Google is a tool and Facebook is entertainment. If you look at the history of advertising, entertainment companies have done far better than tool companies. Who made more money in the 20th century--the magazine publishing industry or the Yellow Pages?
Think of Facebook like a magazine. When people read through National Geographic, are they looking to buy a camera right then? No. And yet all the camera companies advertize heavily in Nat Geo because having their ad next those photos creates a positive brand association.
Facebook is developing the ability to show ads that are contextual to whatever you're reading or talking about on Facebook. Their success won't be measured in clicks, but in the same way companies have valued brand ads for decades--by statistical research.
Think of Facebook like a magazine. When people read through National Geographic, are they looking to buy a camera right then? No. And yet all the camera companies advertize heavily in Nat Geo because having their ad next those photos creates a positive brand association.
Facebook is developing the ability to show ads that are contextual to whatever you're reading or talking about on Facebook. Their success won't be measured in clicks, but in the same way companies have valued brand ads for decades--by statistical research.