Automatic label placement, sometimes called text placement or name placement, comprises the computer methods of placing labels automatically on a map or chart. This is related to the typographic design of such labels.
The typical features depicted on a geographic map are line features (e.g. roads), area features (countries, parcels, forests, lakes, etc.), and point features (villages, cities, etc.). In addition to depicting the map's features in a geographically accurate manner, it is of critical importance to place the names that identify these features, in a way that the reader knows instantly which name describes which feature.
Automatic text placement is one of the most difficult, complex, and time-consuming problems in mapmaking and GIS (Geographic Information System). Other kinds of computer-generated graphics – like charts, graphs etc. – require good placement of labels as well, not to mention engineering drawings, and professional programs which produce these drawings and charts, like spreadsheets (e.g. Microsoft Excel) or computational software programs (e.g. Mathematica).
Naively placed labels overlap excessively, resulting in a map that is difficult or even impossible to read. Therefore, a GIS must allow a few possible placements of each label, and often also an option of resizing, rotating, or even removing (suppressing) the label. Then, it selects a set of placements that results in the least overlap, and has other desirable properties. For all but the most trivial setups, the problem is NP-hard.
Rule-based algorithms try to emulate an experienced human cartographer. Over centuries, cartographers have developed the art of mapmaking and label placement. For example, an experienced cartographer repeats road names several times for long roads, instead of placing them once, or in the case of Ocean City depicted by a point very close to the shore, the cartographer would place the label "Ocean City" over the water to emphasize that it is a coastal town.
Cartographers work based on accepted conventions and rules and they place labels in order of importance. For example, New York City, Vienna, Berlin, Paris, or Tokyo must show up on country maps because they are high-priority labels. Once those are placed, the cartographer places the next most important class of labels, for example major roads, rivers, and other large cities. In every step they ensure that (1) the text is placed in a way that the reader easily associates it with the feature, and (2) the label does not overlap with those already placed on the map.