- Average Revenue Per Daily Active User (ARPDAU) is an important metric in measuring the success of a mobile app.
- Go through this blog post to understand the importance of ARPDAU and discover ways of increasing it.
If you’re an app publisher or app developer, we’re sure you’ve heard of ARPDAU many times in your industry. As much as it is a buzz word in the world of apps and app development, here is everything you need to know about ARPDAU, from its full form to tips to increase it to drive app revenue.
What is ARPDAU
ARPDAU or Average Revenue Per Daily Active User is a key metric used in mobile app development to calculate the revenue generated by each daily active user (DAU) on average.
ARPDAU is an important metric because it helps in determining the success of the monetization strategies that your app is using in that it tells you how much your app users are responding to the strategies.
To calculate the ARPDAU for any given period, you can use the following formula:
ARPDAU = Total revenue made in a given period / Total DAU during the period
For example, if your app generates $10000 in a day and there were 1000 daily active users on your app on that day, then the ARPDAU is $10 ($10000 divided by 1000).
Importance of ARPDAU
ARPDAU is a useful metric for understanding the overall revenue performance of a mobile app or game and for comparing performance over time or between different apps or games. It can also be used to identify trends and opportunities for increasing revenue, such as through changes to pricing, monetization strategies, or user engagement tactics.
Here are some reasons why you must calculate ARPDAU:
- Revenue measurement: ARPDAU provides a way to measure the revenue generated by each daily active user, which can help businesses to understand their overall revenue performance and identify opportunities for revenue growth.
- User engagement measurement: ARPDAU can also help measure user engagement and retention. If ARPDAU is increasing over time, it may indicate that users are becoming more engaged with the app or game and are more likely to continue using it.
- Monetization optimization: ARPDAU can be used to optimize monetization strategies, such as adjusting pricing, introducing new in-app purchases, or implementing new advertising methods.
- Competitive benchmarking: ARPDAU can be used to compare the performance of a mobile app or game against its competitors. By tracking ARPDAU over time, businesses can assess the impact of changes made to the app or game and benchmark their performance against others in the market.
- Business growth and valuation: ARPDAU is a critical metric for investors, stakeholders, and potential acquirers when evaluating the financial performance and growth potential of an app or game. A high ARPDAU indicates strong revenue potential, user engagement, and market demand, making the app or game more attractive for investment or acquisition opportunities.
Are you looking to increase the ARPDAU of your mobile games?
You can also leverage ARPDAU to reap the following benefits:
- Segment ARPDAU by the source where a user is coming from and to know how your app is being downloaded.
- Understand which parts of your app, for instance, daily rewards, in-app purchases, etc., are performing well in terms of revenue.
- Understand which monetization strategy is delivering the most response.
- Analyze the impact of changes like new ad placements and features on the revenue.
All this information empowers you to make well-informed decisions concerning your app monetization strategies.
13 Best ways to increase ARPDAU
By now you know that ARPDAU is a crucial metric in measuring the success of your app. So you might as well try to increase the ARPDAU by implementing a few known strategies that have worked in the past.
Here are some ways to increase ARPDAU of your app:
Users can contribute to your app in various ways depending on their behavior and preferences. Because of this, it's critical to categorize and handle each group of users separately. Use in-app and push notifications to interact with user cohorts. Consider sending a notification about a new feature or an additional discount to a user who hasn't opened your app in a while.
A/B testing ad placements and formatsimprove ARPDAU with A/B Testing
You can find effective solutions by testing and iteration. Test the timing, frequency, and formats of your ad placements to determine how often you should run ads without hampering user experience. Mobile games should specifically address this way of increasing ARPDAU.
Encouraging in-app purchases
A successful revenue method for gaming apps is in-app purchases. An effective tactic would be to show users who have not purchased in-app purchases a sample of it through rewarded video advertising. This will give them a taste of what they're losing out on and nudge them towards future purchases.
Utilize in-app advertising
If applicable, incorporate in-app advertising to monetize your app. Display interstitial ads, native ads, or rewarded videos to provide value to users while generating revenue.
Using in-app bidding
In-app bidding, as opposed to the conventional waterfall structure, is increasingly the preferred choice for app developers. It operates using real-time auctions where several advertisers bid on the app's ad space, and the highest bidder wins. It is the mobile app equivalent of header bidding. You can obtain the highest payment for each user impression thanks to the automated nature of the entire procedure.
Implement targeted advertising
Use targeted advertising to show relevant ads to your users. Advertisements that align with user interests and preferences are more likely to generate engagement and conversions, leading to increased ARPDAU.
Using rewarded video adsBoost ARPDAU with Rewarded Video Ads
Rewarded video advertising boosts user engagement, which raises ad sales. Because they provide users with something of value, these interactive advertising ensure a higher click-through rate and encourage users to stick with your app. More in-game lives and currency are two examples of rewards in casual games. For more targeted ads that can significantly increase your ad revenue, you can join a video ad network.
Improving user experience
A good user experience can lead to increased user engagement and longer usage times, which can ultimately translate into higher ARPDAU. Especially for games, focus on making your game more enjoyable, challenging, and rewarding for players.
Offering in-game promotions
Mobile game promotions, such as discounts on virtual goods or limited-time offers, can encourage players to spend more money in the game. Make sure these promotions are well-timed and relevant to your players.
Personalizing the game experience
Personalizing the game experience based on a player's behavior and preferences can increase app engagement and retention. This can be achieved by using data analytics to understand player behavior and offering personalized game content and promotions.
Optimizing pricing and monetization
Evaluate your pricing strategy and consider adjusting prices or introducing different price points to cater to a wider range of users. Experiment with different monetization methods, such as freemium, ads, or a combination, to find the most effective approach for your app.
Optimizing user acquisition and retention
Focus on acquiring high-value users who are more likely to generate revenue. Implement user acquisition strategies such as targeted mobile app advertising campaigns, app store optimization, and influencer partnerships. Additionally, invest in retention efforts to keep users engaged and encourage repeated app usage.
Soliciting user feedback and iterate
Regularly seek feedback from your users and implement improvements based on their suggestions. Continuously iterate and enhance your app based on user insights to increase satisfaction and encourage spending.
Explore the power of In-app advertising today!
Increasing ARPDAU requires a data-driven approach, monitoring and analyzing user behavior, and refining monetization strategies based on insights. By focusing on increasing ARPDAU, developers can drive revenue growth, improve user satisfaction, and position their app or game for long-term success.
Stay tuned for more information on optimizing your publishing business and don’t forget to share this content with your fellow publishers.
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