Mobile User Acquisition

What is Average Revenue Per User (ARPU)?

ARPU measures the average revenue generated per user over a specific time period, reflecting monetization efficiency across your user base.

Average Revenue Per User (ARPU): Full Definition

Average Revenue Per User (ARPU) divides total revenue by total active users in a given period. For mobile apps, ARPU is typically calculated over daily, monthly, or cohort-based windows. It captures the average monetization value of each user and is a key input into LTV projections.

ARPU is often segmented by acquisition source to reveal which channels bring higher-value users, a direct link between UA creative strategy and monetization. Creatives that accurately represent the product's core value tend to attract users with higher ARPU because they arrive with appropriate expectations and intent.

For free-to-play games, ARPU is dominated by a small percentage of paying users (sometimes <5% of the total user base), making ARPPU (Average Revenue Per Paying User) a complementary metric for understanding the paying segment specifically.

Why Average Revenue Per User (ARPU) matters

ARPU determines how much you can sustainably pay to acquire users. Higher ARPU directly raises your profitable CPI ceiling, enabling more aggressive UA spend. Creative strategies that attract users predisposed to monetize (not just install) compound over time into meaningfully higher revenue per cohort.

Formula

ARPU = Total Revenue ÷ Total Active Users

Frequently asked questions

Hyper-casual games: $0.05–$0.30 monthly ARPU. Mid-core games: $1–$5. Hardcore strategy: $5–$30+. Subscription apps typically target $5–$15+ monthly ARPU from paying subscribers.

Related terms

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