Facebook Gives a Break to Advertisers Who Keep Eyeballs on its Platform

Several weeks ago we sent to the FTC materials involving Facebook's new policy of having its Credits be the exclusive provider of virtual currency for social games, getting 30% cut of all sales.   Such a digital tithe for Facebook credits, in our view, illustrates how Facebook can strong-arm its advertisers.  Now we have a report out of the UK which shows how Facebook plays favorities for those advertisers who craft a campaign that keeps users on its vast social site.
According to New Media Age, "Brands that run ads on Facebook which don’t direct users away from the social network are being rewarded with cheaper spots.  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 there are almost 140 factors that Facebook has set to determine the price for an ad, but its data shows that whether you keep traffic within the site is a key factor..."
Beyond privacy concerns, regulators need to pry open how Facebook uses its clout to favor its own interests--and its impact on competition and consumer protection.