Apparently, according to ValleyWag, Facebook performs extremely poorly for advertisers even though their audience is EXTREMELY engaged. Maybe that’s the problem — the young generation is TOO engaged while browsing through numerous personal profiles, sending messages, uploading photos, commenting, and editing their profiles. I’ve used Facebook for about 3 years. FB supposedly sees .04% click-through-rates versus the .1% CTR’s myspace advertisers see.

From personal experience, I would guess I’ve maybe clicked ONE ad in the hundreds of hours I’ve spent on the site — and that was probably by accident. To me, it’s simply the fact that I’m not in a state of mind to buy anything while on FB…I’m just wanting to socialize (virtually). However, that said, I still believe advertisers interested in repeat exposures to generation Y should be advertising on Facebook. It may not pay off immediately, but in the long-term, it should pay dividends and generation Y ages.

What do you think — should Facebook stay independent & build or sell?