With so many different metrics, choosing what to track can get overwhelming. Although it’s probably not realistic or necessary for you to monitor each one, ARPDAU should definitely be on your list of metrics to track.
What is ARPDAU?
ARPDAU is an acronym that stands for Average Revenue Per Daily Active User. This metric reveals the average amount of money each individual user generated while using your app within a certain 24-hour time period.
The revenue could be from:
- In-app purchases;
- In-app ads;
- Any other app monetization strategies.
By revealing how much revenue each user generates, you can determine if your monetization strategies are working. You will discover:
- Which strategies are having the most success and should be focused on.
- Which strategies aren’t working and might need to be eliminated or replaced.
- If any recent changes to your monetization tactics produced favorable results.
Some changes you could make to your monetization plan include:
- Changing prices;
- Changing the location and timing of your in-app ads;
- Trying different types of ads.
How to calculate ARPDAU
The ARPDAU metric is pretty simple to calculate. You just divide total revenue earned during a 24-hour period by how many users were active in your app during that same 24-hour period.
Total Revenue in 24 Hours/Total Active Users in 24 Hours = ARPDAU
How to improve ARPDAU
If ARPDAU is too low, there are a few ways to improve it. Those ideas are listed below.
Implement rewarded video ads to your monetization strategy
This is an effective tactic for increasing revenue because these videos typically have higher CTRs than normal ads. They work so well because users are promised a reward in return for watching the video.
You also get to enjoy a reward in the form of payment each time a user responds to the ad.
Increase in-app purchases
Chances are most users don’t make purchases in your app. That’s just the way it is.
However, you can always work on getting more users to become paying customers. Here are several ways to go about that:
- Promote your products or subscription plan;
- Offer special deals that are customized to each individual user’s preferences;
- Remind users about your offers with push notifications;
- Make the checkout process easy and painless.
Change where you place your in-app ads
Putting ads in your app is a great monetization strategy, as long as you do it the right way. Obnoxious ads that negatively affect user experience will frustrate users. They will either ignore the ads or stop using your app.
Carefully consider the best time to present ads. Don’t let them pop up in the middle of a task or game level. Set the ads to appear when a user is between tasks. You should also set a limit for how many times a single user sees ads during one session.
Segment users based on behavior
Some users are going to make in-app purchases, while others won’t. Some users will spend more time on your app than others. The point is, your app will have different types of users.
Each category of users should be treated differently based on their typical behaviors. For example, users who need a little extra prompting to make a purchase should be offered a special deal.
ARPDAU is a very helpful metric to keep track of. It reveals how well your monetization strategies are working, which strategies need to be changed, and if your recent changes are making a positive difference. The sooner you start tracking this metric, the better.
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