What is ARPDAU?

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.

Calculating ARPDAU

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.