Di$tract€d driving: The rise of in-car ads

The modern car can parallel park itself, power a house during a blackout, pick its driver up from a parking lot, and remotely control a PlayStation 5. So does it really come as a surprise that it might also try to earn a little commission on selling you a sandwich?

Cars, like many other functional utilities now decked out with large connected screens, are quickly becoming an advertising gold mine.

That potential revenue is leading automakers to test the controversial addition of in-car ads — and likely playing into the growing wave of automakers scrapping popular phone-mirroring systems like Apple CarPlay and Android Auto from their models.

In-car ads appear pretty subtle, for the most part — an in-map suggestion that a Dunkin’ Donuts is nearby on an early morning commute, or a gas station promotion on the infotainment screen when the tank is nearing empty — but as vehicles become more sophisticated, their ads do, too.

German-based driver interaction platform 4screen is at the forefront of the in-car ad industry. Partnered with 16 vehicle brands, including Stellantis, Toyota, Volkswagen, and Mercedes, 4screen says its technology works on all infotainment systems (including Apple CarPlay and Android Auto).

The company is operational in a dozen countries, having launched in the US in 2024. The majority of 4screen’s marketing is currently geared toward utility: EV charging locations, supermarkets, or after-sale verticals like maintenance suggestions. Ads, CEO Fabian Beste says, are an obvious next step for today’s cars. Currently, 4screen says its ads result in a 3% to 7% boost to its cars parking at advertised locations.

The Takeaway

Ford has filed multiple patents for in-car advertising systems in recent years. One would use a car’s cameras to read nearby billboards and display similar ads on its infotainment screen; another could listen to conversations in the car, parsing for relevant key words. Statista estimates there are 400 million “connected cars” currently on roads worldwide. The Center of Automotive Management, a German research institute, estimates “in-car e-commerce” revenues could reach between $100 and $120 per car, per year by 2030, creating an addressable market worth more than $50 billion.