Is the thrill of Facebook starting to fade?

 In a Reuters story today, a recent survey revealed that 4 out of 5 Facebook users have never bought a product or service as a result of an ad or comment viewed on Facebook.  Even more discouraging is the fact that while the number of Facebook subscribers might be growing, 34% of those surveyed reported that they are spending less time on the site than they did 6 months ago.

Advertising on the site appears to not be very effective and user engagement is waning.

These are very hard facts and a tough position to be in for a company with an advertising revenue business model.