Lifetime Value (LTV)
Lifetime Value (LTV) represents the total revenue a customer is expected to generate over the course of their relationship with a brand. In digital advertising, it’s one of the most critical metrics for understanding profitability and optimizing acquisition costs.
Advertisers use LTV to determine how much they can afford to spend on acquiring new users. For example, if the average customer produces €300 in lifetime revenue and acquisition costs are €50, the campaign yields a strong return.
By combining LTV data with real-time programmatic analytics, marketers can focus on high-value audiences and adjust bids dynamically based on projected long-term profitability. This approach turns short-term performance metrics into sustainable business growth.
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