Average Revenue Per Paying User (ARPPU)

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.

ARPDAU, or Average Revenue Per Daily Active User, measures the average revenue generated by each active user on a daily basis. This granular monetization metric is particularly valuable for apps expecting frequent user engagement, such as mobile games, social apps, and subscription-based services. Unlike broader metrics like ARPU, ARPDAU provides immediate visibility into how app changes, promotional events, or monetization adjustments impact daily revenue generation. ARPDAU stands for Average Revenue Per Daily Active User. It is a key performance indicator (KPI) that calculates the average amount of revenue an app generates from each user who actively engages with the app on a given day. This metric captures revenue from all monetization sources, including in-app purchases (IAP), subscriptions, and in-app advertising (IAA).

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.

Mobile app conversion rate (CR or CVR) is the percentage of users who achieve a specific goal within the app, such as making a purchase, creating an account, subscribing to a service, or completing a survey. Conversion rates are an important metric for mobile app developers and marketers as they indicate the effectiveness of the app in driving user engagement and achieving business goals. A higher conversion rate typically means that the app is successfully guiding users towards the desired action, while a lower conversion rate may indicate that there are issues with the user experience or the app's marketing strategy.

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.