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FB has a fundamental problem in that there is no inherent value in the company vis-a-vis the advertising model. In fact, FB admits that its advertising marketing plan is still evolving ...

Consider the following scenario:

Unlike FB, Google does have inherent advertising value. I want to buy a widget, I search Google, and Google returns hits, along with paid advertising that concerns widgets. Google does not depend so much on personal information from me in order to do this. I generally do not mmind this, as I am looking for widgets anyway. 'Course, I do limit the amount of information that I allow Google to gather about me - as a security precaution ...

Conversely, all FB has is personal information. It will have to develop algorithms to create "best guess" probabilties that I do or do not want a widget - based on the information in my account. It will then sell my information to its advertising clients - without any input from me.

If I start getting spammed on FB by advertisers for products I don't want - then I am going to limit the information that I want given out, or drop FB all together. As a result, advertisers are going to drop FB [ala GM] since they see no upside to it. No advertising - no bucks ...