[smachiz]

No, this isn't right - because FB can no longer tell you as much information about the ad they're about to display, they're going to collect less money for it.

They can't correlate that ad to an action, which means they can't make you a happy chart that says the ROI is there. So you're going to pay less for it.

This isn't going to harm small businesses no matter what FB says.

[probably_wrong]

That's one possibility. I'd like to offer a second one: that Facebook will charge the same amount and we are going to pay it. It's not like there are that many successful Facebook clones around.

[smachiz]

Except that's not how the ads work. They're all being bid in real time, by both people using FB tools (small biz) and 3rd parties.

Whoever submits the highest bid wins that ad impression. Less information will mean people bid less, and the targeted ad prices will revert to their less targeted peers from a price perspective.