Why Facebook must prove the worth of social advertising

A huge proportion of the social network's value depends on its solving its ad revenue problem.

One lackluster IPO later, Facebook holds a market valuation that's impressive but well shy of the $100 billion most expected. A large factor in that shortfall has been a concern that the company isn't generating as much advertising revenue as it should be, and it's fair to say a huge proportion of Facebook's theoretical value depends on its solving its ad revenue problem. Can the company show that socially driven advertising is superior to traditional ad methods? And more important, can it do so before the market loses interest?

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