I think this a fine way for Frontier to earn income.
As long as it's unobtrusive and fits in the game world.
In-game advertising can do much better in funding the game, rather than making a carnivore machine that must extract from it's players by micro-transactions of game assets that upsets the actual game play world.
Taking up 1/4-1/3 of my television screen while I am watching a show by some network advertising their show, like is becoming popularly obtrusive today, well then No Way.
It can be fun...In the Superbowl kind of fun commercial mentality.
A sign coming into a station can be fun, a bulletin board, etc.
If McDonald's want to say "Over 1.5 billion star systems served", than I am all for it (paying Frontier for every player ship that enters that station). If Pepsi wants to expose Coke execs by saying "In 3251 it was uncovered that Coke executives came here to this pirate station to drink 'Pepsi Alpha Red One' because they couldn't find the real thing in their system", then I'm all for it.
So many worse nefarious things could happen that would truly negatively affect the game to pay their staff, server and bandwith bills...cheapening the game for console success, subscriptions, microtransactions of game assets, Pay For Advantage, etc...
Fake advertising brings life to a game universe, making the billboard real, fun, is no big deal. As long as it is easy to also ignore.