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ARPDAU refers to the "average revenue per active user per day", and is one of the important metrics used by operators of mobile apps and online games. This metric indicates how much revenue an app is generating from its daily active users, and helps evaluate the efficiency of the app's monetization.
Why is this important?
Monitoring and Evaluation of Revenue
By tracking ARPDAU, developers and marketers can understand how much revenue their app is generating daily. This allows them to analyze revenue trends and assess the health of their business.
Optimization of Monetization Strategy
Using ARPDAU data, the effectiveness of different monetization models such as in-app advertisements, in-app purchases, and subscriptions can be evaluated, allowing focus on the most profitable strategies.
Correlation with User Engagement
ARPDAU is closely related to user engagement. The longer active users spend time in the app, the more opportunities for ad exposure and the higher the likelihood of in-app purchases. Therefore, improving user engagement is essential to increase ARPDAU.
Evaluation of Marketing ROI
By comparing the advertising cost for user acquisition and ARPDAU, the return on investment (ROI) of marketing campaigns can be evaluated. If ARPDAU exceeds the user acquisition cost, it can be said that the campaign is profitable.
Benchmarking and Competitive Analysis
ARPDAU can also be used for benchmarking against the industry and competitors. If an app's ARPDAU is higher compared to other apps in the same category, it can be said that the app is competitive in the market.
Ensuring Long-term Profitability
Optimizing ARPDAU strengthens the app's ability to generate revenue in the long term. It is important to maximize revenue from existing users, rather than relying on temporary user increases.