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Cost per Like refers to the cost of acquiring a new fan for a Facebook page, either through paid advertisements or, less directly, through earned media efforts.

For example, an advertiser could specify it is willing to pay $2.00 for a “Like” — that is, for a new fan on its company or product Page — and only pay when the Page gets a new fan.

Specifically, marketers should measure the spending habits of fans versus non-fans, to see if fans are more likely to make a purchase, make purchases at great amounts and/or purchase repeatedly.

Read more here.