What is LTV?

In monetization analytics, LTV (Lifetime Value) answers one of the most important questions in game development: How much revenue does one player bring over their lifetime in your game?

It reflects the long-term result of your design, retention, and monetization systems.

1️⃣ Definition

LTV = ARPDAU × Average Days Played

Or, more generally:

LTV = ARPU × Average Retention Time

Variable	Meaning
ARPDAU	Average revenue per daily active user
Avg Days Played	Total number of days the user stays engaged

📍Example: ARPDAU = $0.10, Average Days Played = 25 → LTV = $2.50

2️⃣ Why LTV Matters

Use Case	What It Enables	Design Insight
UA scaling	Determines how much you can spend on acquisition (CPI)	Is your growth sustainable?
Monetization health	Long-term value per player	Are players investing — with money or time?
Roadmap planning	Forecast future revenue by cohort	Will this feature justify the cost?
Segment comparison	Tracks differences by platform or region	Do whales come from Android or iOS?

📍If CPI > LTV, you’re losing money. If LTV >> CPI, you’re ready to scale.

3️⃣ LTV Ranges and Interpretation

LTV Range	Game Type
<$1.00	Hypercasual, ad-only monetization
$1–$5	Light casual with ads + IAP mix
$5–$20	Midcore, gacha, or strong LiveOps loop
$20–$100+	Hardcore, 4X, RPG, whale-supported economies

📍LTV is genre-anchored. You don’t need high LTV — you need viable LTV.

4️⃣ What Affects LTV?

Factor	Role
Retention	More sessions = more value
Monetization	IAPs, ads, subscriptions
Engagement	Session count, depth of interaction
User segment	Country, platform, source — all change LTV

📍LTV isn’t one number — it’s a landscape. Segment it.

5️⃣ How to Increase LTV

Area	Design Actions
Retention	Shorten FTUE, add dailies, deepen progression
Monetization	Offer packs at multiple price points, add subscriptions
LiveOps	Run events, time-limited offers, content loops
Social systems	Guilds, co-op, competition → players stay longer
Ad integration	Use rewarded ads with real utility, not annoyance
Personalization	Segment offers by behavior, spending, location

📍More content ≠ more LTV. More reasons to return and invest = more LTV.

✅ LTV Checklist

Do you track LTV by cohort (platform, region, source)?

Is it increasing over time — or stagnating?

Are your LiveOps tied to long-term engagement or just spikes?

Do new features measurably extend player lifespan?

Is your CPI below your average LTV?

📍LTV grows from design intention — not just monetization tricks.

Summary

Term	LTV – Lifetime Value
What it tracks	Total revenue per player over time
Why it matters	Key metric for growth, ROI, and sustainability
Improved by	Retention, monetization variety, systemic depth
Paired with	CPI, ARPU, ARPDAU, Retention, ROAS

📍LTV is your game’s return-on-design. It tells you how much each player values your game — and how well your systems return that value.