Glossary

Average Revenue Per User

Updated on Jun 2, 2026

Learn what average revenue per user means, how ARPU differs from ARPPU and ARPDAU, and how mobile teams should use it.

What Is Average Revenue Per User?

Average revenue per user, or ARPU, measures how much revenue each active user generates on average during a selected period.

Google Analytics defines average revenue per user as total revenue generated on average from each active user, whether they made a purchase or not. Its metric description includes ad revenue, purchase revenue, in-app purchases, and subscriptions in the ARPU formula when those revenue sources are available.

How ARPU Works

A common formula is:

Total revenue / active users = ARPU

ARPU can be analyzed by:

• App version
• Country
• Campaign
• Acquisition source
• User cohort
• Subscription plan
• Ad monetization setup
• Account segment
• Time period

It is useful because it spreads revenue across the active user base, not only paying users.

Why It Matters for Mobile Teams

ARPU helps teams understand whether an app is generating more value from its users over time. It can reflect ad demand, payer conversion, subscription behavior, in-app purchases, retention, and product quality.

But ARPU can be misleading if used alone. A small group of high spenders may lift ARPU while most users remain inactive. A new ad strategy may increase ARPU but hurt retention. A subscription change may increase revenue but create more refunds or support issues.

Teams should compare ARPU with ARPPU, ARPDAU, active users, retention, conversion, refunds, and user experience.

Practical Evaluation

Teams should ask:

• Which revenue sources are included?
• Are refunds removed?
• Are test purchases excluded?
• Which users count as active?
• Is the period daily, weekly, or monthly?
• Is the sample large enough?
• Did user mix change?
• Did app behavior change?
• Are analytics events complete?

Revenue metrics need operational context. If purchase screens fail or ad placements do not load, the metric changes for technical reasons, not only business reasons.

Teams should also watch user-base changes. ARPU can rise when low-value users leave, even if the product is not improving. It can fall when a campaign brings in many new users who have not yet monetized. Cohort analysis helps explain those shifts.

How MoiMobi Fits

MoiMobi cloud phones help teams review real Android app workflows that affect revenue: ads, checkout, onboarding, login, account state, and support flows.

For mobile automation, ARPU-related workflows should be tested with clear logs and review.

Bottom Line

Average revenue per user measures revenue spread across active users.

Use ARPU with payer metrics, retention, refunds, and controlled mobile workflow testing for a more accurate monetization picture.