[Rhino55]

This is nonsense. It has no place on HN.

First of all, cheap ads are not a bad thing. Cheap ads are like cheap oil: sure, it may put some oil companies out of business who can't deliver product efficiently, but this has no impact on the rest of the economy.

Second (I can't believe I'm actually defending FB) a lot of people go to the site. If FB can maintain control of the social internet and, frankly, suck less, they will own a massive channel. Part of the trick is controlling a bunch of social networks. This would would allow FB to set ad prices on all networks like a cartel.

Third, if you see a price war between Google and FB, then everyone who wants to advertise on the web wins. Yes, start-ups that hope to capitalize on ad-supported services suffer, but the rest of the web, not to mention the economy, pays no attention.