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The matrix is a term for the amount of the grouping of pixels on you LED display. It is simply the number of pixels high by pixels wide of the viewing area of your display. This is NOT to be confused with external cabinet size and extremely important when comparing different product displays to insure you are getting accurate quoting.
A pixel is the term used to describe the grouping of red, green, and blue LEDs. The outdoor Real pixel group consists of 1 red, 1 green, and 1blue LED. The Virtual pixel consists of 2 red, 1 green, 1 blue LED. The Real pixel is the industry standard and the more economical of the two types of grouping. Though the Virtual pixel is more expensive the extra red LED adds better clarity and color to your display for the larger resolutions.
Resolution is another important factor in the decision process of which LED display is right for you. The resolution of a LED display is the distance between the groupings of the pixels. The larger the number of the resolution, such as a 20mm, the further apart the pixels in millimeters. The smaller the number of the resolution the closer the distance between pixels. The quality of the picture will increase as the number of the resolution decreases. In other words, a 10mm resolution will display a tighter, cleaner image than a 20mm resolution.
If your traffic base, for example, is going to view your display from a highway with a 200ft minimum distance then a 20mm may be best suited for your application. However, if the traffic base would constantly be within 50ft, a 10mm would be a better choice due to the cleaner resolution a 10mm display will provide.
Keep in mind that a small display such as a 3ft by 7ft has a limited content visibility in the larger resolutions and from 200ft plus in viewing distance, a small sign is hard to read.