What is ARPDAU?
ARPDAU is the abbreviation for average revenue per daily active users, an important KPI metric in programmatic advertising. It helps publishers to understand how much their daily active users contribute to their app, website, or games revenue. ARPDAU includes income from multiple sources, such as ads, in-app purchases, and paid subscriptions.
How to calculate ARPDAU?
ARPDAU= Total revenue of a given day / Total active users on the same day
- Total revenue per day is an app's revenue from multiple resources like subscriptions, in-app purchases, and ads.
- Total active users are the number of users interacting with an app even when they do not see the ads or buy in-app offers.
Why ARPDAU is crucial for publishers
ARPDAU is an essential metric for calculating ad revenue, thus, the success of a brand. It helps publishers considers to measure the daily revenue potential and,
- Analyze the app performance on daily parameters.
- Understand how well newly-implemented strategies work.
- Get a 360-degree view of the income your app generates every day.
- Get valuable insights and data to make decisions on improving performance and implementing further plans.
What are the top usages of ARPDAU for app publishers?
ARPDAU is helpful for app publishers in many ways, including the most popular approach to building better user acquisition strategies. Here's how:
- Measure ARPDAU and understand how frequently it changes along with an increase in daily active users.
- Identify the sources and segment the users as per the source while boosting your user acquisition campaigns.
- The data ARPDAU helps publishers to discover which ads, networks, or apps drive higher revenue.
How to increase ARPDAU?
Following are the proven ways to increase ARPDAU:
- Integrate rewarded video into your app ecosystem.
- Redirect viewers towards in-app purchases and encourage them to make a purchase.
- A high-end user experience is the best way to increase ARDDAU, which you can achieve with robust A/B testing.