LTV (Lifetime Value)

Lifetime value (LTV) is the total revenue a user is expected to generate over their relationship with an app — from purchases, subscriptions, ads or a combination. It is usually estimated from early cohort behavior and refined as data matures.

LTV sets the ceiling for what you can afford to pay to acquire a user. If predicted LTV comfortably exceeds CPA, acquisition is profitable and can scale; if not, either costs must fall or monetization must improve. LTV differs widely by market, platform and channel, which is why UA teams track it per segment rather than as a single blended number, and use ROAS at fixed days (D7, D30) as a practical proxy.

Early LTV predictions are estimates, so revisit them as cohorts age and adjust bidding targets when real revenue curves differ from the forecast. Treat LTV as a living number that guides decisions rather than a fixed promise.