Google has come out and said something that many in the industry - including I - have long suspected: Social networks are poor advertising platforms. For those who can't get beyond the advertising fetish, here's a critical data point that suggests you'll need to indulge that fetish elsewhere. Whereas search is a great indicator of customer interest, social networks are not. Said Google's CFO:We have found that social networking inventory is not monetizing as well as we would like.
Of course it isn't. The model for monetizing them should be much different. Advertising is not the be-all, end-all for the web.