Mobile ad spend increased 157% in 2011 to a record £203.2m, according to the IAB and PricewaterhouseCooper (PwC).
With smartphone ownership now standing at 53% in the UK, the IAB attributes the growth to the rapid uptake of apps and social media, fuelled in part by cheaper tariffs.
Consumer use of smartphones and strong tablet sales has sparked a surge in interest from brands, particularly in the retail, technology and FMCG sectors.
The report also states that 51% of Britons now use a mobile device while watching TV, causing advertisers to create more engaging and interactive rich media ads.
O2 Media MD Claire Valoti said the study reflects the confidence in the marketplace that brands and media agencies have around mobile.