A company known as Limited Run recently announced that they are leaving Facebook. Basically because of two reasons.

First, they did their own analytics and found that 80% of the clicks on the ads Facebook was charging them for were from automated "bots."

Second, the company changed their business name and requested that Facebook change the company name on their business page. But Facebook allegedly told them that in order to change their name on Facebook, they would have to spend $2,000 more per month on advertising.

If these allegations are true, then there is a BIG question mark on the integrity of Facebook's advertising network. In a related development couple of month's ago before Facebook went public, GM Motors pulled it's ads from Facebook claiming it is ineffective. The automaker spends about $40 million marketing on Facebook and a total of about $1.8 billion globally on advertising per year.

There's been huge debate and widespread scrutiny into Facebook’s viability as an ad platform which has obviously brought the efficacy of Facebook advertising to question.

According to a post on G+ "wonder just how bad things really are behind the scenes at FB when it comes to the advertising side of things now that they're public.
I don't do FB ads but for those of you who do, do you feel that this is an accurate description for how your campaigns perform? I mean, a "claimed" 80% fraud rate for clicks seems a bit high and you would think there would be other companies speaking. Although, Chevrolet, last time I was reading up on FB ads, did pull completely out of the FB ads market"

Facebook in it's first quarter as a public company announced revenues of $1.18 billion, and earning per share of $0.12. Maybe going public came with so much pressure which may have led to adoption of shabby practices that will guarantee optimal revenue on the short term. Advertisement being the major source of revenue for Facebook, it may be stuck in-between making it's ad network which is fast becoming less popular among big advertisers attractive or doing everything possible to keep it's shares lucrative by raking huge amounts in revenue. Either way, the integrity of it's ad business is in a very precarious situation.

Are you getting poor returns on your Facebook advertising?, maybe it's time to re-access your ad campaigns if your leads don't convert. revenue reported is mostly from advertising.

Read: http://www.instapy.com/the-street/opinion/facebook-might-be-cheating-advertisers/