I think Matt has brought up a very good point. He is right for the most part. Facebook is trying to create some new web 2.0 type of advertising model. It is trying to be different in the ad space and it is not working.
Although, I do think advertising can work for Facebook. They need to start small and focus advertising around features that people use on facebook. There are certain applications that people use more then others on facebook. Mainly photos, videos, events, news feeds AND SEARCH. People search on facebook, not so much to find information as they use google for. I think facebook can create a similar adwords model and build advertising around those core services.
Although, I do think advertising can work for Facebook. They need to start small and focus advertising around features that people use on facebook. There are certain applications that people use more then others on facebook. Mainly photos, videos, events, news feeds AND SEARCH. People search on facebook, not so much to find information as they use google for. I think facebook can create a similar adwords model and build advertising around those core services.