What is LTV games?

In mobile gaming, Lifetime Value (LTV) is a prediction of the profit margin a game developer will earn from an average user during the entire time they play their game.

What does LTV stand for in apps?

Lifetime value, or LTV for short, is a core metric in mobile business growth, often used to determine how valuable a user is over the span of time that they're using an app.

What is a good LTV for mobile game?

A typical retention rate for a successful Word game follows Day 1: 40% Day 7: 20% Day 28: 10%. Since retention is a key component of LTV and the goal is to have a larger LTV than CAC, one should first go deeper by analyzing who plays the game before making any changes to the product.

How can I improve my LTV game?

What is the average LTV for casual games?

On average, hyper-casual games in the US have an LTV of $0.60 - $1.50 - the more popular games on this scale achieved a higher LTV by optimizing their monetization strategy and improving retention.

Understanding LTV, the most important KPI in gaming w/ Lloyd Melnick

What is a safe LTV?

Generally, a good LTV to aim for is around 80% or lower. Managing to maintain these numbers can not only help improve the odds that you'll be extended a preferred loan option that comes with better rates attached.

What is a healthy LTV?

Ideally, the LTV/CAC ratio should be 3:1, which means you should make 3x of what you would spend on acquiring a customer. If your LTV/CAC is less than 3, it's your business sending out a smoke signal!

What happens if LTV is too high?

If your LTV ratio is too high, taking out a mortgage loan will also be more expensive. By making a small down payment, you'll need a bigger loan. In addition to paying PMI, you'll probably pay more interest. A high LTV ratio can prevent a homeowner for qualifying for a refinance loan.

Why is my LTV so high?

A “high-LTV” loan means you're making a lower down payment. It also means you're borrowing more money, so your mortgage payment will be higher and you'll need to prove you have enough income to qualify for the loan.

Does LTV go down over time?

PMI payments are required until the LTV ratio is 80% or lower. The LTV ratio will decrease as you pay down your loan and as the value of your home increases over time. In general, the lower the LTV ratio, the greater the chance that the loan will be approved and the lower the interest rate is likely to be.

What is the highest LTV possible?

For a home mortgage, the maximum loan-to-value ratio is typically 80%. Higher loan-to-value ratios may require a borrower to purchase insurance to protect the lender or result in higher interest rates.

Is a 85% LTV bad?

The higher your LTV ratio, the higher your interest rate will typically be, making 85% mortgages a relatively forgiving option. They occupy a space which doesn't entail either overly-demanding repayments, nor require an unreachable deposit sum.

Is 50% LTV good?

A 50% LTV mortgage is at the low end of the typical range – usually, lenders offer LTVs between 50% and 95%. With a 50% LTV, lenders are taking on less of a risk, so you'll have a wide range of competitive options to choose from, with better deals and a lower total cost than you would with higher LTVs.

Why is LTV so important?

Why customer lifetime value matters. Customer lifetime value is important because it allows you to maximize the value of every customer relationship. This means that you're providing a better customer experience that keeps people around for longer, which can also help improve the quality of your products and services.

How do I increase my LTV for an app?

Drive New Referrals and Offer Discounts

Discounts positively affect both monetization (ARPU) and retention to boost LTV. Discounts encourage existing users to return to your app and give them extra incentive to convert.

How important is LTV?

LTV is important because it determines how much your mortgage will cost you. The LTV and equity are the main drivers for price, so as your equity increases, you begin to qualify for better deals. The lower the LTV, the lower mortgage rates are. Lenders take this into account when offering a mortgage deal.

How does LTV work?

The loan-to-value (LTV) ratio is a measure comparing the amount of your mortgage with the appraised value of the property. The higher your down payment, the lower your LTV ratio. Mortgage lenders may use the LTV in deciding whether to lend to you and to determine if they will require private mortgage insurance.

What is a good and bad LTV?

As a general rule of thumb, your ideal loan-to-value ratio should be somewhere under 80%. Anything above 80% is considered a high LTV. There are plenty of mortgages available for people with LTVs at 80%, 90%, or even 95%, but you'll be paying much more on interest.

What are the benefits of high LTV?

Borrower Benefit

Reduced monthly principal and interest payment. Lower interest rate. Shorter amortization term. More stable mortgage products, such as moving from an adjustable-rate mortgage to a fixed-rate mortgage.

How can I reduce my LTV?

There are two ways to reduce your LTV: saving up a larger deposit or reducing the amount of money you need to borrow.

What are the disadvantages of LTV?

When your LTV ratio is significantly above 80%, it can be a disadvantage. With a high LTV ratio, you might not qualify for the best interest rates and loan terms, and your lender may require you to pay for PMI — both of which can increase your monthly costs.

Is it better to have a higher LTV?

Broadly speaking, a low loan-to-value ratio is good, and a high ratio is less desirable. Use our Mortgage Calculator to find out how much you could borrow, how much it might cost a month and what your loan to value ratio would be.

What does 80% Max LTV mean?

The loan-to-value ratio is the amount of the mortgage compared with the value of the property. It is expressed as a percentage. If you get an $80,000 mortgage to buy a $100,000 home, then the loan-to-value is 80%, because you got a loan for 80% of the home's value.

Is a 75% LTV good?

A 75% LTV mortgage is at the lower middle end of the typical range – usually, lenders offer LTVs between 50% and 95%. With a 75% LTV, lenders are taking on less of a risk, so you'll have a wide range of competitive options to choose from, with better deals and a lower total cost than you would with higher LTVs.

Is 95 LTV bad?

As 95% LTV mortgages are seen as being higher risk to lenders, they typically attract higher interest rates than lower LTV alternatives. This means you will end up paying a higher monthly repayment and a greater amount across the lifetime of the mortgage.