The new department will be headed by Jez Jowett, Cake's new-media director, alongside Terry McCusker, the agency's mobile marketing manager, who Cake recently hired from the wireless marketing specialist Buongiorno UK.
Using the technological know-how of its strategic partner Flix, Cake will offer new wireless solutions, such as branded content for mobile phones and interactive downloads, to a client list that includes Orange, Nintendo, Unilever, Carling and Reebok.
Cake has already experienced demand for mobile marketing from its existing clients. It has produced mobile campaigns to support ITV's Formula One coverage, the Channel 4 comedy A Bear's Tale and the deodorant brand Axe.
Jowett said: "The media landscape has gone digital. Consumers and brands are seriously excited about mobile and its possibilities to entertain and engage. We have spent 18 months with Flix developing our mobile solution. With Flix providing technical and video distribution and the right team in place, we are excited about launching brand entertainment down phones."