Will video ads supercharge Facebook's revenue engine?
Yahoo's Marissa Mayer describes her scheme for fueling company growth as a kind of chain reaction. It goes like this: great people leads to great products and increased ubiquity, which drives user growth and higher engagement, leading to higher advertiser spending and ultimately more revenue.
That chain reaction underlies almost every business offering free services dependent on advertising to pay the bills. Like Mayer, Facebook's Mark Zuckerberg is seeking ways to get his chain reaction into a higher gear. Last year, Facebook generated more than $5 billion in revenue, but spent more than $4.5 billion to produce … Read more