What is the Average revenue per daily active user (ARPDAU)?
Average Revenue per Daily Active User (ARPDAU) is a key metric used in the mobile gaming industry to measure the average revenue generated by each user who engages with a game on a daily basis. It is calculated by dividing the total revenue generated within a specific time period by the number of daily active users (DAU) during that same period.
Why ARPDAU is important?
Monetization Strategy: ARPDAU helps game developers and publishers understand the effectiveness of their monetization strategies. By analyzing this metric, they can determine how much revenue is being generated from each active user, allowing them to optimize their in-app purchases, advertising, or subscription models.
User Engagement and Retention: ARPDAU provides insights into the engagement and retention levels of a game's user base. Higher ARPDAU indicates that users are actively spending money within the game, which suggests a higher level of engagement and loyalty. It also signifies that users find value in the game's offerings and are willing to invest in it.
Profitability and Sustainability: ARPDAU directly impacts a game's profitability and long-term sustainability. If the average revenue generated per user is high, it indicates that the game has a strong monetization strategy and can generate sufficient revenue to cover development and operational costs. This metric is particularly crucial for free-to-play games that rely on in-app purchases or advertising revenue.
Benchmarking and Industry Comparison: ARPDAU serves as a benchmarking tool, allowing game developers and publishers to compare their revenue generation against industry standards and competitors. By analyzing how their ARPDAU compares to similar games in the market, they can assess their performance and identify areas for improvement.