The ultimate goal in customer acquisition is to acquire the users with the highest possible lifetime value (LTV) at the lowest possible customer acquisition cost (CAC). However, because ad platforms only attribute conversions that occur within a short conversion window, it is not possible to optimize against actual lifetime value. As a result, you probably optimize against proxy events like registrations, free trials, subscriptions, or initial purchases. This is suboptimal however, and a better approach is to predict LTV within the conversion window, and optimize against these predictions.
We send our LTV predictions directly to the main ad platforms via their APIs, enabling you to use them as an optimization objective. For Meta, this enables predicted LTV based conversion optimization, value optimization, and bid multipliers. For Google, this enables Target ROAS and Max Conversion Value based Smart Bidding.
Incorporating LTV predictions into your ad campaign optimization is crucial for maximizing ROAS and fostering profitable long-term growth. Get in touch to reap the benefits of predicted LTV.