What is Player Lifetime Value?

Player lifetime value, usually shortened to LTV, is the total net gaming revenue a referred player is expected to generate over the whole life of their account, rather than in their first month. It is the number underneath every deal negotiation in affiliate gambling, and it is why the same traffic can be worth two completely different amounts depending on how it is paid for. The comparison it settles is straightforward. A cost-per-acquisition deal pays a fixed sum once, at first deposit. A revenue-share deal pays a percentage of whatever the player produces, for as long as they play. If lifetime value is high, revenue share earns more and CPA is the operator's bargain; if it is low, the fixed fee was the better trade. Operators know their own retention curves and affiliates mostly do not, which is why an operator that pushes hard for CPA on a particular market is telling you something about that market. Lifetime value is not one number. It varies by country, by acquisition channel, by device and by the bonus a player arrived on — a large welcome offer attracts a different population from a small one. It is also skewed rather than average: a small number of accounts contribute most of the revenue, so a mean figure across a cohort describes almost nobody. Because it depends on how much people ultimately lose, lifetime value also points at the uncomfortable part of the model. The traffic worth most is the traffic that plays longest and loses most, which is exactly the traffic responsible-gambling rules exist to protect.