ARPU

April 22, 2016

 

Gaming companies typically measure ARPU as the total monthly revenue divided by the total numbers of subscribers. 

 

ARPU (Average Revenue Per User): This a metric used to measure how much a game is earning per player, usually on a monthly basis; in this case it is calculated by dividing the monthly revenue by the number of monthly active users.

 

ARPPU (Average Revenue Per Paying User) is a related metric that is calculated by dividing the amount of revenue by the number of players who paid anything at all. This can be applied to players who pay for a subscription as well as players that make in app purchases.

 

Another variation and related metric is ARPDAU – Average Revenue per daily active user - This is the average amount of money spent by the people who use the site on a daily basis.  Are they purchasing games? Making in game purchases? Buying subscriptions? etc.

 

An ARPPU or ARPDAU calculation will result in a larger number than ARPU. Some non-subscription players may be playing games via free trial sessions or may be logging on to games without making in-app purchases.

 

Understanding ARPU and related metrics is key to understanding how a gaming site is performing. Pacific ERP has experience providing custom data service integration and analytics for companies. For more information on how we can help your company use accurate data analytics to make informed business intelligence decisions.

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