Written by
Head of Mobile Attribution - Affise MMP
Don’t have a Reach account? Sign up here
Don’t have a Performance account? Sign up here
As the mobile ecosystem continues its rapid growth, marketers and product managers are seeking more sophisticated ways to measure the performance and profitability of their user acquisition efforts. One critical metric in this evaluation process is Lifetime Value (LTV) – an estimate of the total net profit attributed to the ongoing relationship with a customer. While calculating LTV is far from new, the surge in mobile app usage and the complexity of today’s acquisition channels have made it both more valuable and more challenging than ever. A key factor influencing the accuracy and reliability of LTV calculations is mobile attribution.
In this article, we’ll explore the relationship between mobile attribution and LTV, the challenges of accurately assigning credit to user acquisition channels, and how better attribution practices lead to more meaningful LTV insights.
Lifetime Value (LTV) measures the revenue – or profit – generated by a user throughout their entire lifecycle with your product. While there are various methods and formulas to calculate LTV, the underlying goal remains consistent: to determine how much a user is worth over time. Accurately calculated LTV allows businesses to:
While understanding LTV is essential, its usefulness depends on data quality and the integrity of the user journey. This is where mobile attribution enters the picture.
Mobile attribution is the process of identifying the marketing source that leads a user to install an app and engage with it. It tracks the origin of users – from ad clicks to installs, subscriptions, and in-app purchases – helping app owners understand which campaigns, channels, and networks are bringing in users, and more importantly, which of those users become valuable over time.
While the benefits of robust attribution are clear, implementing it is no simple task. Today’s mobile ecosystem is fragmented, and users often interact with multiple devices, channels, and platforms before (and after) installing an app. Some key challenges include:
In an era of data-driven decision-making, the synergy between mobile attribution and LTV calculation cannot be overstated. Accurate attribution illuminates the path from a user’s very first touchpoint to their long-term revenue contributions, enabling marketers and product managers to invest in channels that truly drive growth.
By overcoming the challenges of multi-touch journeys, evolving privacy standards, and complex data pipelines, businesses can harness the full power of mobile attribution. The reward is clear: more reliable LTV figures that fuel smarter marketing strategies, better budget allocation, and ultimately, more sustainable growth in the mobile-first marketplace.
Try Affise MMP today and track LTV growth with us.
Written by
Aleksei Protopopov
Head of Mobile Attribution - Affise MMP
Stay on top of the competition. Let us keep you updated with news, insights, and more