Average Revenue Per User (ARPU)

July 6, 2018

The ARPU is average revenue per user and refers to the revenue that a monetized user helps you generate over a period of time – usually a month or a year.

The Importance of ARPU

The importance of this measurement is that it reflects your brand’s ability to generate revenue, which impacts the health of your organization and the future of your brand.

How to Calculate ARPU

In order to properly calculate the Average Revenue Per User (ARPU), you divide the total revenue within a standard time period by the total number of monetized users.

Related Terms to ARPU

  • A related term is the ARPPU or Average Revenue Per Paying User, which is calculated by dividing up the revenue among all the users who paid. The resulting number will be much larger than the ARPU.
  • Another related term is the ARPDAU or Average Revenue Per Daily Active User, which refers to revenue generated by a customer who actively engages with your mobile app on a daily basis.

Read More About ARPU

L’Oreal doesn’t depend on its stores to sell beauty products. It has an augmented reality app called Makeup Genius which ...
Calculating the ROI for mobile app marketing has always been complicated because of so many moving parts. For the most ...
The secret to acquiring and retaining users is simple: understand their value.  Knowing the value of your users helps you ...
Back to Glossary
Related Keywords
Organic Traffic

Organic traffic is basically the number of visitors that come to your website due to the content ...

Read More
Bounce Rate

Bounce rate is the percentage of visitors who navigate away from a particular website after viewi...

Read More
Customer Lifetime Value (CLTV or CLV)

Customer lifetime value (CLTV or CLV) is also known as lifetime value (LTV), and refers to the pr...

Read More
Session Interval

A session interval is the amount of time that elapses between two consecutive sessions of a custo...

Read More

8,000+

$2 Billion

1 Billion

20 Million