Narrowcasting has traditionally been understood as the dissemination of information (usually by radio or television) to a narrow audience, not to the general public. Some forms of narrowcasting involve directional signals or use of encryption. In the context of out-of-home advertising, this term often refers to the display of content on a digital signage network.

Narrowcasting involves aiming media messages at specific segments of the public defined by values, preferences, or demographic attributes. Also called niche marketing or target marketing. Narrowcasting is based on the idea that mass audiences do not exist.Flera, Aguie. Mass Media Communication in Canada. Thompson Nelson. Scarborough: 2003. p. 379

Narrowcasting is also sometimes applied to podcasting, since the audience for a podcast is often specific and sharply defined.

Narrowcasting is a form of broadcasting, if the latter term is understood as the "wide dissemination of content through mechanical or electronic media" as defined by Dr. Jonathan Sterne of McGill University.

Marketing experts are often interested in narrowcast media, since access to such content implies exposure to a specific and clearly defined prospective consumer audience.

Interactive Narrowcasting

A new type of narrowcasting is evolving in the form of interactive narrowcasting. Interactive narrowcasting enables shoppers to influence the content displayed via narrowcasting. One way of doing this is via a touch screen. More and more systems like 'ASIST interactive narrowcasting' are being introduced into the narrrowcasting market. These systems enable brands to communicate (two ways) with their shoppers via a interactive computer. The majority of these systems is located near or in between the products and is smaller in size. Also the content that is offered to shopper differs from 'classic' narrowcasting content. Interactive narrowcasting content is more informative and in many cases is meant to replace store personnel. A good example of a future interactive narrowcasting computer is the compact ASIST . Another advantage of the majority of interactive narrowcasting projects is that they are more effective and less cost absorbing overtime.

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