In-car adverts reportedly boost brand recognition by three times, according to LeadStory's claims
In the rapidly evolving world of digital media, the in-car advertising landscape is experiencing significant growth and transformation. According to industry experts, the market for in-vehicle apps, including advertising platforms, is projected to expand from USD 68.2 billion in 2025 to a staggering USD 160 billion by 2035, largely fueled by AI-driven infotainment and connected car services.
LeadStory's CEO, Cam Price, asserted that the in-car consumer is more engaged than almost any other content ecosystem. This engagement is achieved through granular segmentation, lookalike modeling based on first-party data, and real-time ad eligibility, which allows for the delivery of highly personalized and relevant messages, improving engagement and reducing wasted spend. Multi-touch attribution is also increasingly used to track and measure user interactions across multiple channels and touchpoints within automotive digital ecosystems, enhancing understanding of customer journeys and marketing ROI.
However, safety concerns remain a critical industry focus. While in-car advertising interfaces are evolving to prioritize minimal distraction through voice activation, non-intrusive visuals, and context-aware delivery that limits ads to safe moments during vehicle operation, the potential for distractions cannot be entirely eliminated. The argument that pop-up ads in cars can be dangerous is being challenged due to the increasing resemblance of in-car screens to smartphones and tablets.
Data privacy is another growing concern in in-car advertising. Analytics-driven personalization requires careful handling of sensitive user data collected from vehicle sensors and infotainment systems. Industry efforts are focused on real-time suppression techniques to avoid overexposing users to ads once conversion is detected, which also reflects a privacy-conscious approach to audience management. Regulatory frameworks and consumer awareness around privacy mandate transparency and secure data processing, though specific regulations as of 2025 are not detailed in the search results.
The integration of digital media in cars raises concerns about data privacy, particularly in a space where consumers may not expect it. Brands are treading carefully, ensuring they comply with evolving standards and maintain consumer trust. For instance, 4screen's technology, integrated across 15 global auto brands, is focused on providing a seamless and non-disruptive user experience while delivering targeted ads.
In addition to these developments, automakers are increasingly introducing a content experience to the car, providing brands with new opportunities for advertising. Mercedes-Benz has partnered with Microsoft to bring Teams Meetings to its vehicles, while Ford plans to introduce in-car ads and listen to drivers' conversations, using location and speed data to serve targeted ads.
However, not all drivers are welcoming these changes. Jeep drivers have been complaining about pop-up ads showing up on their screens since 2023, with some posting photos of the ads on Reddit, calling them 'annoying', 'intrusive', and 'unsafe'. Tesla offers a range of entertainment options, but many are only available while the vehicle is parked.
Brand Metrics and AI-powered news streaming platform LeadStory recently released findings from a study on in-car advertising, which showed that ads promoting SAP Software Solutions showed on drivers' screens within LeadStory's content, resulting in brand uplift three times higher than Brand Metrics' global benchmark scores.
In conclusion, the in-car advertising landscape in 2025 is marked by intelligent engagement strategies powered by AI, an expanding app ecosystem, growing attention to ensure ads do not compromise driver safety, and rising emphasis on protecting user data and privacy to maintain consumer trust and comply with evolving standards. As the industry continues to evolve, it will be interesting to see how consumer attitudes and expectations shape the future of in-car advertising.
- The in-car advertising landscape is notably influenced by the expansion and transformation of the digital media industry, with the market for in-vehicle apps, including advertising platforms, predicted to surge from USD 68.2 billion in 2025 to USD 160 billion by 2035.
- Brand Metrics, a company focused on measuring advertising effectiveness, recently revealed that ads promoting SAP Software Solutions showed on drivers' screens within their content, resulting in brand uplift three times higher than their global benchmark scores.
- Safety concerns persist in the in-car advertising industry, with the potential for distractions a critical industry focus, despite efforts to prioritize minimal distraction through voice activation and context-aware delivery.
- Data privacy is another significant concern in the in-car advertising industry, with brands striving to ensure compliance with evolving standards and maintain consumer trust, while carefully handling sensitive user data collected from vehicle sensors and infotainment systems.
- Automakers are introducing content experiences to vehicles, providing brands with new opportunities for advertising, such as Mercedes-Benz partnering with Microsoft to bring Teams Meetings to their vehicles and Ford planning to introduce in-car ads that listen to drivers' conversations using location and speed data.
