What is ARPU, ARPPU, ARPDAU and more?
In 2022, mobile apps are viable businesses. If the publisher in you is looking to be effective and stay profitable, you need to grasp your stats. The number of installs is one of the most significant KPIs to track. Apps are a volume business, and more installs will correspond to an increase in your user base.
But the question remains: how can you know if your app is serving the demands of your users? It may be cumbersome to discover this information. There are several methods for calculating a user’s worth. Here, we’ll look at ARPU – average revenue per user, ARPPU – average revenue per paying user and ARPDAU, or average revenue per daily active user, and similar metrics you need to know.
ARPU
ARPU, or Average Revenue per User, tells you how much you make on average and works best compared to other data, such as marketing spending. If a $100 ad campaign gives your app 2,000 new users, each of whom is worth a buck, this investment is worthwhile. However, if you’re only making a few cents for each user, it is high time you make some changes within your app.
ARPU alone can help you analyze your apps performance. But it makes a whole lot of sense when you compare this metric with ARPPU.
ARPPU
ARPPU is Average Revenue Per Paying User. Whereas ARPU considers an app’s average revenue across all installs, ARPPU only considers the revenue generated by paying users.
ARPPU – was intended to measure applications with a monthly subscription model, but it has since become the most frequent means of assessing the revenue earned by ‘freemium’ games and apps with in-app purchases. With so many applications now using the freemium model, ARPPU has become a vital tool to assess how the users – those who spend money – interact with the app. By distinguishing ARPPU and ARPU, you may better your understanding of your paying user and their worth to your app or game.
ARPDAU
ARPDAU, or Average Revenue per Daily Active User, assists you in analysing the outcomes of app upgrades, campaigns, or promotional events and can provide you with a more comprehensive picture of your revenue. ARPDAU is one of the most significant KPIs to monitor when analysing data to learn more about your consumers’ behaviour.
ARDPAU differentiates from ARPU and ARPPU such that ARPU covers all users who have installed and utilized the app, but ARPPU does not. If they have made at least one payment, they have ARPPU. ARPDAU focuses on players that have actively interacted with your game on a daily basis.
Other KPIs to consider are retention rates, which relate to how many users return to your application and churn rate, which refers to how soon users leave your app. Here are some more stats to look into:
Monthly active users (MAU)
This metric indicates the total number of users who visit an app for 30 days. MAU assists app developers in determining the popularity of their apps.
Cost per acquisition or action (CPA)
This marketing statistic calculates the total cost of acquiring one paying user at the campaign or platform level.
Cost per install (CPI)
The advertiser agrees to pay the publisher a specified amount each time a user installs their application.
Lifetime value (LTV)
This key statistic in mobile company growth helps assess how valuable a user is throughout their app usage.
How can ARPDAU be increased?
This measure is affected by a variety of elements in your app. There are in-app features, such as traffic drivers or reminders to persuade users to view a rewarded video or pay an IAP (in-app purchase), as well as the costs and variety of in-app purchases. Then, consider the ads served in your app. Look for where they get placed, how frequently they appear, what type of ads those are, and how relevant they are to your users. Third, there are external influences such as weekdays and particular holiday times.
Let’s take a closer look at techniques you could use to boost your ARPDAU.
- Include rewarded video advertising in your app.
- Select the appropriate ad formats
- Run A/B tests on ad placements in your app.
- Encourage non-paying users to purchase IAPs.
- Strive to retain users
- Collaborate with ad mediation providers like AdPumb for effective app monetization.
Bottom Line:
We’ve discussed a variety of indicators that may help you measure the app performance, and ARPU and ARPDAU figures are among the most critical for your app monetization journey.
At AdPumb, we urge you to make data-driven business choices because having enough data and tracking the proper metrics will give you leverage and help you decide which adjustments you need to make for your app to flourish.
