[prostoalex]

The reasoning behind the ad campaign is that if the ad price multiplied by conversion is below LTV, it's worth it.

This seems to be fine in a market with few other competitors, but in heavily contested categories (e.g., SaaS) shouldn't you be multiplying that by customer churn? Seems a bit presumptions to assume that once a customer signs up, they're going to spend 100% of assumed LTV with you and you only.

[mdda]

LTV normally incorporates churn as part of the calculation. If it didn't then unless you have a time-value-of-money discount in there, the LTV of a customer would be infinite. Perhaps you're positing that the LTV refers to the actual physical Lifetime of a customer - but, statistically, that just turns into a churnrate too (sad to say, even 100% of a consumer's lifetime is more than a 0.5% churn rate spread across the whole population).

[prostoalex]

Thanks for the clarification, makes sense.