App marketing metrics comparison

ARPPU shows how much money, on average, a single paying user generates over a set period of time.

CPE is a pricing model in which advertisers pay whenever a user takes a specific desired action within the app.

App owners, marketers, and product managers

Advertisers

• Isolates paying users in a freemium model, so you can focus on revenue
• Helps you understand characteristics of paying users so you can attract lookalikes
• Informs campaign decisions around the most effective creatives and channels

• Good for driving interactions with an app after it’s installed, improving retention
• Advertisers can pay on a sliding scale depending on the action

• Convince non-paying users to become paying ones
• Reward and incentivize your “whales” who spend the most
• Adjust your pricing models to encourage higher spend
• Experiment with different ad formats – test different placements, or try playable or rewarded ads

• Identify the most profitable user behaviors to incentivize
• Use predictive marketing to gain behavioral insights
• Combine CPI and CPE campaigns to drive both installs and post-install engagement

Average revenue per paying user (ARPPU)

Cost per engagement (CPE)