The research firm found that, in the wake of the surge in app downloads engendered by Apple’s App Store and other storefront launches, brands are seeking either to offer dynamic advertising in-app, or else - as with Barclaycard and Volkswagen - to create their own apps with the aim of increasing brand exposure and engagement.

Meanwhile, advertisers such as Starbucks and L’Oreal are making greater use of location-based campaigns, in which they geo-fence selected zones and to push messages to customers that enter those designated areas, said the research firm.

However, the research report cautioned that brands risked ignoring other, more established mobile distribution channels at their peril.

The research report finds increasing diversification within mobile ad networks is leading to the creation of dedicated premium/secondary premium networks and increasing role for ad exchanges.

Brands indicate that the mobile share of the digital budget will rise significantly in the medium term.

Ringback tone advertising is expected to become increasingly popular, primarily in developing/emerging markets.

Windsor Holden, author of the report, said: “While smartphone apps can be extremely effective at generating brand visibility, they are by no means the optimal means of reaching the target demographic for every product - or for engaging with that demographic. In many instances, a simple, interactive, opt-in SMS-based campaign might be far more effective.”

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