Average Revenue Per User for Apps: A Closer Look at ARPU

How to Caluculate Average Revenue Per User (ARPU)

Average Revenue Per User (ARPU) is the amount of revenue each of your active users (on average) contributes. Here’s the ARPU formula:

How to Increase ARPU

The two key app analytics to watch — and levers to use to increase ARPU — are

  • Number of app installs
  • Number of monthly active users
  • What do my user-level analytics tell me about what attributes my retained users share?
  • Do my monthly active users generate more revenue than the cost to acquire them? The attributes of your “best user” cohorts can be used for lookalike campaigns or referral programs. This can decrease cost of acquisition through designing more targeted and more effective campaigns.
  • Am I maximizing in-app marketing channels with in app messaging and a message center — and encouraging your users to share the app?
  • Subscription, in-app advertising, affiliate marketing, and in-app purchase models benefit from retaining app users over time.
  • What experiences can be tweaked or reimagined to improve mobile app monetization efforts and increase spend?

How to Calculate ARPU Metrics in Urban Airship Insight

The industry-specific dashboards and app analytics tools in Urban Airship Insight make it simple to get a high level view of ARPU — as well as the average revenue for a specific conversion event.

  • The average transaction value is $261.16, and
  • Taking into account all monthly active users, the average revenue generated was $96.13 per monthly active user.

In Conclusion

ARPU is a springboard to calculating the return on investment for your marketing efforts, so make sure you’ve got an easy way to keep a close watch on it — and let it drive action and experimentation to make sure you’re on track.

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