Payout Models & Monetization ← Back to Full Glossary

LTV (Customer Lifetime Value)

Quick Definition

The total projected net profit attributed to the entire future relationship with a customer.

Formula / Calculation / Syntax

LTV = Average Purchase Value * Purchase Frequency * Average Customer Lifespan

Understanding LTV empowers advertisers to spend aggressively on upfront customer acquisition (CPA/CPI) knowing the long-term retention and repeat purchase value will deliver strong ROI.

Related Performance Terms & Concepts

More in Payout Models & Monetization

CPA (Cost Per Acquisition)

A performance pricing model where advertisers only pay when a specific, qualifying action (like a completed sale or subscription) occurs.

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CPI (Cost Per Install)

A mobile app marketing payout model where advertisers pay strictly for verified unique mobile application installations and initial launches.

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CPL (Cost Per Lead)

A pricing model where advertisers pay for verified user contact inquiries, form submissions, or pre-qualified registrations.

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SOI vs. DOI (Single Opt-In vs. Double Opt-In)

The verification mechanism for lead acquisition: Single Opt-In confirms upon submission, while Double Opt-In requires email/SMS confirmation.

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