I used to do a lot of designing for Daktronics signs. The client definitely needs to know the correct viewing distance initially in order to give fair judgements of these very low res videos/animations. They always seem to think they are watching a big TV and that the resolution should be the same. But viewing them from across the street (or wherever your sign is) really helps.
As far as comp design, definitely always use the exact pixel ratio, because that will be the best for their system that plays the videos which is pretty rudimentary.