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## Reports

Lifetime value (LTV) is an important metric that can help guide your user acquisition and monetization strategy.

## What is LTV?

LTV is the cumulative revenue a user generates since they installed your app. This includes revenue from in-app purchases and revenue from ads. The ads revenue is the total revenue from the AdMob Network, your bidding ad sources, and your estimated third-party revenue.

There are four types of LTV in AdMob:

• LTV: The overall LTV for a user cohort, including revenue from in-app purchases, ads, and subscriptions.
• IAP LTV: The LTV from in-app purchases for a user cohort.
Note: In-app purchases (IAP) revenue is calculated post revenue share with the Google Play store and the Apple App Store.
• Subscription LTV: The LTV from subscriptions, including renewals, for a user cohort.

## How is individual LTV calculated?

LTV is the total cumulative revenue per user since they installed your app. Here’s an example calculation of LTV for User A:

 User A 07/01/2023 (Install day D0) 07/02/2023 (D1) 07/03/2023 (D2) 07/04/2023 (D3) Ads revenue \$0.10 \$0.50 \$1.50 \$0.75 IAP \$0 \$1.00 \$1.00 \$1.00 Total revenue per day \$0.10 \$1.50 \$2.50 \$1.75 LTV \$0.10 \$1.60 \$4.10 \$5.85

In this example, User A’s D3 LTV is \$5.85 (User A’s cumulative revenue since D0).

Note: The AdMob Cohort report does not include individual LTVs, instead showing a cohort LTV.

## How is cohort LTV calculated?

The average LTV for a cohort is calculated by adding the cumulative revenue for each day since install and dividing it by the number of users in that cohort:

`Dx LTV = (Total revenue from D0 to Dx days / Number of users that installed on D0)`

Note: X is the day that you are calculating the LTV for. For example:

`D3 LTV = (Total revenue of D0 + D1 + D2 + D3) / Number of users that installed on D0`

## Example calculation for cohort LTV

Assume User A and B are the only users that installed your app on 07/01/2023 (D0). This means that they’re the only users in this cohort.
 User A 07/01/2023 (Install day D0) 07/02/2023 (D1) 07/03/2023 (D2) 07/04/2023 (D3) Ads revenue \$0.10 \$0.50 \$1.50 \$0.75 IAP \$0 \$1.00 \$1.00 \$1.00 Total revenue per day \$0.10 \$1.50 \$2.50 \$1.75 LTV \$0.10 \$1.60 \$4.10 \$5.85

User A’s D3 LTV is \$5.85 (User A’s cumulative revenue since D0).

 User B 07/01/2023 (Install day D0) 07/02/2023 (D1) 07/03/2023 (D2) 07/04/2023 (D3) Ads revenue \$0.20 \$0.25 \$0.50 \$0.75 IAP \$0 \$0.75 \$1.00 \$1.00 Total revenue per day \$0.20 \$1.00 \$1.50 \$1.75 LTV \$0.20 \$1.00 \$2.50 \$4.45

User B’s D3 LTV is \$4.45. (User B’s cumulative revenue since D0).

To find the D3 LTV of the 07/01/2023 cohort, we use the following calculation:

`D3 LTV of 07/01/2023 cohort = (User A D3 LTV + User B D3 LTV) / Number of installs = (\$5.85 + \$4.45) / 2 = \$5.15`

The D3 LTV for the 07/01/2023 cohort is \$5.15.

## How is ads LTV calculated?

• AdMob Network and bidding LTV is calculated using exact eCPM values.
• Third-party ads LTV is calculated by estimating the eCPM based on the ad source, country, ad unit, and day.
• Custom event LTV is calculated using the manual eCPM value entered for positioning the event in the mediation waterfall.