What is LTV?
LTV (customer lifetime value) is the total profit a customer brings over the whole relationship.
When customers buy repeatedly, the first order does not have to cover the full ad cost.
Use LTV only when you measure it from real data. Estimated LTV is the most common excuse for unprofitable ads.
Example
A customer orders 3 times a year for 2 years with 20 EUR gross profit each. LTV is 120 EUR.