It will be very interesting to see how this plays out. The potential for small business is significant. Shortly after this announcement, a second Facebook ad server solution popped up: http://www.allfacebook.com/2009/11/second-facebook-ads-manager/

Insightful comparison between response rates for email newsletters (the opt-in variety) and Facebook Page Updates. While newsletters draw significantly higher response rates, they also typically aren't send out with the same frequency. The test AllFacebook did drove a 3.65% response rate, while newsletters typically hit 25%. However, keep in mind that AllFacebook probably has a more active Fan base than most companies.

Facebook, is allowing users to access their ad campaign management software using a standard API. Great for any media or ad serving group that can now manage all their ad campigns through their own proprietary tool. Can we haz page stats api please?

The feature enables advertisers to target those “users whose friends are connected to” specific Pages, Events, Groups, and Applications that you currently manage. For example, if you are a friend of mine, an advertisement for Basement would say “Jen is a fan” at the bottom of the ad. The result is that advertisers will be able to more effectively monitor conversion rates on the “friend of connections” ads, something they weren’t previously able to accomplish.

The ideas here aren't new, but the summary sounds tight as MySpace needs to find something to latch onto. They probably won't be able to take Facebook on head on. The LBS music service idea is interesting, and would seem to be an in for several of those services, including Loopt.