ARPDAU (Average Revenue Per Daily Active User)

Are you launching a new mobile game or remodeling your existing design? Given the competitive market of today, you must ensure that your games are generating revenue along with impressing their users. How can you keep an eye on that? Enter ARPDAU, easing your monetization. 

Average revenue per daily active user or ARPDAU, is a key performance metric (KPI) used to calculate app monetization for every active user per day. This technique of measurement is important to identify when and if changes to an app begin to affect its ability to monetize its consumers. Let’s learn more about ARPDAU!

 

What is ARPDAU

ARPDAU is a metric that enables marketers and app developers to learn and visualize your app’s monetization possibilities in real-time, down to the most minute detail.

ARPDAU uses the revenue generated from in-app purchases to calculate the daily revenue received per active user of the app. 

Regardless of whether your app has gone under changes or not, ARPDAU gives you a complete view of your application’s revenue and how it will fluctuate when you initiate changes. 

For example, let’s consider that your application offers premium users certain perks. You decided to reduce the paid version’s price to attract more subscriptions. Using ARPDAU, you can see if the decreased price actually boosts your paid subscriptions and cash flow. 

Using this metric benefits app developers because:

  • Frequent analysis ensures you are maximizing your monetization efforts.
  • Your advertising strategy is visible and balanced, as evidenced by your ARPDAU.

 

How to calculate ARPDAU

ARPDAU metric is generally used in many different ways. One popular approach is for user acquisition strategies, 

  • You can measure ARPDAU and how it fluctuates normally.
  • It can help in segmenting your users by source for your campaigns.
  • It can help discover which applications and ads perform best in your game. 

You can calculate ARPDAU using a simple mathematical formula.

 

ARPDAU Formula

The formula to calculate ARPDAU is,

ARPDAU = Total daily revenue / Total active daily users

For instance, you have a successful gaming application with 12 million daily users that generates $ 6 million in a day. Your mathematical formula will look like, 

ARPDAU = 6 Million / 12 Million users

When calculated your ARPDAU will be 50 cents. This means each active user, on average, is spending 50 cents a day on your gaming app. 

 

ARPDAU vs. ARPU

ARPU and ARPDAU, both are metrics utilized to monetize the revenue of your application. The only difference, however, is that ARPU calculates the revenue generated by a user, while the later one focuses on the revenue generated daily per user. 

ARPU, or average revenue per user, is used to monitor the credibility of advertising vendors and campaigns. You can calculate it by dividing the total revenue of the app by its total users. It is mainly useful for long-term strategy and comparing the effectiveness of advertising campaigns by identifying high-value users.

On the other hand, ARPDAU shows the app provider how much revenue is generated in a single day by users who actively use and engage with an app. It gives a granular view of daily engagement and monetization. 

 

ARPU

ARPDAU

Total revenue divided by the number of installs. Revenue generated by users actively engaging with the app in a single day
Typically measured over longer periods (e.g., monthly, yearly). Measured on a daily basis.
Helps in long-term strategy and investment decisions. Useful for short-term adjustments and pricing strategies.
Important for understanding the overall revenue potential from the entire user base. Important for assessing the active, engaged user base’s contribution to daily revenue.
ARPU = Total revenue / Total users ARPDAU = Total daily revenue / Total active daily users

Both of the above metrics are useful, and it depends on your context to determine which one is suitable for you. If you’re looking to analyze overall app performance and guide long-term investments, ARPU is an ideal metric for you. If, however, you are looking to make short-term adjustments, ARPDAU is preferable for you. 

 

Conclusion

In conclusion, ARPDAU is a key metric tool to monetize your application performance. Daily calculation of the revenue per user of your app, you can understand the adjustments in a better way. Plus, it will give you an overall view of how well your application is performing for users. As an app publisher or marketer, ARPDAU is a key to monetization’s success.