- 20 Apr 2023
- 2 Minutes to read
Average Revenue Per Daily Active User (ARPDAU)
- Updated on 20 Apr 2023
- 2 Minutes to read
How is ARPDAU calculated?
ARPDAU stands for Average Revenue Per Daily Active User. It 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, in-app purchases (IAP) and/or subscriptions).
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) or in-app purchases (IAP), 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 my 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:
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.
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.
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 rewarded ads, banner ads, interstitial ads, 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. (Source
Another popular metrics is Ad Revenue per Daily Active Users, which is the average amount of ad revenue per DAU. At Tenjin, this metric is calculated using the following formula:
Ad Revenue / Number of users.