Newsweek has an interesting article about Facebook's "problem" with advertising expectations. If the ads are too targeted, people freak out about privacy; to vague and people don't care:
That's why "paid search" advertising accounts for 41.8 percent of all online ad spending, according to eMarketer. It's also why Facebook is struggling. Avenue A/ Razorfish, a leading online ad agency, bought online ads worth $735 million last year, but only $55 million-a mere 7 percent-went to social-networking sites like Facebook, MySpace and others. Jeff Lanctot, chief strategy officer at Avenue A/ Razorfish, sees Facebook as a communication tool, akin to e-mail or instant messaging. Those are useful things but not great vehicles for running advertisements. Facebook, Lanctot says, has been "a victim of unrealistic expectations." (Facebook would not provide anyone who would talk on the record for this article.)
check out the whole article here.