The product advertising glossary
What is LTV?
Lifetime value estimates the value a customer produces over a defined relationship or observation period. It may refer to revenue or contribution, so the basis matters.
By Drizzle team
A practical example
A cohort averaging three $50 orders has $150 observed revenue per customer. Its contribution value is lower after the costs of those orders.
How to use it
Use a stated time horizon and separate observed repeat purchases from projections. An optimistic long-term estimate should not hide a cash-flow problem today.
Put it in a creative brief
Write down the event, asset, or workflow you mean by LTV before sharing a brief or report. For campaign measurements, keep the source and reporting window with the number. For creative work, attach an example so the team can assess the same thing.
Explore the creative testing guide, calculate campaign results with the ad metrics calculator, or return to the glossary.