Mobile App Intelligence

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Average Revenue Per Paying User (ARPPU)

ARPPU stands for ‘Average Revenue per Paying User’, and it refers to the estimated revenue a single paying user generates during a specified period. Paying users are those who pay money for a service, either by subscribing, making in-app purchases, or paying for a download.

This metric removes those users who don’t actively spend any money during the app cycle (for example those who drive revenue for an app developer through engaging with ads). ARPPU is measured by dividing total revenues by the number of paying users. ARPPU is a useful measure to demonstrate how much loyal customers are willing to pay for a service, therefore validating a developer’s pricing model, and it can also highlight reactions to pricing decisions.

What is the difference Between ARPU, ARPPU, ARPDAU?

If you have anything to do with mobile apps and advertising, you’ll hear people talking about ARPU and ARPPU as they are two of the most widely used measurements of app revenue. See full article for more details.

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