The total profit or revenue a customer is expected to generate over the relationship. LTV sets the ceiling on what an advertiser can rationally pay to acquire a customer, and predicted LTV at the point of acquisition is what sophisticated advertisers optimize toward instead of first-purchase ROAS. Value-based bidding on Google and Meta is an attempt to bid on this signal.
Related terms
Used in The Signal
Cite this entry:
Agency Echelon. "LTV." Agency Echelon Reference, reviewed September 2026. https://agencyechelon.com/reference/glossary/ltv/