I haven't advertised on Facebook myself, but this is is an interesting concept. If it's broadly true and that Facebook essentially has two "classes" of users,

I haven't advertised on Facebook myself, but this is is an interesting concept. If it's broadly true and that Facebook essentially has two "classes" of users, then it's up to them to price them segment and price them effectively for advertisers. This reminds me of Paul Graham's essays about Viaweb's acquisition by Yahoo[0][1], and how Yahoo seemed mostly uninterested in PG's algorithms for Revenue Loop. To quote: "In 1998, advertisers were overpaying enormously for ads on web sites. In 1998, if advertisers paid the maximum that traffic was worth to them, Yahoo's revenues would have decreased." I remember when AdSense ads used to be images and Google replaced them with text links, essentially reducing the clickable surface area of the ads. This essentially slashed revenue in the short term with the theoretical long-term benefit of reducing accidental clicks and increasing the value of the clicks they did send to advertisers, who should then be willing to pay more. As a now public company, it will be interesting to see which path Facebook follows. [0] http://paulgraham.com/6631327.html http://paulgraham.com/6631327.html [1] http://www.paulgraham.com/yahoo.html http://www.paulgraham.com/yahoo.html