"Smile your on camera", look at this phrase, add some imagination too!!!

After looking at this sign, there are two different interpretation that strikes me.

1) smile = verb
your = you're = you (pronoun) are (verb) *perhaps a typo error here??? haha*
on = preposition
camera = noun

do you see the sign as "Smile, your (you are) on the camera"

2) smile = verb
your =possesive determiner
on = verb
camera = noun

now do u see it as smile at your on camera (a camera that is switched on)??

Please correct me if I am wrong:)

ceeteing