Definition

Average Revenue Per User (ARPU) measures the average revenue generated from all users. This includes total revenue from subscriptions and non-renewing purchases.

One of the main goals of any mobile business is to maximize revenue. ARPU is one of two critical values for calculating your ROI, along with CPI (cost per install).

Knowing the ARPU of different groups of users allows you to optimize your marketing efforts and focus on high-performing user acquisition campaigns. ARPU-driven measurement helps identify which media sources bring the top-paying users and which are underperforming and should be stopped.

Understanding who your high LTV users are can help you find more like them through lookalike campaigns, leading to increased total app revenue.

Segments

Segment By

There are various segments that can be applied to the chart: Installation Period (segment by day, week, month, quarter, or year), country, platform, etc.

Note that segmentation by the Subscription metrics is not available in the ARPU chart: Product, Paywall, Base Plan. Consider using ARPPU, ARPAS charts instead.

Calculate using Sales or Proceeds

You can choose whether to calculate ARPU using Sales (after refunds) or Proceeds (after refunds, store commissions, and VAT).

Cohort Period

Default value - Max. This indicates the number of days (0-365) or Max (no limitation). Day 0 is the 24 hours from the moment when a user installed the app. Day 1 is the next 24 hours, and so on.

This setting can be used to understand the average revenue up to the Nth day of a user's life. This helps estimate when paid installs are paying off. For example, if ARPU for new users by Day 3 is $0.1, this means that an average user brings $0.1 by the 4th day of their lifetime.

Calculate users by events

• App Installs – count all app installs within the selected cohort for ARPU calculation. For example, if there are 100 new users that installed the app within the selected period, and these users have paid $10 by now, ARPU is equal to $10 / 100 = $0.1 per user.
• Trial started – calculate average revenue only among those new users who have started a trial. For example, if there are 100 new users that installed the app within the selected period and 50 of them have started a trial, and these users have paid $10 by now, ARPU is equal to $10 / 50 = $0.2 per trial user.