Lifetime value (LTV)
Lifetime value, or LTV, is an estimate of the average revenue a customer will generate over the time that they use a given product or service.
What is LTV in mobile marketing?
Lifetime value is a KPI (key performance indication) often used in determining how valuable a user is over the span of time which they are using an app.
It is one of the key mobile metrics and is instrumental in growing a mobile app business.
A core metric for mobile business growth
The LTV metric helps marketers modify advertising budgets and pinpoint exactly how much money they can afford to spend on user acquisition and still remain profitable.
The first thing to do when when calculating LTV is to measure how much revenue an app is generating and from which sources.
With plenty of data to work with, the marketer can properly optimize revenue streams, e.g., in-app purchases, in-app advertising, subscriptions, and premium/paid-for apps. A mobile measurement and attribution provider can help properly define and analyze all your in-app events.