What is ARPU?

Average revenue per user, or ARPU, is the measure of revenue divided by the number of users. The revenue total includes all app monetization sources: in-app purchases and earnings from ad units. This measurement allows developers to evaluate the current state of their app as well as find new growth opportunities.

Why is ARPU important?

Average revenue per user can be used to optimize marketing campaign performance. Breaking down the ARPU by each marketing channel and source can help increase ROI. The metric is also commonly shared with investors. Companies like Facebook and Snap routinely share their ARPU figures in earnings reports. The figure allows investors to get a read on the health and growth of a company.