What is ARPU?

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ishanijerin1
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Joined: Tue Jan 07, 2025 4:35 am

What is ARPU?

Post by ishanijerin1 »

It may not be a term you're familiar with, but ARPU stands for "Average Revenue Per User" and represents the average revenue per user.

This is a useful KPI for business models that require monthly subscriptions, such as SaaS models and mobile phone carriers.

The calculation method is as follows:

Sales over a certain period ÷ Number of users

It will be.


Similar indicators to ARPU
In addition to ARPU, there are several risk managers email database other metrics based on a similar concept.

It is a good idea to choose indicators that match your monetization model and revenue structure.

ARPPU: Abbreviation for "Average Revenue Per Paid User." It indicates the amount of revenue per user who pays for the service. It is used when you want to use the average revenue from paying users only for a service that has a free plan.

AMPU: Abbreviation for "Average Margin Per User". This is an indicator that shows the amount of gross profit per user. It is also sometimes read as "amp."


ARPA...Abbreviation for "Average Revenue Per Account." This is an indicator used by KDDI, which operates a mobile phone business, instead of ARPU, which it had previously used. As we move from an era in which one person uses one device to an era in which people use multiple devices, ARPA is used when the indicator is the average revenue per account, rather than the average revenue per device. It is often pronounced as ARPA.


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A member of the inglow marketing team. After graduating from university, he joined a web advertising company and was involved in marketing and sales, including web advertising operations and promotional planning. He then joined inglow in search of a broader career in digital marketing. He is well-versed in Google Ads, Facebook Ads, and Instagram Ads, and is dedicated to achieving the results his clients want by utilizing machine learning algorithms and proposing measures from the user's perspective.
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