Very True, but YouTube and FaceBook have a very wide range of users, all races, ages, male, female, and varied interests. If I where an advertiser and was putting an ad onto this site, I would know that my target would be a very small percentage of the users.
Here, all advertisers are aware that they have their prime target looking at the site. Even though many do not buy, 100% are potential customers.
Right, targeting is key. But don't presuppose that YouTube and FaceBook don't target their ads. They do. Look at the ads that come up on the page and notice that they are often relevant to what you are looking at.
Also, because they have such a wide viewership, they can also demand more for their spots. As I analogized previously, SnoWest cannot charge the same amount for a full page advertisement as the New York Times (or Time Magazine).
I'm not saying that you can't make money using online advertisements, I'm just arguing that you can't make a killing doing it. SW already stated they don't bring in enough to run the site off ads and have to subsidize the site (and this was before any upgrades). News organizations are having the exact same problem.
The bigger issue they face is why are people going to pay for something they've been getting for free? I can't answer that because this is just starting to happen and there's not a lot to compare it to.
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