Everything is an ad network. Even…automobiles?
In February, a Reddit post from a Jeep owner showing their car’s center console screen transformed into a digital billboard promoting an extended warranty went viral. In reports, a Jeep spokesperson called the pop-up ad a “temporary software glitch,” but the attempt to show ads on any screen available seemed entirely believable.
Glitch or not, some automakers are already following in the footsteps of brands ranging from grocery stores to financial institutions in their efforts to sell ads to captive—and, in the case of cars, trapped in transit—audiences.
In September, Ford filed a patent application for tech that would transform the center console into an ad network capable of selling ads based on vehicle location, destination, and “user preferences.” Filing a patent application, of course, does not necessarily reflect a company’s intent to use the tech in its products.
Retail media experts have said they would not be surprised to see automakers eventually serving ads. “Before the end of June, we are going to see an auto manufacturer announce their media network,” Sean Cheyney, head of retail media at Vistar Media, told Adweek in January.
“Most cars now are connected, so auto manufacturers are going to be trying to figure out how to tie it all in without annoying their customer base, and do it in a way that is engaging,” Cheyney said at the time.
Get marketing news you'll actually want to read
Marketing Brew informs marketing pros of the latest on brand strategy, social media, and ad tech via our weekday newsletter, virtual events, marketing conferences, and digital guides.
Drive my car: Retail media networks are a booming industry and are expected to reach $166 billion by 2025, and responsible for 20% of all digital media spend this year, according to eMarketer. The broader connected vehicle services market, meanwhile, is expected to grow to more than $473 million globally this year, according to data from the consulting firm AlixPartners cited by Wired, which could make up more than a 10% of total automobile revenue.
Since automobile companies are already collecting (and in some instances, selling) their customers’ data to parties like insurance companies, selling advertisements seems like the next logical step. Advertisers can already reach drivers through the radio, and voice-activated features that may eventually mean more targetable ads arrive through the speakers. Meanwhile, ads have already become even more ubiquitous in the backs of taxis and ride-hailing cars.
Those ride-hailing apps themselves are also pushing into the ads business. Uber’s ad business that it rolled out in 2021 was already expected to surpass $1 billion in ad revenue last year, the company previously forecast.