Annual advertising spend on mobile channels will reach $11bn (£7bn) by 2015, up from $3.1bn this year, as brands embrace in-app advertising.

That’s the conclusion of the Mobile Advertising Strategies report from Juniper Research, which finds that, in the wake of the surge in app downloads engendered by Apples App Store and other storefront launches, brands are seeking either to offer dynamic advertising in-app, or – as with Barclaycard and Volkswagen – to create their own apps with the aim of increasing brand exposure and engagement. Elsewhere, advertisers such as Starbucks and LOreal 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.

The report cautions, however, that brands risk ignoring other, more established mobile distribution channels at their peril. “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,” says report author, Dr Windsor Holden. In many instances, a simple, interactive, opt-in SMS-based campaign might be far more effective.”