Lifetime Value (LTV)
LTV is the total net revenue a user is expected to generate over their lifetime with your app, guiding how much you can profitably spend to acquire them.
Definition
Lifetime value (LTV), also called customer lifetime value (CLV), is a prediction of the total revenue a single user will generate from the moment of acquisition until they churn. For mobile apps, LTV is typically measured at D7, D30, D90, and D365 milestones, with LTV curves modeled forward from observed early behavior.
LTV is the ceiling on profitable acquisition costs. If a user is expected to generate $12 in LTV, spending $15 CPI to acquire them is unprofitable regardless of creative performance. Understanding your LTV by acquisition source, creative, and user segment enables rational budget allocation and bid strategy.
LTV varies dramatically across acquisition channels and creative types. Users acquired through high-relevance creatives that accurately represent the product tend to have higher LTV than users acquired through misleading or clickbait creatives, a critical insight for creative strategy.
Why it matters
LTV is the foundational input to every profitability calculation in mobile UA. Without accurate LTV estimates, you're bidding blind, unable to determine whether your ROAS is actually profitable or whether your CPI target makes business sense. Creative teams that understand which creatives attract high-LTV users can prioritize those creative patterns even when they cost more to run.
Formula
LTV = Average Revenue Per User × Average User Lifetime
Example
In practice
A mobile game measures D30 LTV of $4.20 for users acquired through gameplay-authentic video ads vs. $2.10 for users acquired through misleading 'easy game' ads, informing a strategic shift toward authentic creative despite higher CPI.
Frequently asked questions
What is a good LTV for a mobile game?
Hyper-casual games often have LTV of $0.30–$1.50. Mid-core games $3–$15. Hardcore/strategy games $20–$100+. The key metric is the LTV:CPI ratio, LTV needs to meaningfully exceed acquisition cost (typically 3:1 or better) for sustainable growth.
Connect creative performance to LTV outcomes
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