­Consumer demand for mobile applications will wear down resistance to in-app mobile ads, propelling the North American market to $2 billion by the end of the year, according to a new report by Parks Associates. The report shows North American in-app ad revenue will surpass $860 million in 2014 and paid mobile app profits will exceed $4 billion.

“As appetites for mobile apps grow, consumers will become more accepting of in-app ads,” said Heather Way, research analyst, Parks Associates. “Our latest report shows 46% of adults 18-34 are either indifferent to in-app ads or willing to endure ads in free mobile apps.”

New digital technologies will give companies an edge with more creative and personalized advertisements. Parks Associates’ analysts say Apple’s iAd mobile advertising ad network is a good example of using novel and captivating ads to keep consumers engaged. The launch of this ad network has experienced early growing pains, with slow development and controversies over Apple’s control of the creation process, but at least one advertising partner, Nissan, has reported better engagement with its interactive ads.

“Right now, consumer demand for mobile devices and applications shows no sign of abating, and the big players are responding,” Way said. “Research In Motion (RIM) recently acquired Cellmania in order to expand the BlackBerry App World storefront, and we will see more acquisitions in this market as companies seek to enhance their offerings and their ad platforms.”