This post is co-written with Suhyoung Kim, General Manager at KakaoGames Data Analytics Lab.
Kakao Games is a top video game publisher and developer headquartered in South Korea. It specializes in developing and publishing games on PC, mobile, and virtual reality (VR) serving globally. In order to maximize its players’ experience and improve the efficiency of operations and marketing, they are continuously adding new in-game items and providing promotions to their players. The result of these events can be evaluated afterwards so that they make better decisions in the future.
However, this approach is reactive. If we can forecast lifetime value (LTV), we can take a proactive approach. In other words, these activities can be planned and run based on the forecasted LTV, which determines the players’ values through their lifetime in the game. With this proactive approach, Kakao Games can launch the right events at the right time. If

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