It seems there is no such thing as bad press, at least for Facebook. Despite a major personnel shakeup, a controversial redesign and a growing reputation as a professional liability the site continues to enjoy an ever increasing user base and new found popularity. Among social media sites it sits firmly atop the heap and appears to have a bright future ahead. But buzz alone can not address some of the critical issues the site will face in the coming months.

First and foremost the site has yet to significantly monetize anything other than advertisement. The current and project economic climate will not bode well for the online ad market and it's imperative that the company finds other avenues of revenue if it is to become a long term player. But Facebook is not alone in this dilemma as it is shared by virtually every social site on the web.

The second major challenge ahead Facebook is the ever increasing threat of malicious ads and widgets on the site. Popularity inevitably entices unscrupulous parties to game the system and to try to steal personal information through a combination of software exploits and social engineering. Facebook's user population is a lucrative target since many of its users are novice computer users who are willing to share personal information in a public space. To address this problem Facebook needs to implement a better review process for applications and advertisements. However this is costly since it requires human intervention and an ever vigilant eye for malicious content masquerading as an otherwise benign feature.

The last, and for some, most important challenge Facebook needs to address is its overly complex and confusing layout. The current design met with great criticism when it was first introduce. While some of feedback can be attributed to resistance to change, much of it is legitimate. At present there is little continuity in the function or layout of the site. Some features are virtually inaccessible from parts of the site and the overall structure is both confused and haphazard.

Long time web users find the site disjointed and often complain about not being able to find desired features. Others are quick to point out the quirkiness of behavior in how some sections refresh in an "AJAX-like" fashion while others cause a page refresh. However more alarming is the number of new comers who simply find the site too complicated to use and are relegated to the 20% of content they find navigable. While some of this can be alleviated through experimentation the danger is that once the buzz wears off many of these users will simply abandon the site.

As a web application Facebook is at the top of its game, however as an example of Web 2.0 design methodologies it is abysmally behind the times. At best the current implementation is a C+ effort which will affect the site's long term prospects if it is not corrected. While revenue streams can be discussed and executed in the board room, the design and content issues of Facebook are better solved by boots on the ground software engineers and the dedicated group of early adopters who helped Facebook reach critical mass.

Update: Facebook how has an "Application Verification Program" however it has drawn sharp criticism due to cost as well as effectiveness.

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