What is ARPDAU – Average Revenue Per Daily Active User?Â
ARPDAU , or Average Revenue Per Daily Active User is the ARPU for a 24 hour period. This can also be used to observe how recent changes made to your app have changed your daily revenue.
ARPDAU (Average Revenue Per Daily Active User) is an essential metric in mobile app monetization strategies and for app publishers that want to optimize revenue growth. ARPDAU measures daily average user revenue generated, giving app publishers insight into whether their monetization strategies are working effectively and providing insights for making informed decisions that increase ROI.
Calculating ARPDAU
ARPDAU is calculated by dividing daily revenue by daily active users (DAUs). To do this, follow this formula:
ARPDAU = Total Daily Revenue​ / Daily Active UsersÂ
An app generating $1,000 in daily revenues with 10,000 active users would see its ARPDAU equal $0.10. It indicates that each active user generates $0.10 of revenues on average daily.
The importance of ARPDAU: By tracking this metric daily, ARPDAU gives app publishers an accurate picture of how much revenue each active user contributes on an everyday basis. It helps them pinpoint trends and patterns in user behavior that generate income, allowing them to optimize monetization strategies more effectively.
User engagement insights: A higher ARPDAU typically indicates strong user engagement, as engaged users tend to make in-app purchases, watch ads, or sign up for premium services more often than their non-engaged peers. Conversely, low ARPDAU could signal improvements needed with user engagement tactics.
Benchmarking and performance analysis: ARPDAU provides app publishers with a means for benchmarking the performance of various apps or periods. It helps marketers assess how changes in features, pricing strategies, or marketing campaigns impact revenue generation.
Investment decisions: For investors and stakeholders alike, ARPDAU serves as a vital indicator of an app’s financial health and growth potential. A steady increase in ARPDAU may attract investments as well as support business expansion plans.
Strategies to strengthen ARPDAU
Improved monetization models: Implementing multiple monetization strategies such as in-app purchases, subscriptions, and ad placement can increase ARPDAU. Offering exclusive content or features for an additional fee may also drive additional revenues.
Targeted advertising: Leveraging user data to deliver tailored ads can enhance relevance and engagement while driving up revenue for advertisers. Formats like rewarded videos that reward viewers can also help increase ARPDAU.
Retention: Engaging users through regular updates, engaging content, and loyalty programs is crucial in keeping users active and increasing revenue each day. Repeated purchases from retained users often account for greater daily contributions to revenue than new arrivals.
Events and Promotions Within an App: Running special events, sales, and promotions within apps can encourage spending among active users. By offering time-limited offers or seasonal discounts to enable them to buy items they might have put off purchasing before now, special events, sales, and promotions may increase spending among active users.
Conclusion
ARPDAU is an essential metric for understanding and optimizing mobile apps’ revenue potential. By tracking ARPDAU closely, app publishers can make data-driven decisions to enhance user engagement, refine monetization strategies, and ultimately drive higher revenues—leading to sustainable financial success and growth within an increasingly competitive mobile app market.