What is Average revenue per user (ARPU) in Mobile Marketing?

How is ARPU calculated?

ARPU stands for Average Revenue User. It helps us estimate the revenue each user brings in and is calculated by dividing total revenue by the total number of installs over a certain period of time.

For example if you had generated $1000 in revenue in a month, and had 500 users (or installs) for your app in that month - then your ARPU will be $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.