Ad Campaigns on Facebook Showing Poor Click Throughs

I did some more research on Facebook and found a couple of interesting articles on the poor quality of advertising campaigns in Facebook. Below is an excerpt from Valleywag:

Facebook‘s members appear indifferent even to movie advertising aimed at their demographic. Clickthrough rates, the percentage of time users click on an ad, average 0.04% — just 400 clicks in every 1m views — according to one report seen by Valleywag.

In another post by Reach Students Blog:

We’ve run four targeted campaigns this year using its flyer ads, and each time the results have been disappointing.

Our most recent campaign saw 1.4 million page impressions delivered at specific universities – and only a 0.04% clickthrough rate. Ouch.

So, how does money play into a free social networks revenue model. Will the bottom fall out?