In many electronic information displays, a colour pixel comprises three spatially distinct sub‐pixels containing red, green and blue (RGB) colour filters. The option of adding a fourth white (W) sub‐pixel that allows light to pass through unfiltered can significantly improve the optical efficiency of the pixel that, in turn, increases the power efficiency of the display. Such a display is called an RGBW display, and the required transformation of data format from incoming RGB to pixel RGBW is termed as “RGB to RGBW conversion.” This paper reports a method of RGB to RGBW conversion that is highly compact and efficient in terms of system resources while retaining image quality. It processes incoming data through a new colour space conversion algorithm in order to reduce the average power consumption with no noticeable visual artefacts. We explain the method and demonstrate its cost‐effective and power‐effective implementation for the specific case of an organic light emitting diode microdisplay.