What’s ARPU (Average Revenue Per User)?
Being a vital metric for marketers, product managers, and executives, ARPU is a measurement that determines how much money mobile apps generate from a single customer on average. When you know the ARPU of your lowest and highest valued users, you can optimize your marketing activities based on which campaigns are performing well. Additionally, ARPU complements metrics such as cost per install (CPI) and cost per action (CPA). You can calculate ARPU as such:
Revenue generated in the previous month/number of users
Why is ARPU important?
ARPU provides insights to compare different campaigns and ad networks. This allows you to see the quality of the campaigns and determine ROAS. ARPU lets you understand the user base and see whether your pricing strategy is working.