A novel method for driving a display device includes the steps of receiving video data of a first type, converting the video data to data of a second type, dithering the data of the second type to form dithered pixel data, and outputting the dithered pixel data. The step of converting the video data to data of a second type includes inserting dither bits indicative of a particular dithering scheme into the data of the second type. An example display driver circuit includes an input for receiving video data, a data converter coupled to receive the video data and operative to convert the video data into pixel data to be written to pixels of a display, and a ditherer operative to receive the pixel data and to dither the pixel data to generate dithered pixel data. The video data is data of a first type, and the pixel data is data of a second type, different from the first type. In the disclosed example, the first type of data includes a binary data word, and the second type of data includes a compound data word. The compound data word includes a first set of binary weighted bits, a second set of arbitrarily weighted bits, and dither bits.