Even though Facebook has grown about 10% each month since September, they are only looking to make around $300 million in ad revenue for 2008, small in comparison to MySpace’s $1 billion.  But Facebook’s focus has never been on advertising, they always focused on gaining users.

The problem that Facebook is facing is that their site is built for users, so marketers can build and promote their business page without buying any advertising.  In attempt to make some more money, Facebook has started rolling out “engagement ads” that advertisers pay for. Unfortunately, the results of these ads are being highly scrutinized and the budget for these types of ads are being cut.

Facebook believes in its applications because the original purpose of the website was a communications tool and platform for new applications, not blatant advertising.  The company is hopefully that marketers will see how the Facebook community positively responds to ads that aren’t so in-their-face.

For the full article, go to: http://adage.com/digital/article?article_id=134239

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