Lifetime value (LTV)

Lifetime value (LTV) represents the total revenue a business can reasonably expect from a single customer throughout their relationship. This long-term metric provides crucial context for PPC campaign evaluation beyond immediate conversion value. Understanding customer LTV enables more strategic bidding decisions, allowing higher acquisition costs for customers with greater long-term potential. Advanced PPC strategies incorporate LTV data into bidding algorithms and audience segmentation to prioritize high-value customer acquisition.