[jonknee]

That's a ridiculously high CPM for social media. The page views are very low value, even with all the targeting. Considering their revenue now and their traffic figures (over 1 trillion page views a month), their average is currently very low. $1B / 3T page views = $.33 RPM. They get a decent chunk of revenue through things other than advertising (namely their payments system) and that's a low-ball on the traffic, their traffic is very low value. Further growth is likely to come from international markets that are also very tough to monetize. To get that RPM up 10-20x would be astonishing.

[redthrowaway]

I still don't see their endgame being traditional display advertising. It just can't provide the kind of cash they need. I think we'll see the engineers at facebook find ways to directly exploit the value of their network, but I only have vague notions of how they might do that.