App marketing metrics comparison

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

CPM indicates the price an advertiser pays for 1,000 impressions of their ad (mille is Latin for thousand).

App owners, marketers, and product managers

Advertisers and publishers

• 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

• Useful when you want to build awareness and recognition through maximum exposure
• No budget surprises – advertisers pay a fixed price for the impressions

• 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

• Compare costs for platforms, locations, and timings to determine the value of your impressions

Average revenue per paying user (ARPPU)

Cost per mille (CPM)