levels
One of the primary objectives of digital signage software is to grab attention and engage customers. This can be measured through interactions with interactive screens, responses to calls-to-action, or general customer behavior in response to your signage.
How to measure: Use tools like interactive touchpoints or motion sensors to track how many people engage with your displays. For example, in a retail environment, measure how many customers interact with a touchscreen display to explore product options.
Brand Awareness and Recall
If one of your objectives is to boost brand awareness, measure how well your signage is getting your brand message across. Brand recall surveys can help assess whether your audience remembers key messages or promotions displayed.
How to measure: Conduct surveys or focus groups to evaluate how well people remember your messaging. Use methods like “aided” or “unaided” recall to understand the effectiveness of your signage in reinforcing your brand.
Employee Engagement and Communication
In corporate settings, digital signage software is often used to improve internal communications, such as delivering important updates, promoting wellness programs, or boosting employee morale.
How to measure: Use employee feedback surveys to assess how well the signage is keeping employees informed and engaged. Track the participation rate in programs promoted through the signage and compare it to previous methods of communication.
Increased Foot Traffic
If your goal is to bring more people into a store, office, or location, track how well the signage influences foot traffic. This is particularly relevant in retail or hospitality settings where physical presence matters.
How to measure: Use traffic counters at store entrances or sensors near your displays to measure the change in foot traffic. Compare data from periods before and after the signage was implemented, and identify any direct correlations between the content shown and increased visitors.
Social Media Engagement
If you’re using digital signage to promote social media interactions, like displaying hashtags or encouraging user-generated content, track how well it translates into social media engagement.
How to measure: Monitor your social media analytics to see if there’s an increase in posts, mentions, or engagement around the specific calls-to-action promoted on your digital signage. Compare the activity before and after you displayed the relevant content.
Improved Customer Experience
Digital signage software can be used to improve the customer experience through interactive elements like self-service kiosks, product recommendations, or wayfinding. Better customer experience often leads to improved satisfaction and retention.
How to measure: Collect feedback through customer satisfaction surveys or exit interviews to gauge whether the signage has had a positive impact. You can also track metrics like reduced wait times (e.g., in a queue) if the signage is used for directions or guidance.
Reduced Bottlenecks
If your objective is to streamline internal processes (like updating employees or sharing real-time data), track how well the signage system reduces friction in operations.
How to measure: Measure the time saved on manual processes, like printed announcements or verbal updates, and analyze whether the digital signage has led to faster, more efficient communication.
How Digital Signage Software Will Evolve
Digital signage software is evolving, and the future is full of exciting possibilities.
AI and automation will play a big role enabling screens to adapt in real-time based on who’s watching. Imagine personalized content, whether in a store or corporate setting, adjusting automatically without manual effort.
Sustainability is another key trend. Energy-efficient displays and cloud-based content management will cut down costs and environmental impact. With fewer printed materials, businesses can go green while staying relevant.
Data analytics will become indispensable, letting businesses measure engagement and optimize content. Metrics like dwell time and interaction rates will help refine strategies, ensuring your signage delivers maximum impact.
L Squared is already embracing these trends, providing a future-ready digital signage solution that combines cutting-edge AI, sustainability features, and advanced analytics. To see how these features are shaping the industry, explore our blog on the best digital signage software platforms, where we discuss the tools that are helping businesses stay ahead.
Frequently Asked Questions
Q. What are the benefits of digital signage software?
- Centralized content control across multiple locations
- Real-time updates for dynamic messaging
- Integration with social media, CRM, and data feeds
- Cost-efficient alternative to traditional print materials
- Advanced analytics to measure engagement and performance
Q. Who should use digital signage software?
Use digital signage software if you're struggling with outdated or fragmented content management, need to scale across multiple locations, or if traditional signage methods aren't delivering results. It's ideal for businesses aiming for dynamic, real-time communication without high operational costs.
Q. How do I set up digital signage software?
Setting up digital signage is seamless and hassle-free with L Squared. Our platform handles everything, from installation to cloud-based content management. Once installed, you’ll have access to a centralized dashboard for easy content scheduling, updates, and analytics, ensuring a smooth operation across all your screens.
Q. Can digital signage software be used for multiple locations?
Yes, L Squared's software is cloud-based, allowing centralized control over multiple locations. You can manage, update, and schedule content remotely, ensuring consistency across different sites. For instance, Lenovo partnered with L Squared to implement a centralized system that allowed them to update the same content across various locations, seamlessly.
Q. How much does digital signage software cost?
The cost varies depending on factors like subscription licenses, contract duration, and add-on services. Buyers should also factor in the total cost of ownership (TCO), which includes hardware, maintenance, and operational expenses, not just the software cost.
