According to TBG Digital, Facebook ads that keep users on Facebook cost less per click than ads that send traffic away from Facebook. Data collected on a sample of 2.8bn impressions by TBG Digital revealed that Facebook’s algorithm charges a 29% lower cost per click (CPC) for ads that keep traffic within the site, by directing users to a brand’s Facebook page, for example. TBG said Facebook uses approximately 140 factors to set an ad’s price.
First, advertisers will feel motivated to increase the portion of their customers’ experience that lives on Facebook. That means potentially fewer assets on brand-owned properties, and a greater reliance on Facebook-focused execution partners.
Second, The Center for Digital Democracy says that, “… regulators need to pry open how Facebook uses its clout to favor its own interests–and its impact on competition and consumer protection.” So, Facebook might soon find itself facing charges of anti-competitive practices, a la Microsoft just a few years ago.
TBG Digital is a Facebook advertising platform that competes against providers such as Context Optional and BuddyMedia.