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In the short term, yes. And in the context of them trying for an IPO, that's probably what they want. But it absolutely will kill the site in the end because no one actually wants to hang out in an ad riddled wasteland.
I'm still on Facebook because of that's how I keep up with friends I no longer live near, but you know what Facebook has been loath to show me recently? Posts from my friends. Easily 75% of my feed is sponsored or "recommended" content. If they're not going to show me the one and only thing I come to the site to see, I might as well not come to the site.
And unfortunately half the shit from my friends are shit reposts.