Definition
ARPU (Average Revenue Per User)
ARPU measures the average revenue generated per active user over a specific period. It helps evaluate monetization efficiency and guides pricing and feature decisions.
ARPU (Average Revenue Per User) is calculated by dividing total revenue by the number of active users in a period. It's a crucial metric for understanding your monetization effectiveness.
Improving ARPU involves optimizing pricing, improving paywall conversion, reducing churn among paying users, and upselling to higher tiers. Segmenting ARPU by acquisition source helps identify your most valuable user channels.
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Related Terms
App Revenue
App revenue is the total income generated by your app through downloads, in-app purchases, subscriptions, and advertising. It's the ultimate measure of your app's commercial success.
Lifetime Value (LTV)
LTV estimates the total revenue a user will generate throughout their relationship with your app. It's the key metric for determining how much you can spend to acquire users profitably.
Subscription Pricing
Subscription pricing is a monetization model where users pay a recurring fee to access an app's features or content. It's the dominant revenue model for non-gaming apps.
Further Reading
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