- 20 Apr 2023
- 2 Minutes to read
Lifetime Value (LTV)
- Updated on 20 Apr 2023
- 2 Minutes to read
What is LTV?
Lifetime value or LTV is the revenue generated by a user either during their entire lifetime, or within a defined time span. It is a key cohort metric that provides insight into app performance. LTV also helps advertisers make informed decisions about an app's user acquisition strategy, and the health of their campaigns.
What variations of the LTV metric does Tenjin provide, and how are these calculated?
By default Tenjin provides the following variations of the LTV metric:
"N-Day" refers to a specific period of time after a user was acquired. N-Day IAP LTV is relevant for publishers that monetize their app via in-app purchases (IAP) or subscriptions. It is the cumulative IAP revenue N-days after install.
This is the average N-Day IAP LTV per user in the cohort. Here is how it is calculated:
100 * IAP Revenue / Number of users on 0 day
For publishers that monetize their app via in-app advertising (IAA), the go-to metric is going to be N-Day Ad Revenue Lifetime Value. This is the cumulative ad revenue N-days after install. The formula for this is:
N-Day Estimated Ad Revenue
This is the average ad revenue LTV estimated by Tenjin per user in the cohort. The formula for this is the following:
100 * N-Day Ad Revenue / Number of users on 0-Day
Finally, this metric is useful for publishers that use hybrid monetization. It is the cumulative total revenue (IAP + ad revenue) N days after install. The formula looks like the following:
N-Day Ad Revenue + N-Day IAP Revenue
This is the cumulative total revenue (IAP + ad revenue) N days after install divided by total users on 0-day. The formula looks like the following:
(N-Day IAP Revenue + N-Day Ad Revenue) / Number of Users on 0-Day
What cohorts of the LTV metric does Tenjin provide?
Tenjin provides the following cohorts of the LTV metric in the dashboard and reporting API for all LTV metrics:
Is the cohorted metric you need not included in the list above? For example, it’s crucial for you to see the 8-Day In-App Purchase Lifetime Value. We can help you build custom cohort metrics with Tenjin’s DataVault using our advanced use cases. Reach out to us directly at [email protected] to learn more.