But hasn't it been shown that simple, relevantly-tagetted text ads like Google Ads have been shown to be very effective? These hardly use any screen estate, and the screens on most portable 'smart' devices are actually getting quite large and hi-res and can display quite a lot compared to mobiles of old.
Also, ads that use recognisable, simple, company logos would work on these devices - think 'brought to you by AT&T' with their nifty death-star icon tucked somewhere unobtrusive.
I don't think it's undo-able - I reckon it just needs a bit of a paradigm-shift in thinking and design away from how things are done on the Web, which is only really now becoming anything like a 'mature' market.