This article is spot on in pointing out that search advertising is more valuable and more effective than display advertising, and that Facebook will most likely

This article is spot on in pointing out that search advertising is more valuable and more effective than display advertising, and that Facebook will most likely never be a major player in search. However the rest of the things this article is getting at is bogus, much like most of the talk I hear regarding Facebook's monetization. While speculating about the crapiness of Facebook's ads system and bringing up numbers like phenomenally low click thru rates compared to search, people seem to forget that display, interruption based online ads work. Facebook can also do it better than almost anyone because of the 'interest' and 'likes' data they have. And I don't believe they are even using retargeting yet but that's another conversation for whether or not it's even possible for them. Basically what I'm trying to say is you can't compare search ads (Google) to display ads (Banner ads, Facebook, basically everything else) by just stating the difference between the two. Such a comparison must be done scientifically through case studies or experiments. Don't bring up Facebook's average click thru rate in such a debate without mentioning that the billion dollar display ads industry (which has no end in sight) has the same low click through rates. Would it be nice for Facebook to know what you want? Yes it would be amazing, but that's not possible, and that's not a problem. They already know what you like, and it makes for a great (self-serve) display advertising experience. I'm not saying what they should do to make more money because I don't know, I'm just saying that their current ads system is not the problem.