As a customer of Facebook's Cost Per Impression media (ads paid for when they are seen), we've inquired about using their Cost Per Click programs (ads only paid for when they are clicked, merely being seen is free). Check out the CPC program here:
The response is that scale allowed is extremely limited. They say I could only buy about $15k worth of media in month. With the scale my advertisers are trying to reach its logistically inefficient to invest the time to go in the CPC system.
What is $15k of media or 15,000 clicks going to do for advertisers trying to effect the behavior of couple hundred million people? Yes, they might seed a viral explosion, but 1,000,000 people can seed a viral explosion a lot better.
I think this is another example of Facebook being inconsistent. Beacon was literally going to change advertising as we know it and then completely backed away from. Rules constantly change for application developers and they don't know which end is up. Advertisers get pissed because Facebook will posture that CPC is a great product unless you have real money to spend.
All this makes it difficult for their larger marketers to determine how Facebook fits in the very BIG picture of their marketing. Until that happens there are not going to be any HUGE ("sure I'll cut my TV budget type") bets. Want proof? Click here.
Facebook needs to get past the point of throwing a bunch of shit at the wall and seeing what sticks if it wants to swim in the deep end. Until we know where you stand and confidence that what you say to today will be true tomorrow, and true for everybody (especially your largest customers) advertisers might dip their toe in the water but we won't throw down.
I hope the new COO gets this together.