{"id":26224,"date":"2020-03-05T11:31:42","date_gmt":"2020-03-05T19:31:42","guid":{"rendered":"https:\/\/www.kochava.com\/?page_id=26224"},"modified":"2022-12-05T15:57:59","modified_gmt":"2022-12-05T23:57:59","slug":"arpu","status":"publish","type":"page","link":"https:\/\/www.kochava.com\/ko\/glossary\/arpu\/","title":{"rendered":"ARPU (Average Revenue Per User)"},"content":{"rendered":"[vc_row type=”full_width_background” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” bg_image=”41221″ bg_position=”center center” background_image_loading=”default” bg_repeat=”no-repeat” scene_position=”center” top_padding=”70″ bottom_padding=”70″ text_color=”light” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]\r\n

What is ARPU?<\/h1>\r\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”full_width_content” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”Full Width Line” line_thickness=”1″ divider_color=”default”][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” top_padding=”100″ bottom_padding=”100″ text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”.vc_custom_1627429806967{padding-bottom: 20px !important;}”]\r\n

Average Revenue Per User (ARPU) | Definition<\/h2>\r\n[\/vc_column_text][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”padding-3-percent” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”right” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”3\/4″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]RPU (Revenue Per User) is the amount of money (revenue) a company gets from each user, and is a metric most common for subscription-based services. ARPU (Average Revenue Per User) is the average RPU, a measurement used primarily by consumer communications, digital media, and networking companies. This metric answers the question \u201cHow much is a single customer\/user worth to a business?\u201d.<\/span>[\/vc_column_text][image_with_animation image_url=”44883″ image_size=”medium_large” animation_type=”entrance” animation=”None” animation_movement_type=”transform_y” hover_animation=”none” alignment=”center” border_radius=”none” box_shadow=”none” image_loading=”default” max_width=”100%” max_width_mobile=”default” margin_top=”50″ margin_bottom=”50″][\/vc_column_inner][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/4″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”.vc_custom_1638571245104{border-left-width: 1px !important;padding-left: 40px !important;border-left-color: #efefef !important;border-left-style: solid !important;}”]\r\n

Related Terms<\/h3>\r\nApp Analytics<\/a>\r\nNetwork<\/a>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text css=”.vc_custom_1668539127899{padding-top: 20px !important;padding-bottom: 20px !important;}”]\r\n

Why is ARPU important?<\/h3>\r\n[\/vc_column_text][vc_column_text]The ARPU metric is important because it indicates how profitable a product or service is based on how much revenue is gained from each user, and it gives you helpful insights into a businesses growth and success. It also helps companies determine the popularity of its pricing tiers as well as the effectiveness of upgrades and add-ons. ARPU can help marketers measure how much revenue a company can generate, overall customer engagement, and help understand the potential growth of the company at a per-unit level.<\/span>[\/vc_column_text][vc_column_text css=”.vc_custom_1668539138857{padding-top: 20px !important;padding-bottom: 20px !important;}”]\r\n

ARPU equation<\/h3>\r\n[\/vc_column_text][vc_column_text]To calculate the ARPU, first define a time period such as month-to-month or year-over-year. Then, take the average revenue generated within that set time period and divide it by the number of users.<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” text_align=”left” row_position=”default” row_position_tablet=”inherit” row_position_phone=”inherit” overflow=”visible” pointer_events=”all” css=”.vc_custom_1668537480362{margin-left: 0px !important;border-left-width: 0px !important;padding-left: 0px !important;border-left-color: #00b3e3 !important;}”][vc_column_inner column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” bottom_margin=”20″ column_element_direction_desktop=”default” column_element_spacing=”default” centered_text=”true” desktop_text_alignment=”center” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” overflow=”visible” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”1px” column_border_color=”#00b3e3″ column_border_style=”solid” enable_border_animation=”true” column_padding_type=”default” gradient_type=”default”][vc_column_text css=”.vc_custom_1668537843373{border-left-width: 0px !important;padding-top: 20px !important;padding-bottom: 20px !important;padding-left: 0px !important;border-left-color: #00b3e3 !important;}”]ARPU is calculated by taking the total revenue divided by the number of subscribers\/users<\/span>\r\n\r\nAverage Revenue Per User (ARPU) = Total Revenue \/ Total Number of Users<\/span>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_column_text]For example, a company produced $30 million in revenue with 20,000 customers, the ARPU is $1,500.<\/span>\r\n\r\nARPU = $30 million \/ 20,000 customers = $1,500<\/span>\r\n\r\nEach customer contributed $1,500 in revenue.<\/span>[\/vc_column_text][vc_column_text css=”.vc_custom_1668539148510{padding-top: 20px !important;padding-bottom: 20px !important;}”]\r\n

What is a good ARPU?<\/h3>\r\n[\/vc_column_text][vc_column_text]While a high ARPU is ideal, this metric alone doesn\u2019t tell the whole story. To get the most accurate picture, ARPU should be analyzed with other metrics such as customer churn rate (CCR), customer acquisition cost (CAC), and customer lifetime value (LTV<\/a>). Without looking at these metrics, your APRU could be misleading. You can have a high ARPU and at the same time have a high churn rate or acquisition cost.<\/span>\r\n\r\nSolely focusing on your average revenue per user can give you a false view of your company\u2019s growth and profitability. Be sure to analyze other metrics that can help bolster or refute your ARPU value so that you can determine if you\u2019re on the right track.<\/span>[\/vc_column_text][vc_column_text css=”.vc_custom_1668539158633{padding-top: 20px !important;padding-bottom: 20px !important;}”]\r\n

What to consider (and not consider) in your calculation<\/h3>\r\n[\/vc_column_text][vc_column_text]When calculating ARPU, be sure you are looking at the whole picture of your business so that you can get the most accurate result. There are some things that should be considered and other things that are better to leave out such as:<\/span>[\/vc_column_text][vc_column_text css=”.vc_custom_1668537823573{padding-top: 20px !important;padding-bottom: 20px !important;}”]\r\n\r\n\r\n\r\n\r\n
Consider<\/b><\/td>\r\nDon\u2019t consider<\/b><\/td>\r\n<\/tr>\r\n
\r\n
    \r\n \t
  • Monthly recurring revenue (MRR)<\/span><\/li>\r\n \t
  • Upgrades and downgrades<\/span><\/li>\r\n \t
  • Lost revenue from churn<\/span><\/li>\r\n \t
  • Total paying customers<\/span><\/li>\r\n<\/ul>\r\n<\/td>\r\n
\r\n