CPA (Cost Per Acquisition) vs Lifetime Value (LTV)
What each means, how they relate, and when to use which.CPA is what it costs to acquire a customer; lifetime value is what that customer is worth over time. The two are judged together: acquisition only pays off when LTV comfortably exceeds CPA. CPA is the price of getting a player, LTV is the return on paying it.
CPA is the marketing cost of turning one new person into a paying customer — the total acquisition spend divided by the number of new depositors it produced.
Use it when Use CPA for the cost of acquiring a customer.
Full definition of CPA (Cost Per Acquisition) →Lifetime Value is an estimate of the total net revenue a player is expected to generate for an operator across the whole time they remain active.
Use it when Use LTV for the value that customer returns over their lifetime.
Full definition of Lifetime Value (LTV) →The key distinction
- CPA is an upfront cost; LTV is revenue earned over the relationship.
- Profitable growth needs LTV to exceed CPA by a healthy margin.
- CPA is set by marketing efficiency; LTV is set by monetisation and retention.
Common questions
What's the difference between CPA (Cost Per Acquisition) and Lifetime Value (LTV)?
CPA is what it costs to acquire a customer; lifetime value is what that customer is worth over time. The two are judged together: acquisition only pays off when LTV comfortably exceeds CPA. CPA is the price of getting a player, LTV is the return on paying it.
What is CPA (Cost Per Acquisition)?
CPA is the marketing cost of turning one new person into a paying customer — the total acquisition spend divided by the number of new depositors it produced.
What is Lifetime Value (LTV)?
Lifetime Value is an estimate of the total net revenue a player is expected to generate for an operator across the whole time they remain active.
More term comparisons
Understanding, not advice. This explains how two terms differ so you can read the industry clearly. Nothing here treats gambling as a way to make money; the maths favours the house. 18+.