ARPU (Average Revenue Per User)

Author

What’s ARPU (Average Revenue Per User)?

Being a vital metric for marketers, product managers, and executives, ARPU is a measurement that determines how much money mobile apps generate from a single customer on average. When you know the ARPU of your lowest and highest valued users, you can optimize your marketing activities based on which campaigns are performing well. Additionally, ARPU complements metrics such as cost per install (CPI) and cost per action (CPA). You can calculate ARPU as such:

Revenue generated in the previous month/number of users

Why is ARPU important?

ARPU provides insights to compare different campaigns and ad networks. This allows you to see the quality of the campaigns and determine ROAS. ARPU lets you understand the user base and see whether your pricing strategy is working.


RELATED TERMS

Attribution Window

What’s an attribution window? An attribution window is a period during which publishers request credit for conversion and be attributed for the install. Advertisers set the time, and

Read More »

CPM (Cost Per Mille)

What is Cost per Mille (CPM)? Cost per mille (CPM) is a pricing model in which advertisers pay per thousand impressions of their ads. “Mille” is the Latin

Read More »

CHURN RATE

What is the churn rate? The churn rate shows the number of users who stop using or uninstall an app within a given period. It is the opposite

Read More »

Have an inquiry? Drop us a line.