Don't Measure Facebook, Social Media by Click-throughs

Critics still propagate the myth that Facebook display ads offer no return on investment. A study from research firm Webtrends last month found that Facebook's click-through rate declined to 0.051% in 2010, about half the industry average and down from 0.063% in 2009. This means that just one out every 2,000 ads is clicked, even though Facebook's CPM actually increased during that period.

But the study doesn't tell the whole story. It fails to differentiate between targeted and untargeted ads on the social network, and that is a huge distinction.

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