My wishlist for Facebook includes the ability to bid separately for regular ad wall traffic vs. apps traffic (example: ads shown while a user is playing Farmville).

If you have Google Analytics in place, you'll see that the apps.facebook.com visitor is worth a fraction of the non-apps visitor.

To me, there's a clear difference between the two types of users and it all comes down to attention level.

Low CPM's don't mean advertisers won't take FB seriously. After all, if high CPM on a major network isn't yielding ROI but a low CPM on FB is, where is my money going to go? But we are both in agreement that it is a low CPM for sure and they can do more to leverage their page space and apps to profit.

@Dave It does depend on your product, but before you write off FB, look at how you are approaching the consumer with your offering. What works on search rarely works on FB. Hit me up if you want to talk tactics – I might be able to help.

I think it all depends on what your product is and if brand awareness is of any value to you. Obviously big brands just need exposure, but the question is, do you turn to facebook when your looking to purchase, or do you 'google' it?

CT, in your comment directed to Kieth, you said that Facebook will never be taken seriously by major advertisers, have you noticed who's advertising on Facebook? Apple, Mastercard, Visa, and more have all done major campaigns on facebook. What's more, more and more tv spots are directing viewers to the brands facebook page rather than directly the brand's URL. This tells me that a lot of big time Advertisers and brands are finding significant value on Facebook.

Statement AND question of the year award to you CT.

Your articles are always thorough, timely and thought provoking – but with this one, I think you've squeezed some fresh genius juice. Zuckerberg should wallpaper their offices with posters of your two sentences above. Make "way" plural above and my second sock would also have blown off.

Take Adwords: there's a blend of DIY advertisers and major companies that spend hundreds of thousands a month on clicks month after month. And it's having these guys as advertisers on paper that help bolster the companies value.

Again, I'm not saying that Facebook is in on the verge of imploding. I'm just saying that they're not anywhere near their ad revenue potential, and if they want to meet that potential, they have to reinvent their ad offer — which they can and should

Low ad value is certainly an issue for low volume advertisers, no doubt. However, I'd say that FB is in a unique position: 176 billion impressions in Q1 2010 – 16.2% of the market, topping everyone else. Yes, Yahoo is in second place with a much higher average CPM and therefore more revenue, but for FB volume makes up for the low ad value right now, and the better we advertisers become at targeting and the more there are, that rate is going to rise.

In my opinion it isn't a question of what FB could sell the impressions for, as they have created a pretty robust market internally. The system is run on a demand basis instead of a negotiation basis, which makes a huge difference for tens of thousands of advertisers.

Nevertheless, that doesn't help Facebook. What I meant is that the low ad values don't bode well for Facebook or its investors.

They really need to find a better way of monetizing all that data and traffic — as well as recouping their overhead.

However, one of my favorite stories from running campaigns on Facebook is when Jones Soda, a client of mine, tried to run ads for their Hanukkah pack soda. Interestingly at the time the term Hanukkah (or alternate spelling Chanukah) was not available, where the term Christmas was. We asked Facebook Ads support team about the discrepancy. What's funny is that they did get back to us saying the term was available…in January.

The potential of promising targeting aside, CT is right in that NDL (to paraphrase basketball lingo) Numbers Don't Lie.

If Facebook could get $2.43 CPM why are they settling for a $0.56 CPM? Because larger advertisers still think of Facebook ads: as something they might run if they were using MSNDR (thus the potential tie to Bing); as a testing ground for messaging; and as a way to increase followers on their Facebook page.

Ultimately CT is right on when he states, "most Facebook ads untargeted to the extent that they’re unwelcome." It is a factor that mitigates the benefits of the interface.

If Facebook doesn’t want to give up that $1.87 CPM, that's something they will have to fix.