What Is Average Revenue Per Daily Active User (ARPDAU)?
Average Revenue Per Daily Active User (ARPDAU) measures the average revenue generated by each active user on a daily basis. It's a common metric in app and game monetization, reflecting user engagement and revenue potential per day.
How Is ARPDAU Calculated?
ARPDAU measures the average revenue earned by a user over a single day and is calculated by dividing the total revenue with the total Daily Active Users (DAU). The total revenue will be the total of all revenue (i.e. ads, IAP（内购付费） and/or subscriptions).
At Tenjin, this metric is calculated using the following formula:
Ad Revenue / Number of users.
Why Is ARPDAU Important?
Advertisers use ARPDAU to understand the effectiveness of their app monetization efforts. It also helps in understanding if the revenue generated is coming from in-app advertisements (IAA) 或 IAP（内购付费）, or both. On the Tenjin dashboard this can be distinguished by the following metrics: Ad revenue/DAU, IAP revenue/DAU, Total revenue (i.e. IAP + Ad revenue)/DAU). ARPDAU is a very common and strong KPI for many advertisers as it allows them to monitor which changes made in the app are affecting the monetization and revenue growth.
How To Increase ARPDAU?
Monetization strategies can work most effectively when advertisers are able to iterate on the various approaches for generating revenue. Some of these approaches include:
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- Segmentation: Since all users who use your app are different, it is important to conduct a segmentation analysis of your users depending on their demographics, app usage pattern, etc, and group them accordingly. This way you will be able to iterate your monetization strategy per segment.
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- Game design and narrative: This approach is used to understand and identify at which points in the user flow users should be monetized, all the while keeping the user experience a priority. Most often this can be done via A/B testing.
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- Optimal ad placement and format: Most mobile games monetize through in-app advertisements (IAA), which means, every time a user interacts with an ad in your app, you make money. But this also means that you must find the optimal number of ads, and also the right ad formats (such as 激励广告, banner ads, 插屏广告, etc) that can be shown to increase revenue.
What Is a Good ARPDAU for Games?
This depends on the type of game you have, but on average hypercasual have $0.03, Casual games are $0.1 and mid-core games can go up to $0.3-$0.4. (资料来源)