Variable message sign (VMS) is an effective traffic management tool for congestion mitigation. The VMS is primarily used as a means of providing factual travel information or genuine route guidance to travelers. However, this may be rendered sub-optimal on a network level by potential network paradoxes and lack of consideration for its cascading effect on the rest of the network. This paper focuses on the design of optimal display strategy of VMS in response to real-time traffic information and its coordination with other intelligent transportation systems such as signal control, in order to explore the full potential of real-time route guidance in combating congestion. We invoke the linear decision rule framework to design the optimal on-line VMS strategy, and test its effectiveness in conjunction with on-line signal control. A simulation case study is conducted on a real-world test network in China, which shows the advantage of the proposed adaptive VMS display strategy over genuine route guidance, as well as its synergies with on-line signal control for congestion mitigation.