The LED "Evolution" advertising screens will be installed on 100 buses in New York in October and will be fitted with GPS technology powered by Litelogic software that adjusts the display to reflect its location.
For example, the system would be capable of running an ad for high-end retailer Macy's while outside a rival Bloomingdales location, or change advertising to promote restaurants in the area.
Some advertisers already signed up to appear on buses in New York and Chicago include Coca-Cola, Sprite, mattress maker Sleepy's, Dunkin Donuts and Oreos.
By the year's end it is expected that numbers will increase from an initial 100 buses to a total of 300, with 200 deployed in New York and the remaining in Chicago. Litelogic has fitted 25 buses in London with the Evolution screens.
James Burrows, group CEO of Litelogic, said: "This Evolution Bus deployment represents a milestone for Litelogic and we are delighted to be in partnership with Titan Worldwide in this venture.
"The challenge for the team was to develop high resolution digital display screens that would not only work on the side of various bus models, but also meet Titan's world-class performance criteria."