Glossary | A | App Life-Time Value (LTV)

What is App Life-Time Value (LTV)?

Lifetime Value (LTV) is a key metric which estimates the revenue a single user generates throughout their lifetime using an app. Ultimately, LTV predicts a user’s monetary value over time. For app developers, LTV gives an accurate picture of how successful the current monetization strategy is. The goal is to have users with high LTV, which means higher retention and a more long-term loyal user base that brings valuable revenue. How do you calculate LTV? App LTV is calculated by looking at the app revenue sources (in-app advertising and in-app purchases, i.e. the number of ad impressions the user saw throughout their lifetime.