Average Revenue Per Daily Active User (ARPDAU)

ARPU stands for Average Revenue per User, and it refers to the average amount of revenue an app generates from each active user. App growth teams that develop subscription or revenue-driven apps often include ARPU as a key performance indicator to measure their financial success. By calculating ARPU, you can determine the average amount of money you earn from each user. While ARPU takes into account the revenue earned from both paying and non-paying users, there is another similar metric used specifically for subscription-based apps. This metric is known as ARPPU (Average Revenue per Paying User), which only considers the revenue generated by users who have made a payment.

ARPPU, or Average Revenue Per Paying User, measures the average revenue generated by users who actually make payments within your app. Unlike ARPU which includes all users, ARPPU focuses exclusively on paying customers – providing a clearer picture of how much value your monetizing users deliver. This metric is essential for subscription apps, freemium games, and any business where only a portion of users convert to paying customers.

Daily Active Users (DAU) measures the number of unique users who engage with your app within a 24-hour window. This metric is essential for understanding your app's daily engagement levels and is particularly important for apps where daily interaction drives success, such as social media, gaming, and messaging platforms. DAU helps product teams assess user engagement, track campaign effectiveness, and identify patterns in user behavior.

LTV meaning, Lifetime Value (LTV), is a performance indicator used to evaluate the total earnings generated by a customer throughout their entire tenure of using a mobile application. Historical data on user retention rates is often used to estimate the expected duration of user engagement. Having knowledge of what is LTV and the average LTV of your customers is crucial for executing successful marketing strategies. LTV in marketing for mobile apps is normally used to optimize revenue streams such as subscriptions, in-app advertising, and in-app purchases by determining the amount of money that can be spent on user acquisition while still being profitable.

Subscription revenue refers to the income generated from a recurring payment model, where users pay a regular fee, often on a monthly or yearly basis, to access premium features, content, or services within the app.