TBG Digital, a leading Facebook Inc (NASDAQ:FB) focused advertising agency, is constructive on the company’s future. According to a report from Bank of America, TBG, whose client list, which includes the big names like Ford Motor Company (NYSE:F), Capital One Financial Corp. (NYSE:COF), The Procter & Gamble Company (NYSE:PG), and Neftlix, Inc. (NASDAQ:NFLX), has experienced a positive ROI in proportion to their targets as “some advertisers targeting visits to FB pages or “likes”, others targeting off FB purchases or subscriptions.” The advertising agency asserted that mobile product development and monetization of sponsored story ad format on mobile devices are the main focus for Facebook currently.

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As per the report from BOA, TBG which allocates $200mn+ in annual social media spending is most optimistic on demand for “Sponsored Story mobile inventory” and “the pricing uplift opportunity” from Facebook Inc (NASDAQ:FB)’s ad exchange, among the many new ad formats introduced by the company. Though the advertising agency believes that mobile revenues may eat away some revenue from PC spending, it expects the social networker to post a double digit quarterly growth in the client’s ad spending for the coming quarters.

TBG’s double digit growth expectation for Facebook Inc (NASDAQ:FB)’s spending is higher than the 7 percent spending growth estimate by BOA, and a general perception of around 4 percent. For the fourth quarter, TBG expects a growth of 20 percent in the client spending, against the 19 percent quarterly growth estimates by BOA. The TBG growth numbers are backed by “very big commercial business actively investigating how much to switch away from TV to Social” and also a big spending in the fourth quarter from US political advertising, which is expected to shift from traditional advertising platforms and invest “incremental retail dollars to the Internet.”

Commenting on each of the recent ad formats introduced by Facebook Inc (NASDAQ:FB), TBG said, ‘Sponsored Stories’ ads provide higher ROI. On ‘Ad Exchange’, the agency remarked that though the inventory is limited, it could drive higher pricing. TGB views ‘Promoted Posts’ to be more focused on small and medium sized businesses. Expressing concerns on ‘Facebook Offers’, the agency suggested it “should be renamed and needs strong compliance monitoring for consumers and businesses, as coupon redemption has been a problem.” According to TBG ‘Sponsored Results’ does not enjoy the same traction as other ad formats, as “users are not searching for brands in a similar manner to how they search on Google.”

For the third quarter, TBG’s total mobile ad budget for FB is only about 5 percent, but in the long run, it is expected to grow to over 50 percent of ad spending. However, the report from BOA considers ‘FB inventory limitations’ and ‘possible cannibalization of desktop spend’ to be a major issue that requires some fixing from the company side.

TBG considers ‘FB Ad Exchange’ a big opportunity for the company. As of now, Facebook Inc (NASDAQ:FB) restricts exchange inventory to one ad per page, but the report expects around 50 percent of the ads “could be served from the exchange in the future.” Report is optimistic on the potential growth of Facebook’s annual ad revenues per user, which is currently at $4.40, against $6.30 for Yahoo! Inc. (NASDAQ:YHOO). However, the report expresses concern over “limited visibility on the impact of the user transition to mobile devices and mobile advertising revenue trends.”