matrix
August 23, 2015, 12:22am
1
Based on the following, how can you calculate the life time value of an app user:
New users that Day: 22304
Interstitial ecpm: $15.20
Interstitial/day: 1.8

Day 1 retention: 45%
Day 2 retention: 39.93%

I calculated $2.91 for day 1 and $2.53 for day 2. Is this correct?

toxic
August 23, 2015, 5:21am
2

matrix:

Based on the following, how can you calculate the life time value of an app user:
New users that Day: 22304
Interstitial ecpm: $15.20
Interstitial/day: 1.8

Day 1 retention: 45%
Day 2 retention: 39.93%

I calculated $2.91 for day 1 and $2.53 for day 2. Is this correct?

If you made over $60k on that day, then yes, your LTV is $2.91

you can’t calculate LTV with stats you provided, you are not accounting for past day users.

The easiest way is:

total downloads / total revenue = LTV
active downloads / total revenue = LTV of active download

matrix
August 23, 2015, 5:17pm
3
Actually, shouldn’t Day 2 be $5.44 (adding the prev. day’s total)?

toxic
August 23, 2015, 7:27pm
4
Well, did you make one hundred thousand dollars after two days?

My guess is no.

You can not model LTV based on retention. If anything, LTV is dropping, the further you get to the end of your cohort.