Facebook, bubbles, and startups

With Facebook off to such a slow start, I wonder what effects will trickle down to the rest of the ‘web economy.’  Social media is a difficult arena to monetize, and I think advertisers  and investors are beginning to pick up on the fact that all web is not created equal.  An ad placed during a shopping session will have value where an ad placed when a user is doing Facebook social activities is as near worthless as an ad placement can be.  Nothing else comes close to Facebook in sheer size or in quality of execution, so if they cannot reverse a trend of decreasing revenue per user, what does that say about social media as a whole?

Personally, I hope it suggests that focused niche areas will be lucrative, and that advertising dollars will begin to follow the analytics more than just following the crowd.  Key points to me are I need to understand the analytics better, and if as a web developer I feel this way, many less technical marketers must also feel this way.  Maybe this is a startup opportunity in itself.