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What Is a DSP? Full Breakdown

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Digital signage has a CAGR or compound annual growth rate of 3 times greater than the US economy. Get the full breakdown on what is a dsp below.

Before a business considers using this effective form of advertising, they must understand how it works and how it’s made.

DSP is the most popular way to create digital signage, but it’s not something everyone is familiar with. Businesses may be left wondering what is DSP and how can it help my business?

Read our DSP technology guide to get the answer to all of these questions and more.

What Is a DSP?

It’s important to know what is DSP and how it works before implementing it in your business.

What does DSP stand for? It’s an anagram for digital signage process, referring to the way digital signage is created.

What does DSP mean? To answer that question, it’s important to first understand what digital signage is.

Digital signage typically uses a combination of hardware and software to display messages. Screens display the images, speakers play the audio, and software allows for easy customization and message-switching from a computer.

DSP is the process of creating digital signage, from the initial planning stages to the final installation. It allows businesses to automate the spread of their messages, set up signage in multiple areas at once, and quickly change content when it gets stale.


Understanding what DSP stands for and what it does is not all you need to know to implement it properly. You also have to understand the components that make it up and how they work.

Almost anything digital is made of two major types of components. There’s hardware, the physical parts like cables and motherboards, and software, the programs that are designed to help the hardware do its job. This is true of DSP technology, and there are different components for each side.

The four major software components of DSP technology relate to media players, content management and distribution, device management, and content creation. The necessary hardware components include screens or projectors, mounts, and networking components like cables, WiFi, or cloud services.

The installation process involves setting up the hardware and synchronizing it with software. This includes purchasing the necessary components, site surveys, inventory preparation, monitoring, and physical installation.

A successful installation requires getting the best components possible, which makes it important to understand the different types and what they do.


There are almost as many types of DSP technology as there are types of traditional signage. Posters, billboards, billboards, menus, and more can all be digitized.

There are three main ways digital signage is used. It can be applied at the point of sale just before a customer buys an item, at the point of transit where a viewer is traveling somewhere, or at the point of wait where the customer is waiting for a product or service.

Choosing the best type of digital signage for your business is an essential component of DSP. They all offer various benefits, but choosing the best one for your individual needs is the best way to create the most effective campaign possible.


Digital signage is everywhere in the modern world. From digital menus in restaurants to billboards with rotating images, DSP technology is revolutionizing the advertising industry.

There are as many uses for digital signage as there are different types. While any business can benefit from it, there are certain types of campaigns that are especially suited to DSP technology.

Digital signage works well for messages that require a wide spread. It can be set up in locations far from each other, and the content can be changed in an instant from a remote computer.

Digital signage is also perfect for cross-promoting multiple products at the same time. Different but related content can be displayed and/or rotated on separate screens in the same location.


There are various benefits of DSP technology. It can increase customer awareness of a product or service, save on printing costs, and more.

Other benefits exist as well. Many businesses see a higher return on investment or ROI from digital signage.

Digital signage is easy to make interactive, creating a more memorable user experience. The content is also more likely to stay in the viewers’ minds as they pass it every day.


Despite the benefits, DSP technology is still an investment. It’s important to know what digital signage will cost your business in the long run.

The hard costs of digital signage include content creation, network management, and equipment such as software and screens.

Other costs exist, such as repairs if a component stops working, salaries for employees that create the content and install the technology. Budgeting is a necessary part of the planning process, and it’s important to know how much the campaign will cost up-front to avoid overspending.

How to Use a DSP

One of the most important considerations is the purpose of your campaign. Should the digital signage inform the public or is it meant to also lead them to buy something?

Another important decision is the type of digital signage to use. As previously mentioned, there are plenty of different options, and it’s important to find the best fit for your business.

Even the best-laid plans will fail if they’re not executed properly, and this applies to digital signage as well. Get the best equipment you can, ensuring that it can display your message effectively and won’t break or overheat. Have a professional install it and test it before releasing it to the public.

There are other things to consider before making a digital signage campaign. Determine the necessary number of screens, set up a budget and a timeline, and decide what content to display.

For more tips on how to create the best campaigns possible for the least amount of money, check out our 9 tips from media buyers and 8 media buying mistakes you must avoid.

Future Trends

Technology constantly changes, and it’s essential to stay up on the latest developments and trends. There are various modern changes and developments in the field of DSP technology to be aware of.

Indoor vs. Outdoor

One of the best parts of DSP technology is that it can be installed practically anywhere.

Most digital signs are placed outdoors to lure people into the business, but indoor digital signage is a growing form of DSP communication. It improves user experience, allows for the use of AR, and more.


Almost any type of screen will work when creating digital signage, but it’s important to choose the best one for your needs. LCD and LED are the two most common options.

LED screens are expected to take a larger share of the market than their LCD counterparts. They work best for large-scale campaigns placed outdoors, which is still one of the most common forms of digital signage.

Software vs. Hardware

Apple TV is becoming a major player in the hardware industry for DSP technology. This leaves a wide opening for future developments in software.

There are already plenty of software options to choose from, but there is always room for improvement. New companies are likely to keep coming out with more innovative, easier to use DSP software.

Rise of AR

Augmented reality or AR places images on a screen to make it feel like they are being projected into the real world for the user to interact with.

AR began in the gaming industry but is spreading to the rest of the business world. It can allow a business to create a customer experience that stands out, differentiating them from their competitors. That’s why its usage should only be expected to grow in the coming years.

Growing Industries and Locations

The transportation and retail industries are expected to increase their usage of DSP technology. It provides a host of benefits to both.

Retailers can use solutions like digital shelves and booking screens for ease of use and increased conversions. Transportation services that already place a large number of advertisements can do so faster and cheaper with digital signage.

These are just a few of the industries that are expected to rapidly adopt DSP technology. Banks and government institutions are slowly catching on to it, and any industry can benefit from the affordable, easy-to-use advertising it provides.

America is the current leader in digital signage, but technologically advanced regions like Europe and Asia are likely to increase their usage to keep up.

Why Choose a DSP

The answer to the question of what is DSP is not as complex as it may seem. It stands for digital signage process and refers to the way digital signage is created.

Planning an effective digital signage campaign is a matter of knowledge and preparation. It requires knowing the DSP inside and out, from the components that make it up to the different types and potential costs and benefits. It also means examining the needs of your business to decide on the right content and technology.

DSP can be a technically complex process, and it helps to have a professional to guide your business through each step.

We offer effective advertising solutions for every business. Check out our pricing options today.

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