ARPDAU is calculated by dividing the total revenue generated in a day by the number of active users on that day. This metric is particularly useful for app developers and marketers as it offers a granular view of daily revenue performance. It includes revenue from various sources such as in-app purchases, ads, and subscriptions.
Importance of ARPDAU
ARPDAU is valuable for several reasons:
- It helps understand daily performance and how changes to the app impact revenue.
- It provides a real-time overview of revenue fluctuations following updates or changes.
- It’s instrumental in measuring the immediate impact of promotional events or advertising campaigns.
The formula for ARPDAU is straightforward:
ARPDAU=Total Active Daily Users / Total Daily Revenue
For example, if an app generates $1,000 in a day and has 500 active users on that day, the ARPDAU would be $2.
Application of ARPDAU
ARPDAU is particularly relevant in the mobile gaming industry, where it’s used to monitor and adjust monetization strategies for different player types. It’s a dynamic metric that can show how specific changes, like adjusting in-app purchase prices or modifying ad placements, affect daily revenue.
Limitations of ARPDAU
While ARPDAU provides valuable insights, it has its limitations:
- It only considers daily active users, which can lead to fluctuations in the metric.
- It’s a short-term metric and might not fully represent long-term monetization trends.