What is Average Revenue Per User (ARPU)?
Average Revenue Per User (ARPU) is a metric used to estimate the average amount of revenue each user brings in.
How Do You Calculate ARPU?
Divide the total amount of revenue by the total number of installs over a period of time.
Example: you generated $1000 in revenue in a month, and had 500 users (or installs) for your app in that month. Your ARPU is $2.
Why Is ARPU Important?
ARPU is a very common KPI used by advertisers for any type of app since it informs them about the revenue that can be attributed to each user in a given time period.
This information is crucial for marketing and user-acquisition (UA) teams as it allows them to create more efficient monetization strategies depending on the cohort of users that generate the highest revenue.
What Is The Difference Between ARPU And ARPDAU?
ARPU looks at the average revenue generated by all users of the app, while ARPDAU considers the average revenue generated by each daily active user. ARPU is a broader measure of the average revenue generated by a single user over a longer period of time.
What Are The Benefits Of ARPU?
The main benefit of using APRU is that it enables app developers and marketers to track the overall performance of their apps in terms of the revenue they generated. By calculating ARPU, app developers are able to look at trends and patterns in user behavior and revenue generation and use this information to make more informed decisions.