Headlines from the UK tell us that Facebook has had ads cancelled because they were placed next to dubious content. Well that is hardly a surprise. First Direct, Vodafone, Virgin Media, the AA, Halifax and the Prudential withdrew their Facebook advertising after it was disclosed that their advertisements were being displayed on the Facebook page of the British National Party (BNP). The ads of the six companies were being rotated through the BNP’s page along with other advertising. Facebook is said to be unable to block campaigns on specific Facebook pages.

At the same time Techcrunch reports that a presentation Bear Stearns Internet analyst Robert Peck recommends a broad strategy for Yahoo to get into the social networking space, with a prediction that social networking sites will account for 12% of all online advertising by 2012. This presents an interesting dilema for business. Risk going to bed with the devil, or miss the party altogether?