ARPPU (Average Revenue Per Paying User)

How to Find Users That Are Showing You The Money

ARPPU is the average revenue a paying user generates during a specified time frame. “Paying” users are defined as users who actively spend money, either for in-app activity or for the download. The ARPPU metric is most commonly used by gaming apps to pinpoint high quality user segments who spend money inside an app. These are commonly known as whales because a very small portion of them are responsible for a very large percentage of total revenue.

By isolating paying users from non-paying users in your calculation, it is easier to make more accurate decisions on how to increase revenue by pinpointing, for instance, the networks that deliver paying users with the largest spend. To calculate ARPPU, divide the total revenue by the number of paying users.