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Wrap advertising or a vehicle wrap describe the marketing practice of completely or partially covering (wrapping a vehicle in an advertisement or livery. The result of this process is essentially a mobile billboard. Wrap advertising can be achieved by painting a vehicle's outer surface, but an increasingly ubiquitous practice in the 21st century involves the use of large vinyl sheets as "decals". The vinyl sheets can later be removed with relative ease, drastically reducing the costs associated with changing advertisements. While vehicles with large, flat surfaces (such as buses and light-rail carriages) are often used, automobiles can also serve as hosts for wrap advertising, despite consisting of more curved surfaces. Wrap advertising is also used in the magazine and publishing industries.
Until the age of the automobile, train companies were the largest industry to paint company names and logos for distinction on their locomotives and railcars.
The first attempts at using the plastic in commercial applications failed as a result of being too fragile. In 1926, Semon invented the vinyl still used today by introducing additives to PVC that made it flexible and easier to process.
A large milestone in the shift from small production vinyl lettering to a full vehicle vinyl color change took place in Germany in 1993 when the vinyl manufacturer Kay Premium Marking Films (KPMF) was asked to produce a film to be used in place of paint for the purpose of converting cars into taxis. At this time, German taxi companies were required by law to paint their fleets in a government mandated color, beige. KMPF provided an alternative to painting, which allowed taxi companies to bring a large fleet of vehicles into compliance with German law while maintaining the future resale value of the vehicle. Prior to this point, decommissioned taxis were heavily discounted or had to be completely repainted. With the use of vinyl vehicle wraps there was no need to repaint them or discount them as the vinyl could be removed without damaging the paint underneath. KPMF documented after 3 years of taxi service was complete, the vinyl was removed leaving a pristine and unscratched paint surface.
The first commercial advertisement vehicle wrap is thought to have been created for Pepsi Co in 1993, which used vinyl to wrap a bus promoting its Crystal Pepsi product. It wasn't long before bus wrap advertising was everywhere and the new form of vehicle graphics trickled down to smaller businesses and consumers. Wrapping whole vehicles was still challenging. Majority of the difficulties came from premature adhesion and air bubbles under the vinyl. As technology improved, companies like Avery Dennison, 3M and Oracal developed the use of air-channels that made the vinyl repositionable and allowed for bubble-free installation. Air-channel, created using microscopic glass beads incorporated into the vinyl's adhesive, prevented the vinyl from fully sticking to the substrates surface thereby permitting air flow between adjacent sections. In addition, these beads allow for the vinyl to be repeatedly be removed and reapplied until the beads are broken by firmly pressing the vinyl using a small hard squeegee. Once the beads are broken the vinyl will be firmly adhered to the substrates surface. Proprietary company blends of polymer in the vinyl allowed the material to conform to compound curves, recesses, and corrugations through the use of heat guns and torches. 
Advancements in plastics have led to new types of vinyl designed specifically for wrap advertising, including vinyl sheets that feature bubble-preventing air channels. Microscopic glass beads are used to prevent an adhesive from functioning until the user is ready (the beads allow the material to be repeatedly lifted and reapplied during the wrapping process, without compromising the longevity of the wrap). The vinyl is heated with a heat gun or torch for the purpose of molding the material around objects.
Decals can be made to cover side and rear windows on a vehicle, but for safety reasons, the front windows used by the driver are not covered. The decals on side windows are typically perforated, so that it is still possible for passengers to look outside. This See-through graphic technology originated in the 1980s, with the first dominant patent registered by a British company called Contra Vision.
Calendered vinyl film or Calendered vinyl sheeting, is manufactured by mixing powdered PVC, liquid softener and coloring agent into a molten dough-like mixture. The mixture is then extruded through a die, and pressed into an increasingly thin sheet using a series of hard pressure rollers, called calendering rolls. When the material reaches the calendaring rolls, it passes through a series of decreasing gaps, which, in turn, increases the temperature and uniformity of the mixture. After each pass, the film becomes thinner and wider until the material is formed into a thin sheet of vinyl. The vinyl is then cooled, wound, and later coated with adhesive.
While vinyl wrapping can temporarily protect a car's paint job from superficial damages, like sun fading and scratching, it does not provide any additional protection against physical impacts (dings or dents) that can cause the paint to chip. Damages can occur to the underlying paint, particularly if it is not properly cured before adhesives and/or vinyl wrap is applied. If a vehicle is repainted prior to installing a vinyl wrap, the paint must cure to manufactures specifications before a vinyl wrap can be applied safely. Failure to wait for the paint manufacturer's cure time may result in paint or clear coat damage when the vinyl wrap is removed from the vehicle's surface.
A number of municipalities have introduced strict laws in order to mandate against mobile advertisements; this has partially been due to the fact that wrap advertisements are purposefully circulated throughout high-density areas. New York City is a notable example, where any sort of motorized advertisement is outlawed. Mobile billboards have been identified as a contributing factor in the city's already-problematic traffic congestion.
These wraps are similar in that a vinyl (although a cast vinyl sheet) is used to cover parts or hole vehicles in a new color or in a protective form of a color matching vinyl that matches an oem paint color. This Wikipedia article describes Color Change Wraps in more detail.
Paint Protection Films or PPF are clear and oem paint color match vinyl films designed to protect paint. Clear PPF allows the oem paint color to show through the protective vinyl and color matching vinyl films replicate the OEM color with a protective vinyl. This Wikipedia article describes PPF in more detail.