Average Revenue Per Daily Active User (ARPDAU)
What Is ARPDAU
ARPDAU stands for average revenue per daily active user. It's a key metric for determining how much money your app is making from each daily user. If it's increasing over time, that means you're making more money from each user and growing your business. If it's decreasing, you may need to make changes to boost revenue, like introducing a subscription model, better targeting your ads or improving your in-app purchase options.
Why ARPDAU Matters for Mobile App Success: Benefits
Increase Revenue
With a higher ARPDAU, you'll see more money flowing into your bank account each day from your app. This adds up quickly and means more resources to improve your app and scale your business.
Better Retention
When users are spending more in your app, they're engaged and sticking around. ARPDAU is closely tied to retention rates, which is key for long term success. Loyal, paying customers will keep coming back and driving your revenue up.
Opportunity for Growth
Once you know your ARPDAU, you can work to improve it through personalization, in-app experiences, and targeted offers. Even small increases, like $0.10 or $0.20 per day, can significantly impact your bottom line over time. Growth is the goal, so track your ARPDAU and make continual optimizations.
Valuable Data
Your ARPDAU gives you insight into how well your monetization strategies are performing. You'll see which in-app purchases, plans, and experiences are generating the most revenue so you can double down on what's working. The data doesn't lie, so let your ARPDAU guide strategic decisions.
Competitive Advantage
If your ARPDAU is higher than comparable apps, you have a key point of differentiation. This can help attract more loyal users and catch the interest of investors, who will see the revenue potential. Leverage your ARPDAU as a selling point for your app.
How to Calculate ARPDAU
To calculate your app’s ARPDAU, you’ll need to gather some key metrics. First, determine your daily active users (DAU) over a selected time period, like the past 30 days. Your DAU is the number of unique users who engage with your app each day.
Next, figure out your total revenue from in-app purchases over the same time period. Add up all the money spent by users on subscriptions, virtual goods, and other in-app items.
Finally, divide your total revenue by the number of DAUs. For example, if you had 200,000 DAUs over the past month and earned $2 million in revenue, your ARPDAU would be $2 million / 200,000 = $10.
ARPDAU = Total daily revenue / Total daily active users
An ARPDAU of $10 means that on average, each of your daily active users is generating $10 of revenue per day for your business. The higher your ARPDAU, the more valuable each user is to your app.
Of course, your ARPDAU will vary over time based on factors like:
Seasonality: Revenue and user numbers often spike around holidays.
New features: Adding new experiences like referral programs, subscriptions, virtual goods, or other paid features will increase ARPDAU.
User demographics: Some segments of your audience may spend more than others.
How to Improve Your App's ARPDAU
To give your app’s ARPDAU a boost, focus on optimizing the experience for your daily active users.
Offer promotions and discounts
Run sales, coupons, and special offers exclusively for daily users. Giving them an incentive to spend more time and money in your app will directly impact your ARPDAU.
Streamline the purchase process
Make it as easy as possible for customers to go from browsing to buying. The less friction in your purchase flow, the more likely daily users are to complete a transaction.
Personalize recommendations
Use data about what your daily active users view and buy to provide personalized product recommendations. Tailored suggestions are more likely to lead to a purchase, especially from loyal customers.
Reward loyalty
Implement a loyalty program that gives daily users points or perks for frequent use and purchases. This makes them feel valued and gives them another reason to keep coming back to your app. Rewarding your most loyal and highest-spending customers will have the biggest impact on your ARPDAU.
Optimizing your app experience for daily active users is key to improving your ARPDAU over time. Focus on keeping these loyal customers engaged and making repeat purchases to increase how much revenue each user generates per day. While new user acquisition is important too, your dedicated daily customers will have the biggest lifetime value for your business.
