Recently, Deepal Automobile sparked widespread public concern after pushing in-vehicle startup advertisements without explicit user authorization, triggering collective complaints from car owners. The incident quickly escalated, placing in-vehicle advertising—its business model, legal compliance, and impact on user experience—under renewed scrutiny.
In an interview with Fengkou Finance, SHINDEV noted that in-vehicle advertising is not merely a form of traffic monetization. Rather, it reflects deeper structural challenges stemming from the still-evolving commercial model of intelligent vehicles. While the market potential is rapidly approaching hundreds of billions of yuan, legal compliance and user experience remain the most significant constraints at present.
From a commercial perspective, SHINDEV’s analysis indicates that the core value of in-vehicle advertising lies in its highly contextualized and precise reach. Unlike mobile advertising, in-vehicle systems can integrate real-time vehicle data—such as location, battery status, and maintenance cycles—to dynamically match advertising content with immediate user needs.
For example, low battery alerts can trigger charging station promotions, while proximity to commercial districts can prompt dining recommendations. Industry estimates suggest that conversion rates for in-vehicle advertising can be more than three times higher than those of mobile platforms.
In terms of market scale, in-vehicle startup ads generate an estimated RMB 15–30 CPM. Assuming 10 million connected vehicles with two daily impressions, direct annual advertising revenue could exceed RMB 200 million, while indirect revenue—including data monetization and after-sales services—could reach RMB 5 billion. As smart vehicle penetration continues to rise, long-term commercial value is widely expected to surpass the hundred-billion-yuan threshold.
SHINDEV emphasizes that controversies surrounding in-vehicle advertising are not unique to China. International players have demonstrated alternative approaches through technological and structural innovation:
Uber JourneyTV displays 15–90 second ads in New York ride-hailing vehicles, allowing users to mute or close them. Content is dynamically adjusted by location and time, achieving an ad completion rate of 98%.
Ford’s AI Advertising Patents leverage natural language processing and computer vision to identify driving scenarios and deliver relevant service-based ads, with 25% of revenue shared with drivers.
Li Auto’s task-based model allows users to voluntarily watch short ads in exchange for reward points redeemable for products or services, with a participation rate of approximately 34%.
These cases demonstrate that user tolerance is driven by control and benefit-sharing. When advertising evolves from disruption into service, commercialization and user experience can coexist.
The Deepal incident highlights persistent compliance gaps within the industry. SHINDEV identifies two major risk areas:
Legal Compliance Risks
Some in-vehicle advertisements lack clear and prominent “one-click close” functions, potentially violating advertising and consumer protection regulations. In addition, insufficient disclosure of advertising terms and data usage in purchase contracts increases the risk of consumer disputes.
Driving Safety Risks
Studies show that a one-second shift in driver attention can triple accident probability, while pop-up ads may significantly reduce driver focus. In 2024, complaints related to in-vehicle advertising surged 210% year-on-year, making it the second-largest automotive consumer rights issue after battery safety.
To achieve sustainable development, SHINDEV recommends restructuring in-vehicle advertising around three core pillars:
Technology
Transition from intrusive pop-ups to contextual service information, leveraging LBS and vehicle status data to deliver relevant, low-distraction content.
Mechanisms
Grant users full control, including default-off settings, skip options, and preference customization, while exploring revenue-sharing models that return a portion of ad income to users or drivers.
Regulation and Standards
Promote industry-wide standards to define clear boundaries, including:
Prohibiting advertisements from appearing while the vehicle is in motion;
Banning ad targeting without explicit user consent;
Establishing transparent revenue-sharing frameworks to protect user interests.
SHINDEV concludes that the debate over in-vehicle advertising is fundamentally a litmus test for the maturity of intelligent vehicle business models. While forced advertising may deliver short-term gains, the long-term costs of eroded brand trust and user attrition are far greater.
Only by embedding advertising within service ecosystems and establishing user-driven value exchange mechanisms can the industry unlock the true potential of this emerging hundred-billion-yuan market and achieve sustainable growth.
