What is ARPDAU?
Average revenue per daily active user - defines how much revenue each app user brings in on a daily basis.
Average revenue per daily active user (ARPDAU) defines how much revenue each app user brings in on a daily basis. This metric helps apps to understand the performance of their monetization strategy as well as user-level impacts.
Why It Matters
ARPDAU can be used to identify an app's revenue per user. Striking the right balance between cost and profit is non-negotiable for an app's long-term profitability. Monetization managers use this metric to understand which revenue streams have the highest impact, how these fluctuate over time, and how to optimize performance. UA managers can identify the most profitable users according to channel and campaign.
How to Calculate
ARPDAU is calculated by dividing your overall revenue (or revenue from specific streams) by your daily active users. For example, if an app earns $50,000 of revenue on a given day and has 500,000 daily active users, the ARPDAU is $0.10.
Industry Benchmarks
| Category | Average | Good Performance |
|---|---|---|
| Gaming Apps | $0.05 - $0.15 | $0.20+ |
| Social Media Apps | $0.02 - $0.08 | $0.12+ |
| Utility Apps | $0.01 - $0.05 | $0.08+ |
Best Practices
To increase ARPDAU: optimize ad placement for visibility, encourage advertisers to pay higher CPIs for valuable inventory, increase ad conversion rates, add second ad placements when successful, and expand to high-ARPDAU GEOs for your vertical.
Examples
A monetization manager might track ARPDAU by revenue stream (in-app purchases vs advertising). UA managers use ARPDAU alongside retention rate, ROAS, and LTV to identify the most profitable user acquisition channels and scale successful campaigns.
Notes
ARPDAU varies considerably depending on GEO and vertical. Monitor alongside ARPDEU (Average Revenue Per Engaged User) to understand user reach within your app. The bigger the difference between ARPDAU and ARPDEU, the smaller an ad's exposure is in the app.