Evolution of Web Ads: Social Media's New Challenge

Peter Smith was browsing Facebook a couple of weeks ago when he stumbled upon an ad for hot singles.

That's not unusual on social networking sites like Facebook, but what was unusual was the picture of the woman in the ad. It was his wife, Cheryl. He called her in to take a look at it.

"Peter and I just really laughed at the ad," Cheryl Smith told CNBC. "It was funny to see that my picture was on an ad for a singles group.