Will social networking sites collapse when advertisers realize that ads on the internet don't work?

[Questions, questions!]

Apparently Facebook is worth $50 billion. That is pretty bizarre considering people don't have to pay for it.

[nicerat023]

It's worth 50 billion, and yet you claim internet ads don't work. Why would the companies pumping all this money into the ads keep doing so if they didn't yield any return? Oh, that's right, they wouldn't.

[Jordan]

Actualy there are some moronic people who do Liston to these ads that's why there on the site pluss billions of people see the ad a day so it is a good idea to advertise on facebook

[J]

The Internet has changed how we decide what to buy. Today we’re all digital explorers, seeking out online ratings, social media-based peer reviews, videos, and in-depth product details as we move down the path to purchase.

Over 50% of all purchases are preceded by an Internet search
Some call this decision making result from online research the "Zero Moment of Truth"
82% of local searches result in offline action